
Class J K %?>5& 



Book 



PRr:s^x']'ii;n by 



? 






REPUBLICAN 
CAMPAIGN 
EXT - BOOK 



ISSUED BY THE 

REPUBLICAN NATIONAL 
COMMITTEE 




EXTRACTS FROM THE PUBLIC UTTERANCES OF WM, H. TAFT. 



"The fundamental objection to the proposed 
(Democratic) plan to guarantee deposits in na- 
tional banks is that it puts a premium on reckless 
banking. It would promote speculation at the ex- 
pense of his feiiow-banker, and that ultimately 
means at the expense of the depositors."— At Hot 
Springs, Va., August 25, 1908. 

"Never in the history of this country has there 
been an Administration that has passed more 
measures directly in the interest of the laboring 
classes than has the present Republican Adminis- 
tration."— At Athens, Ohio, August 29, 1908. 

"I believe that equal justice to all men and the 
fair and impartial enforcement of these (the Thir- 
teenth, Fourteenth and Fifteenth) amendments are 
in keeping with the real American spirit of fair 
play."— From Address of Acceptance, July 28, 
1908. 

"Evils are to be suppressed by definite and prac- 
tical measures— not by oratory or denunciation." 
—At Greensboro, N. C, July 9, 1906, 

"The present business system of the country 
rests on the protective tariff and any attempt to 
change it to a free trade basis will certainly lead to 
disaster."— At Columbus, Ohio, August 19, 1907. 

"i would favor a provision allowing the defend- 
ant in contempt proceedings to challenge the 
judge issuing the injunction and to call for the 
designation of another judge to hear the issue."— 
At Cooper Union, N. Y., January 10, 1908. 

"The President should always be near the peo- 
ple in thought and as near them in person as his 
position will permit. Once convinced that he has 
divined and is carrying out their real wish, neither 
elated by any ephemeral outburst of applause nor 
diverted by an outburst of censure, he must pro- 
ceed unwaveringly, always by lawful methods, to 
the accomplishment of the popular will."— From 
Mr. Taft's "Conception of the Presidency," in Col- 
lier's. 



) 



=n 



REPUBLICAN 

61" 

CAMPAIGN^ 
TEXT - BOOK 

1908 



Issued by the 

Republican 

National 
Committee 



PKtSS OF DUNLAP PRINTING COMPANY 

'H2.-J4-J6-J8 Cherry Street and 
118-20-1Z-24-26 N. Juniper Street 

Philadelphia, Pa. 



INDEX. 



A 

Page. 

Addystone Pipe and Steel Compaay case 261 

Addystone pipe case : Judge Ta'fts decision in 50 

Afro- Americans in Government service 301 

Afro-American voters, Bryan's attitude with reference to 290 

Agricultural Department 38G 

Agricultural products, priaes of, on farms, 1892-1907 203 

Agricultural prosperity in mfg. and non-manufacturing sections 191 

Agriculture, prosperity of 179 

Animals, farm, value of, in United States, 1890-1007 207 

Appropriations by first session, Sixtieth Congress 325 

Appropriations, record of, 1890 to 1909 326 

Arbitration, international, Presidents McKinley and Roosevelt on 334 

"Assumed risk" decision of Judge Taft 250 

B 

Balance of trade and farmers 388 

Balance of trade under McKinley, Wilson, and Dingley tariffs 487 

Bank deposits, guarantee of 307 

Bank deposits, insurance of 19 

Bank deposits in United States, 1875-1907 89 

Banks, savings : depositors and deposits, 1820-1907 90 

Banks, savi»gs, of world, deposits in 91 

Beet and cane sugar product of world, 1840-1907 196 

Beet sugar in United States 194 

Beet sugar production in United States, growth of 199 

Boots and shees, prices ef under Dingley Act 148 

Bryan and Taft compared and contrasted 270 

Bryan, New York World on 276-7 ; 286-8 ; 291 

Bryan on Government ownership of railways 282-285 

Bryan on retention of part of Philippines 288 

Bryan, Reger C. Sullivan on, in 1906 295 

Bryan's attitude with reference to eolored voters 290 

Bryan's "Commoner" oh Negro problem 306 

Bryan's corporation campaign fund in 1896 276 

"Bryan's nomination means Taft's election," from New York World. . . 291 

Bryans speech of acceptance 476 

Bryan's trust ratio 292 

Bryan, Watterson's view of, in 1896 293 

Building associations in United States 94 

Bureau of Immigration, work of 394 

Business depression of 190T 54 



Chairmen Republican State Committees 543 

Cleveland, Grover, predicts Wm. H. Taft's election 28k 

Colonies, British, trade with United Kingdom 441 

Colonies, principal, tariff relations with governing countries 128 

Colored citizen, Mr. Taft on 22 

Colored citizens in Government service 301 

Colored voters, attitude of the two parties toward 297 

Colored voters, Bryan on 290, 297 

Commerce and Labor, Department of 390 

Commerce of the United States by grand divisions of the world 500 

Commerce of United States by great groups, 1820-1908 170 

Commerce under each President, Washington to Roosevelt 152 

Commerce under McKinley, Wilson, and Dingley tariffs 4S7 

Commercial failures in United States 94-95 

Commercial, financial, and industrial conditions in United States, 1902-7 97 

"Commoner" on the race problem 306 

Conditions, financial, commercial and industrial, in U. S., 1902-7 97 

Congress, Sixtieth, review of first session of 322 

Conservation polioy 402 

T 



vi INDEX. 

Page. 

Consular service, improvement of 337 

Campaign contributions, publicity of : Mr. Taft on 24 

Campaign contributions publicity bill 279 

Campaign contributions, publicity of 272 

Centralization, change in Democratic sentiment respecting 295 

Cheap freights, effect upon protective tariffs 107 

Circulation of money in United States 68, 88 

Civil service 408 

Close States, votes in, 1880 to 1906 527 

Coal production and consumption in United States, Germany, and 

United Kingdom 149 

Consumption of sugar in United States and source of supply 199 

Contract labor excluded 395 

Contributions to campaigns, publicity of 24, 272 

Conventional tariff of Germany, example of ' 127 

Conventional tariff systems 121 

Corporation, Bureau of ; its work 34 

Corporation contributions to Bryan's campaign fund in 1896 270 

Corporation regulation : Standard Oil-Democratic method 52 

Corporations and the courts 47 

Corporations, regulation of 31 

Corporations : work of Department of Justice. . . . '. . . . 36 

Cortelyou, Secretary, on panic of 1907 60 

Cost of living and wages 238 

Cotton manufacturing in United States 164, 175 

Cotton taken by northern and southern mills, respectively, 1884-1905. 175 

Countervailing duties on petroleum originated with Democrats 14« 

Courts and corporations 47 

Crops, value of, 1885 to 1907 491 

Cuba, Mr. Taft's part in pacification of 443 

Cuba, recent government of by United States 442 

Currency Act of 1908 72 

Currency, Mr. Taft on < 18 

Currency of the world, 1873-1906 . . 79-80 

Currency of the United States 68 

D 

Debt of the United States, historical analysis of 503 

Deficit, Mr. Taft on . 26 

Deficits under Protection and low tariff, respectively 151 

Democratic and Republican record on publicity of campaign contributions 272 
Democratic plan of trust regulation that proposed by Standard, Oil 

magnates 52 

Democratic platform 468 

Democratic sentiment on centralization changing 295 

Democratic tariff platforms, 1860-1908 , 140 

Democrats as expansionists 438 

Department of Agriculture 386 

Department of Commerce and Labor . 390 

Department of Justice, review of its work 340 

Department of Justice, work of regarding corporations 36, 340 

Department of State, review of its work 331 

Department of the Interior 373 

Department of War, review of its work under Presidents McKinley and 

Roosevelt 344 

Deposits in banks of United States, 1875-1907 89 

Dingley tariff, protests against and effect thereof on trade 120 

E 

Bight-hour law, administration of 243 

Election laws in South 297 

Elections in southern States, Bryan on 290 

Electoral college, 1908 526 

Equal justice to all men 297 

Emergency Currency Act of 1908 72 

English trusts flourishing despite free trade 108 

Exchange value of farm products, 1896-1907 182 

Expenditures and receipts of United States, 1800-1908 499 

Expenditures, national growth of compared with growth of wealth 327 

Expansionists, Democrats as 438 



INDEX. vli 

Page. 

Export prices, reduction of in foreign countries 110 

Exports and imports of the United States, 1790-1908 498 

Exports of manufactures 115 

Exports to countries protesting against Dingley tariff, growth in 120 

F 

Factory, value of to fa rmer 189 

Failures in United States ■ . . .- 94 

Farm animals, number and value of in United States, 1890-1908 207 

Farm crops, value of, 1895-1907 491 

Farm products, exchange value of, 1896-1907 182 

Farm products, freight rates on, 1868-1907 205 

Farm products, growth in prices of, compared with prices of articles 

of farm consumption 200 

Farm products exported under three tariffs 489 

Farm products, prices of, 1892-1907, by States and principal articles.. 203 

Farm prosperity In manufacturing and non-manufacturing sections. . . . 191 

Farm value, principal crops, 1885 to 1907 491 

Farmer, value of factory to 189 

Farmers and balance of trade 388 

Federal courts and organized labor 251 

Financial panic of 1907 54 

Freight rates on farm products, 1868-1 907 .- 205 

French tariffs, example of 125 

Financial, commercial, and industrial conditions in U. S., 1902-7.... 97 

Friar lands, Philippine Islands 422 

G 

German tariff agreement 115 

German tariff, example of conventional . . . •. 127 

German tariff system described 121 

Government ownership, Bryan on 282-285 

Growth of exports to countries protesting against Dingley tariff, 1896- 

1907 120 

Growth of sugar production in United States 199 

Guarantee of bank deposits 307 

H 

Harbor and river improvements 356 

Hawaiian Islands, conditions in 425 

Hawaiian, Philippine, and Porto Rican sugar entering United States. . 198 

Hawaii : Democratic efforts to annex 438 

Hearst on Democratic party and its candidates 292 

Hearst's reply to Gompers 292 

Hepburn Act : its effect on control of railways 42 

I 

Immigration Bureau, work of 394 

Immigration 'of convict labor excluded 395 

Importation and exportations of manufactures by United States and 

United Kingdom, 1870-1907 118 

Imports and exports of the United States, 1790-1908 498 

Income tax, Mr. Taft on 25 

Increase of offices by Sixtieth Congress 326 

Industrial, commercial, and financial conditions in United States, 1902-7 97 

Injunctions : Mr. Taft on 15, 255 

Injunctions : notice and hearings before 15 

Insurance of bank deposits, Mr. Taft on 19 

Interior Department 373 

International arbitration, Presidents McKiuley and Roosevelt on 334 

International peace, work of Government for 334 

Interstate Commerce Commission, work of 41 

Iron and steel manufacturing in United States ; capital, wages, em- 

' ployees, etc., 1870-1905 177 

Iron and steel industry in United States, 1880-1907 176 

Iron and steel industry of United States 156, 176 

tron ore, selling price, 1894-1 908 118 

Iron, pig, world's production of, 1800-1 907 178 



j 

PA<U. 

Jim crow cars in South 301 

Justice, Department of ; review of its work 340 

Justice, Department of, work of regarding corporations 340 

K 

Kbhrs, letter of President Roosevelt to Conrad Kohrs, in regard to Mr. 

Taft's candidacy 28a 



Labor bureau reports in various States 234 

Labor decisions of Judge Taft < .- . . 256 

Labor laws in Republican and Democratic States 234 

Labor legislation, Republican 239 

Labor, Taft's relation to 248 

Labor, wages and prices 208 

M 

Manufactures, exports ef 115 

Manufactures : exports of from United States, United Kingdom, and 

Germany, 1875-1907 118 

Manufactures : importation and exportation ef by United States aad 

United Kingdom, 1870-1907 118 

Manufacturing and non-manufacturing States, prosperity in 492 

Manufacturing industries of United States: capital, wage-earner*, 

wages, and products , 178 

Manufacturing, progress of in United States 185#>-1905 498 

Maximum and minimum tariff', example ef 125 

Maximum and minimum tariff systems 122 

McKinley, Hon. W. B., letter ef President Roosevelt to, on election of 

Republican House 28i 

Most favored nation clause, relation of to tariffs 123 

Meat inspection and pure-food laws .* 287 

Merchant marine 450 

Militia system, new 854 

Modern tariff systems of world . 121 

Money in circulation in United States 68, 88 

Meney in circulation in United States, 1800-1908 88 

Money of the world, 1872-1906 79-80 

Money i>anie of 1907 - 54 



N 

Naval expenditures authorized by Sixtieth Congress 363 

Naval strength, United States and fereign countries 365 

Navies of world, principal 365-366 

Navy, cost of since 1883 367 

Navy Department 360 

Navy, reasons for large 260 

National banks of the United States 92 

National expenditures, growtk of, compared with growth of national 

wealth 327 

Negro, Bryan's attitude with reference to 290 

Negro, Mr. Taft on, 22 

Negro voter, attitude of two parties toward 297 

New currency law of 1908 , 72 

New militia system 354 

New navy, cost of vessels 369 

New York World on Bryan 276-277 ; 286-288, 291 

Non-contiguous territory of the United States 411 



Offices, increase of by Sixtieth Congress 326 

Orient, statesmanship of Mr. Taft in 266 

Our new navy, cost of 367 

"Out-of-work benefits" under Democratic and Republican adminis- 
trations 238 



IX BEX. ki 

P 

Pac«. 

Panama Canal, conditions on 429 

Panic, money, of 1907 54 

Paper and wood pulp investigation 327 

Party platforms on tariff 140 

Party votes in close States, 188 ' to 1906 527 

Peace, international, work of Government for 334 

Pension laws of 1907-8 386-387 

Pension legislation 381 

Petroleum duties, countervailing, originated in Wilson Tariff Act 146 

Phelan contempt case 260 

Philippine Islands, conditions in 403 

Philippines : Bryan favors retention of part of 288 

Philippines, Mr. Taft on. 20 

Philippines, Taft's labor record in 252 

Pig iron production of U. S., Great Britain, and Germany, 1880-1907.. 156 

Fig iron, world's production of, 1800-1907 178 

Platform of Democratic party, 1908 468 

Platform of Republican party, 1908 461 

Platforms of parties on tariff '. . . * . 140 

Porto Rlcan, Hawaiian, and Philippine sugar entering United StateM . 198 

Porto Rico, conditions in 426 

Postal service '. 370 

Post Office Department, work of 370 

Presidential vote by States, 1864 to 1904 526 

President Roosevelt, public services of SIS 

President, vote for, by States, 18G4 to 1904 526 

Prices, advance of, compared with advance in wages 208 

Prices of exports in foreign countries 110 

Prices, relative, of articles of farm production and consumption 200 

Prices, 1880-1907 485 

Production of pig iron in U. S., Great Britain, and Germany, 1880-1907 156 

Progress of the U. S. in its material industries, 1850 to 1908 507 

Prosperity 81 

Prosperity: comparison of conditions in 1907 with those of 1897 85 

Prosperity in manufacturing and non-manufacturing States 493 

Prosperity of agricultural population of United States 179 

Protection a feature of early tariffs 90 

Protection and the textile industry 164 

Protection, effect of cheap freights upon 10T 

Protection not the mother of trusts 108 

Protection rendered necessary by cheap labor and eheap freights 10T 

Publicity bill regarding campaign contributions 279 

Publicity of campaign contributions 272 

Protective tariff, effect on steel rail industry 157 

Publicity of campaign contributions, Mr. Taft on 24 

Pure food and meat inspection laws 887 

B 

Railway labor under Republican and Democratic Administrations 288 

Railway regulation 41 

Railways, Bryan on government ownership of 282-285 

Railways of the United States, capital, earnings, ete 505 

Receipts and expenditures of United States, 1800-1908 499 

Receipts and expenditures under each President, Washington to 

Roosevelt 154 

Reciprocity 130 

Reciprocity, effect on trade of United States 136 

Reciprocity experiences of United States 131 

Regulation of corporations 31 

Regulation of railways 41 

Relative prices of articles of farm production and consumption 200 

Republican aud Democratic record on publicity of campaign contributions 272 

Republican labor legislation 239 

Republican National Committee 540 

Republican Congressional Committee 541 

Republican platform, 1908 4gl 

Republican State Committees, Chairmen of 548 

Republican tariff platforms, 1860-1908 140 

Revenues under protection and low tariff, respectively 181 

Revisions of tariffs in United States history 181 



x INDEX. 

Page. 

River and harbor improvements 35g 

Roosevelt, President, letter on necessity of election of Republican 

House i .' 23i 

Roosevelt, telling why Mr. Taft would make a great President ; letter 

of President 28a 

Root's, Elihu, appreciation of James S. Sherman 536j 

Ryan's contribution to Nebraska campaign fund 277 

s 

Savings banks deposits of world .....' , 91 

Savings banks in United States, deposits and depositors, 1820-1907... 90 

Secretary of Treasury on money panic of 1907 60 

Senators, election of : Mr. Taft on 25 

Share of America's sugar supply produced at home 199 

Sheep and wool industry in United States 191 

Sheep, prices 'and total value of in United States under five tariffs. . . . 193 

Sheep, value of in United States, 1880-1908 . . . . 147 

Shipping, legislation in behalf of 450 

Silk industry in United States , . 166 

Silver trust contributions to Bryan's campaign fund in 1896 276 

Sixtieth Congress, naval expenditures authorized by 363 

Sixtieth Congress, review of work of first sessi >n of 322 

South, election laws of . . . 297 

Southern elections, Bryan on 290 

Southern sentiments regarding Negro voters 303-306 

State Department, review of its work 331 

Standard Oil-Democratic plan of trust regulation 52 

Sherman, Hon. J. S.j speech of, accepting nomination 537 

Sherman, James S., Elihu Roofs appreciation, of 5361 

Sherman, James S., sketch of life 536a 

State labor bureau reports 234 

Statistical statements, general 485 

Steamship trusts abroad 455 

Steel corporation not a monoply 157 

Steel .rail industry under protection 157 

Steel rails, production and prices cf, 1860, 1870, and 1908 117 

Sugar, beet and cane, product of world, 1810-1907 190 

Sugar, beet, production of in Uni'.efl States 194 

Sugar from Hawaii, Porto Rico, and Philippines entering Unite* S.at s 193 

Sugar from non-contiguous territory of United States 198 

Sugar production, imports, exports, and consumption of United State.-, 

with prices at New York, and world production 199 

Sugar production in United States, growth of 199 

Sugar production in U. S. since annexation of Hawaii and Porto Rico. 195 

Sullivan, Roger C, on Bryan in 1906 295 

Surplus or deficit under each Administration, Washington to Roosevelt 154 

Surplus under protection, deficit under low tariff 151 

T • 

Taft and Bryan contrasted and compared 270 

Taft, Hon. W. H., speech of accepting nomination 1 

Taft, letter of President Roosevelt supporting the candidacy of Win. 

H. Taft 28a 

Taft, William H., Grover Cleveland's estimate of 28k 

Taft's Addystone pipe case decision ...-..•....- 261 

Taft's decision in Addystone pipe case 50 

Taft's decisions relative to labor ' 249 

Taft's labor decisions ' 256 

Taft's labor record in the Philippines 252 

Taft's relation to Union labor 248 

Taft's statesmanship in the Orient 206 

Taft's Wabash strike decision 20 1 

Taft's work in the Philippines 403 

Taft, William H., sketch of life 528 

Tariff 99 

Tariff agreement with Germany 115 

Tariff of France, an example of maximum and minimum 125 

Tariff relations of colonies with governing countries 12S 

Tariff, party platforms on 11" 

Tariff revisions in United Slates history 101 



INDEX. xi 

Page. 

Tariffs, 'principal, 1791-1908 104 

Tariff systems of world 121 

Textile industries of United States, 1850-1 9^5 1G4, 168 

Theodore Roosevelt, public services of 310, 318 

Tillman on colored vote*rs 297 

Tin plate industry in United States 159 

Tin plate industry, relation to labor 161 

Trade balances under protective and low tariffs 150 

Trade under McKinley, Wilson, and Dingley tariffs 487 

Treasury Department, work of :;9S 

Treasury, Secretary of, on money panic of 1907 60 

Treaties, international under President Roosevelt 332 

Tropical imports into United States 439 

Trusts, control of 31 

Trust ratio, Bryan's 292 

Trusts in free-trade England 10S 

Trusts not a product of protection 108 

Trusts, regulation of 3 J 

u 

L'nion labor, Mr. Taft's relation to 248 

United States Steel Corporation not a monopoly 157 

V 

Value of factory to farmer 189 

Value of farm animals in United States, 1890-1908 207 

Vote, by States, for President, 1864 to 1904 526 

Votes, Republican and Democratic, in close States, 1880 to 1906 527 

W 

Wabash strike decision by Judge Taft 261 

Wages and prices, relative advance of 208 

W ages and cost of living 238 

Wages, capital, and products of principal manufacturing industries, 

1880-1905 173 

War Department, review of its work under Presid^mt^" MoKinley and 

Roosevelt 344 

Watterson's opinion of Bryan in 1896 293 

Wheat production and consumption of world 95 

Wood pulp and paper investigation 327 

Wool manufacturing in United States 165 

Wool, production, imports, «and consumption of United States 194 

World's money, 1872-1906 79-80 

World's production of sugar, 1840-1907 196 

World's producton and consumption of wheat 95 

World's production of pig iron, 1800-1907 178 



SPEECH 

OF 

HON. WILLIAM HOWARD TAFT. 

At Cincinnati, O., July 28, 1908, Accepting the Republican 
Nomination for the Oflice of President of the United States. 



Senator Warner and Gentlemen of the Committee: 

I am deeply sensible of the honor which the Republican 
National Convention has conferred on me in the nomination 
which you formally tender. I accept it with full appreciation 
of the responsibility it imposes. 

Republican Strength in Maintenance of Roosevelt Policies. 

Gentlemen, the strength of the Republican cause in the cam- 
paign at hand is in the fact that we represent the policies essen- 
tial to the reform of known abuses, to the continuance of liberty 
and true prosperity, and that we are determined, as our plat- 
form unequivocally declares, to maintain them and carry them 
on. For more than ten years this country passed through an 
epoch of material development far beyond any that ever occurred 
in the world before. In its course certain evils crept in. Some 
prominent and influential members of the community, spurred 
by financial success and in their hurry for greater wealth, be- 
came unmindful of the common rules of business honesty and 
fidelity and of the limitations imposed by law upon their actions. 
This became known. The revelations of the breaches of trust, 
the disclosures as to rebates and discriminations by railways, 
the accumulating evidence of the violatioa of the anti-trust law 
by a number of corporations, the overissue of stocks and bonds 
on interstate railways for the unlawful enriching of directors 
and for the pwrpose of concentrating control of railways in one 
management, all quickened the conscience of the people, and 
brought on a moral awakening among them that boded well for 
the future of the country. 

What Roosevelt Has Done. 

The man who formulated the expression of the popular con- 
science and who led the movement for practical reform was 
Theodore Roosevelt. He laid down the doctrine that the rich 
violator of the law should be as amenable to restraint and pun- 
ishment as the offender without wealth and without influence, 
and he proceeded by recommending legislation and directing ex- 
ecutive action to make that principle good in actual performance. 
He secured the passage of the so-called rate bill, designed more, 
effectively to restrain excessive and lix reasonable rates, and to 

1 



2 SPEECH OF HON. W. H. TAFT. 

punish secret rebates and discriminations which had been cen- 
eral in the practice of the railroads, and which had done much to 
enable unlawful trusts to drive out of business their competitors 
It secured much closer supervision of railway transactions and 
brought within the operation of the same statute express com- 
panies, sleeping- car companies, fast freight and refrigerator 
lines, terminal railroads and pipe lines, and, in order to avoid 
undue discrimination, forbade in future the combination of the 
transportation and shipping business under one control. 

President Roosevelt directed suits to be brought and prosecu- 
tions to be instituted under the anti-tnist law to enforce its pro- 
visions against the most powerful of the industrial corporations 
He pressed to passage the pure food law and the meat inspection 
law in the interest of the health of the public, clean business 
methods and great ultimate benefit to the trades themselves. He 
recommended the passage of a law, which the Republican con- 
vention has since specifically approved, restricting the future 
issue of stocks and bonds by interstate railways to such as may 
be authorized hy Federal authority. He demonstrated to the 
people by what he said, by what he recommended to Congress, 
and by what he did the sincerity Of his efforts to command re- 
spect for the law, to secure equality of all before the law. and to 
save the country from the dangers of a plutocratic government, 
toward which we were fast tending. In this work Mr. Roosevelt 
has had the support and sympathy of the Republican party, and 
its chief hope of success in the present controversy must rest on 
the confidence which the people of the country have in the sin- 
cerity of the pai'ty's declaration in its platform that it intends 
to continue his policies. 

\eeessary to Devise Some Means of Permanently Securing 
Progress Made. 

Mr. Roosevelt has set high the standard of business morality 
and obedience to law. The railroad rate bill was more useful 
possibly in the immediate moral effect of its passage than even 
in the legal effect of its very useful provisions. From its enact- 
ment dates the voluntary abandonment of the practice of rebates 
and discriminations by the railroads and the return by their 
managers to obedience to law in the fixing of tariffs. The pure 
food and meat inspection laws and the prosecutions directed by 
the President under the anti-trust law have had a similar moral 
effect in the general business community and have made it now 
the common practice for the great industrial corporations to com 
suit the law with a view to keeping within its provisions. It has 
also had the effect of protecting and encouraging smaller com- 
petitive companies so that they have been enabled to do a profit- 
able business. " * 

But we should be blind to the ordinary working of human na- 



SPEECH OF HON. W. fJ. TAFT. 3 

ture if we did not recognize that the moral standards set by 
President Eoosevelt will not continue to be observed by those 
whom cupidity and a desire for financial power may tempt unless 
the requisite machinery is introduced into the law which shall in 
its practical operation maintain -these standards and secure the 
country against a departure from them. 

Chief Function of Next Administration to Clinch What Has 
Been Done. 

The chief function of the next administration, in my judg- 
ment, is distinct from, and a progressive development of, that 
which has been performed by President Roosevelt. The chief 
function of the next administration is to complete and perfect 
the machinery by which these standards may be maintained, by 
which the lawbreakers may be promptly restrained and pun- 
ished, but which shall operate with sufficient accuracy and dis- 
patch to interfere with legitimate business as little as possible. 
Such machinery is not now adequate. Under the present rate 
bill, and under all its amendments, the burden of the Interstate 
Commerce Commission in supervising and regulating the opera- 
tion of the railroads of this country has grown so heavy that it 
is utterly impossible for that tribunal to hear and dispose, in 
any reasonable time, of the many complaints, queries and issues 
that are brought before it for decision. It ought to be relieved 
of its jurisdiction as an executive, directing body, and its func- 
tions should be limited to the quasi- judicial investigation of com- 
plaints made by individuals, arid by a department of the Govern- 
ment charged with the executive business of supervising the 
operation of railways. 

Publicity and Supervision. 

There should be a classification of that very small percentage 
of industrial corporations having power and opportunity to effect 
illegal restraints of trade and monopolies, and legislation either 
inducing or compelling them to subject themselves to registry 
and to proper publicity regulations and supervision of the De- 
partment of Commerce and Labor. 

Constructive Work of Next Administration to Organize Sub- 
ordinate and Ancillary Machinery to Maintain Standards 
on One Hand, and Not to Interfere With Business 
on the Other. 

The field covered by the industrial combinations and by the 
railroads is so very extensive that the interests of the public and 
the interests of the businesses concerned cannot be properly sub- 
served except by reorganization of bureaus in the Department of 
Commerce and Labor, of Agriculture and the Department of Jus- 
tice, and a change in the jurisdiction of the Interstate Commerce 
Commission. It does not assist mailers to prescribe new duties 
for the Interstate Commerce Commission, which it is practically 



4 SPEECH OF HON. W. H. TAFT. 

impossible for it to perform, or to denounce new offenses with 
drastic punishment, unless subordinate and ancillary legislation 
shall be passed making possible the quick enforcement in the 
great variety of cases which are constantly arising of the prin- 
ciples laid down by Mr. Eoosevelt, and with respect to which 
only typical instances of prosecution with the present machinery 
are possible. Such legislation should and would greatly promote 
legitimate business by enabling those anxious to obey the Fed- 
eral statutes to know just what are the bounds of their lawful 
action. The practical constructive and difficult work, therefore, 
of those who follow Mr. Roosevelt is to devise the ways and 
means by which the high level of business integrity and obedi- 
ence to law which he has established may be maintained and de- 
partures from it restrained without undue interference with le- 
gitimate business. 

Railway Traffic Agreements Approved by Commission Should 

be Valid. 

It is agreeable to note in this regard that the Republican 
platform expressly, and the Democratic platform impliedly, ap- 
prove an amendment to the interstate commerce law by which 
interstate railroads may make useful traffic agreements if ai>- 
proved by the Commission. This has been strongly recommended 
by President Roosevelt, and will make for the benefit of the 

business. 

Physical Valuation of Railways. 

Some of the suggestions of the Democratic platform relate 
really to this subordinate and ancillary machinery to which I 
have referred. Take, for instance, the so-called "physical valua- 
tion of railway s." It is clear that the sum of all rates or receipts 
of a railway, less proper expenses, should be limited to a fair 
profit upon the reasonable value of its property, and that if the 
sum exceeds this measure it ought to be reduced. The difficulty 
in enforcing the principle is in ascertaining what is the reason- 
able value of the company s property, and in fixing what is a fair 
profit. It is clear that the physical value of a railroad and its 
plant is an element to be given weight in determining its full 
value ; but as President Roosevelt in his Indianapolis speech and 
the Supreme Court have in effect pointed out, the value of the 
railroad as a going concern, including its good will, due to effi- 
ciency of service and many other circumstances, may be much 
greater than the value of its tangible property, and it is the 
former that measures the investment on which a fair profit must 
be allowed. Then, too, the question what is a fair profit is one 
involving not only the rate of interest usually earned on nor- 
mally safe investments, but also a sufficient allowance to make 
up for the risk of loss both of capital and interest in the orig- 
inal outlay. These considerations will have justified the company 
in imposing charges high enough to secure a fair income on :.he 






SPEECH OF HON. W. H. TAFT. 6 

J 
enterprise as a whole. The securities at market prices will have 

passed into the hands of subsequent purchasers from the«origi»aI 

investors. Such circumstances should properly affect the decision 

of the tribunal engaged in determining whether the totality of 

rates charged is reasonable or excessive. To ignore them might 

so seriously and unjustly impair settled values as to destroy all 

hope of restoring confidence, and forever to end the inducement 

for investment in new railroad construction which, in returning 

prosperous times, is sure to be essential to our material progress. 

As Mr. Roosevelt has said in speaking of this very subject: 

"The effect of such valuation and supervision of securities 
cannot be retroactive. Existing securities should be tested by 
laws in existence at the time of their issue. This nation 
would no more injure securities which have become an important 
part of the national wealth than it would consider a proposition 
to repudiate the national debt." 

The question of rates and the treatment of railways is one 
that has two sides. The shippers are certainly entitled to reason- 
able rates; but less is an injustice to the carriers. Good business 
for the railroads is essential to general prosperity. Injustice to 
them is not alone injustice to stockholders and capitalists, whose 
further investments may be necessary for the good of the whole 
country, but it directly affects and reduces the wages of railway 
employees, and indeed may deprive them of their places en- 
tirely. 

From what has been said the proper conclusion would seem 
to be that in attempting- to determine whether the entire schedule 
of rates of a railway is excessive the physical valuation of the 
road is a relevant and important, but not necessarily a control- 
ling- factor. 

Physical Valuation Properly Used Will Not Generally Impair 

Securities. 

I am confident that the fixing of rates on the principles sug- 
gested above would not materially impair the present market 
values of railroad securities in most cases, for I believe that the 
normal increase in the value of railroad properties, especially in 
their terminals, will more than make up for the possible over- 
capitalization in earlier years. In some cases, doubtless, it will 
be found that overcapitalization is made an excuse for excessive 
rates, and then they should be reduced. But the "consensus of 
opinion seems to be that the railroad rates generally in this 
country are reasonably low. This is \\ by. doubtless, the com- 
plaints tiled with the Interstate Commerce Commission against 
excessive rates are so few as compared with those against un- 
lawful discrimination in rates between snippers and between 
places. Of course, in the determination of the question whether 
discrimination is unlawful or not the physical valuation of th« 
whole road is of little weight. 
2 



« SPEECH OF HON. W. H.'TAFT. 

Conclusion That Tliere Should be Physical Valuation. 

I hive discussed th^s, with some degree of detail, merely to 
point out that the valuation by the Interstate Commerce Commis- 
sion of the tangible property of a railroad is proper and may 
from time to time be necessary in settling certain issues which 
may come before it, and that no evil or injustice can come from 
valuation in such cases, if it be understood that the result is to 
be used for a just purpose and the right to a fair profit under 
all the circumstances of the investment is recognized. The Inter- 
state Commerce Commission has now the power to ascertain the 
value of the physical railroad property if necessary in deter- 
mining the reasonableness of rates. If the machinery for doing 
so is not adequate, as is probable, it should be made so. 

The Republican platform recommends legislation forbidding 
the issue in the future of interstate railway stocks and bonds 
without Federal authority. It may occur in such cases that the 
full value of the railway, and, as an element thereof, the value 
of the tangible property of the railway would be a relevant and 
importa/it factor in assisting the proper authority to determine 
whether the stocks and bonds to be issued were to have proper 
security behind them, and in such case, therefore, there should 
be the right and machinery to make a valuation of the physical 
property. 

Nat ional Control of Interstate Commerce Corporations. 

Another suggestion in respect to subordinate and ancillary 
machinery necessary to carry out Republican policies is that of 
the incorporation under national law or the licensing by national 
license or enforced registry of companies engaged in interstate 
trade. The fact is that nearly all corporations doing a commer- 
cial b. siness are engaged in interstate commerce, and if they all 
were required to take out a Federal license or a Federal charter 
the bi vdci) upon the interstate business of the country would be- 
i ome intolerable. 

«hr>ul<l he Limited to Small Percentage by Classification. 

It is necessary, therefore, to devise some means for classi- 
fy" eg and insuring Federal supervision of such corporations 
s have the power and temptation to effect restraints of inter- 
ite trade and monopolies. Such corporations constitute a 
\.u-v small percentage. of all engaged in interstate business. 

Mr. Roosevelt's Proposed Classification. 

With such classification in view, Mr. Roosevelt recommended 

n amendment to the anti-trust law. known as the Hepburn 
, ill. which provided for voluntary classification and created a 
rong motive therefor by granting immunity from prosecution 
: >r reasonable restraints of interstate trade to all corporations 
.•. hich would register and submit themselves to the publicity 
reflations of the Department of Commerce and Labor. 



SPEECH OF HON. W. E. TAFT. 7 

The Democratic Proposed Classification. 

The Democratic platform suggests a requirement that cor- 
porations in interstate trade having- control of 25 per cent of 
the products in which they deal shall cake out a Federal 
license. This classification would probably include a great many 
small corporations engaged in the manufacture of special arti- 
cles or commodities whose total value is so inconsiderable that 
they are not really within the purview or real intent of the anti- 
trust law. 

It is not now necessary, however, to discuss the relative merit 
of such propositions, but it is enough merely to affirm the ne- 
cessity for some method by which greater executive super- 
vision can be given to the Federal Government over those busi- 
nesses in which there is a temptation to violations of the anti- 
trust law. 

Construction of Anti-Trust Law — Possible Necessity for 

9 Amendment, 

The possible operation of the anti-trust law under existing 
rulings of the Supreme Court has given rise to suggestions for 
its necessary amendment to prevent its application to cases 
which it is believed were never in the contemplation of the 
framers of the statute. Take two instances : A merchant or 
manufacturer engaged in a legitimate business that covered 
certain states wishes to sell his business and his good-will, and 
so in the terms of the sale obligates Kim serf 1 to ihe purehn: -■<•;• 
not to go into the same business in those states. Such a 
restraint of trade has always been enforced at common Law. 
Again, the employees of an interstate railway combine and enter 
upon a peaceable and lawful strike to secure better wages. At 
common law this was not a restraint of trade or commerce or 
a violation of the rights of the company or of the public. Nei'tlier 
case ought to be made a violation of the anti-tr»ist law. V ; 
own impression is that the Supreme Court would hold that 
neither of these instances is within its inhibition, but, if tn'ey 
are to be so regarded, general legislation amending the law is 
necessary. 

Democratic Plank to Limit Corporations to Ownership of 
Fifty Per Cent of Plant and Product Faulty. 

The suggestion of the Democratic platform that trusts b< 
ended by forbidding corporations to hold more than o() |n-i 
cent of the plant in any line of manufaelure is made with • I 
regard to the possibility of enforcement or the real evil ki 
trusts. A corporation controlling 45 or ."><) per cent of the :■ 
ucts may by well-known methods frequently e fleet iuou.-m \ 
and stamp out competition in a part of the eouutry as i 
pletely as if it controlled 60 or 70 per cent thereof. 



• SPEECH OF HON. W. H. TAFT. 

Compulsory Sale of Products at Fixert Price Impracticable. 

The proposal to compel every corporation to* sell its commodi- 
ties at the same price the Country over, allowing- for transporta- 
tion, is utterly impracticable. It it can be shown that in order to 
drive out competition a corporation owning a large part of the 
plant producing- an article is selling in one part of the country 
where it has competitors, at a low and unprofitable price, and in 
another part of the country, where it has none, at an exorbitant 
price, this is evidence that it is attempting an unlawful mo- 
nopoly, and justif.es conviction under the anti-trust law ; but the 
proposal to supervise the business of corporations in such a 
way as to fix the price of commodities and compel the sale at 
such price is as absurd and socialistic a plank as was ever 
inserted in a Democratic political platform. 

Difference Between Republican, and Democratic Policies and 

Platforms; Former Progressive and Regulative; Latter 

Radical and Destructive. * 

The chief difference between the Republican and the Demo- 
cratic platforms is the difference which has heretofore been seen 
between the policies of Mr. Roosevelt and those which have been 
:lvocated by the Democratic candidate, Mr. Bryan. Mr. Roose- 
in,ys policies have been progressive and regulative; Mr. Bryan's 
as tructive. Mr. Roosevelt has favored regulation of the busi- 
tjs si-dn which evils have grown up so as to stamp out the 
cies o>uid permit the business to continue. The tendency of 
of th- , an's proposals have generally been destructive of the busi- 
:th respect to which he is demanding reform. Mr. Roose- 
velt would compel the trusts to conduct their business in a law- 
ful manner and secure the benefits of their operation and the 
maintenance of the prosperity of the country, of which they 
ire an important part ; while Mr. Brj^an would extirpate and 
Vstroy the entire business in order to stamp out the evils which 
Jiey have practiced. 

Advantage of Combination of Capital. 

The conibination of capital in large plants to manufacture 
goods with the greatest economy is just as necessary as the 
assembling ©f the parts of a machine to the economical and 
more rapid manufacture of what in old times was made by 
hand. The government should not interfere with one any more 
than the other, when such aggregations of capital are legiti- 
mate and are property controlled, for they are then the natural 
results of modern enterprise and are beneficial to the public. 
In the proper operation of competition the public will soon 
share with the manufacturer the advantage in economy of 
operation and lower prices. 



SPEECH OF HON. W. H. TAFT. t 

What Is an Unlawful Trust? 

When, however, such combinations are not based on any 
economic principle, but are made merely for the purpose of con- 
trolling- the market, to maintain or raise prices, restrict out- 
put and drive out competitors, the public derives no benefit 
and we have a monopoly. There must be some use by the com- 
pany of the comparatively great size of its capital and plant and 
extent of its output, either to coerce persons to buy of it rather 
than of some competitor or to coerce those who would com- 
pete with it to give up their business. There must usually, 
in other words., be shown an element of duress in the con- 
duct of its business toward the customers in the trade and 
its competitors before mere aggregation of capital or plant be- 
comes an unlawful monopoly. It is perfectly conceivable that 
in the interest of economy of production a great number of 
plants may be legitimately assembled under the ownership of 
one corporation. It is important, therefore, that such large 
aggregations of capital and combination should be controlled, 
so that the public may have the advantage of reasonable prices 
and that the avenues of enterprise may be kept open to ike 
individual and the smaller corporation wishing to engage in 
business. 

a 
Mere Aggregation of Capital Not a Violation of Anti-Tiro 

Law. •?. 

the 
In a country like this, where, in good times, there if 

enormous floating capital awaiting investment, the period' 
fore which effective competition by construction of new 
can be introduced into any business is comparatively J 
rarely exceeding a year, and is usually even less than that. Ex- 
istence of actual plant is not, therefore, necessary to potential 
competition. Many enterprises have been organized on the 
theory that mere aggregation of all, or nearly all, existing 
plants in a line of manufacture, without regard to economy 
of production, destroys competition. They have, most of them, 
gone into bankruptcy. Competition in a profitable business 
will not be affected by the mere aggregation of many existing 
plants under one company, unless the company thereby effects 
great economy, the benefit of which it shares with the public, 
or takes some illegal method to avoid competition and to per- 
petuate a hold on the business. 

Proper Treatment of Trusts. 

Unlawful trusts should be restrained with all the efficiency 
of injunctive process, and the persons engaged in maintaining 
them should be punished with all the severity of criminal prose- 
cution, in order that the methods pursued in the operation 
of their business shall be brought within the law. To destroy 
them and to eliminate the wealth they represent from the pro- 



10 SPEECH OF HON. W. H. TAFT. 

ducing capital of the country would entail enormous loss and 
would throw out of employment myriads of working-men and 
working-women. Such a result is wholly unnecessary to the ac- 
complishment of the needed reform, and will inflict upon the 
innocent far greater punishment than upon the guilty. 

Destructive Policy of Democratic Platform. 

The Democratic platform does not propose to destroy the 
plants of the trusts physically, but it proposes to do the same 
thing in a different way. The business of this country is largely 
dependent on a protective system of tariffs. The business done 
by many of the so-called "trusts," is protected with the other 
businesses of the country. The Democratic platform proposes 
to take off the tariff on all articles coming into competition 
with those produced by the so-called "trusts," and to put them 
on the free list. If such a course would be utterly destructive 
of their business, as is intended, it would not only destroy 
the trusts, but all of their smaller competitors. The ruthless 
and impracticable character of the proposition grows plainer 
as its effects upon the whole community are realized. 

Effect of Democratic Plans on Business. 

To take the course suggested by the Democratic platform 
in these matters is to involve the entire community, innocent 
as it is, in the punishment of the guilty, while our policy is 
to si^amp out the specific evil. This difference between the poli- 
cies of the two great parties is of especial importance in view 
of the present condition of business. After ten years of the 
most remarkable material development and prosperity, there 
came a financial stringency, a panic, and an industrial depression. 
Ibis was brought about not only by the enormous expansion 
of business plants and business investments which could not 
be readily converted, but also by the waste of capital, in ex- 
travagance of living, in wars and other catastrophes. The free 
convertible capital was exhausted. In addition to this, the con- 
fidence of the lending public in Europe and in this country 
had been affected by the revelations of irregularity, breaches 
of trust, overissues of stock, violations of law, and lack of rigid 
State or National supervision in the management of our largest 
corporations. Investors withheld what loanable capital re- 
mained available. It became impossible for the soundest rail- 
roads and other enterprises to borrow money enough for new 
construction or reconstruction. 

Will Delay Restoration of Prosperity. 

Cr<idually business is acquiring a healthier tone. Gradually 
all wealth which was hoarded is coming out to be used. Con- 
fidence in security of business investments is a plant of slow 
growth and is absolutely necessary in order that our factories 



SPEECH OF HOX. W. H. TAFT. 11 

may all open again, in order that our unemployed may become 
employed, and in order that we may again have the prosperity 
which blessed us for ten years. The identity of the interests 
of the capitalist, the farmer, the business man. and the wage- 
earner in the security and profit of investments cannot be too 
greatly emphasized. I submit to those most interested, to wage- 
earners, to farmers, and to business men. whether the intro- 
duction into power of the Democratic party, with Mr. Bryan 
at its head, and with the business destruction that it openly 
advocates as a remedy for present evils, will bring about the 
needed confidence for the restoration of prosperity. 

Republican Doctrine of Protection. 

The Republican doctrine of protection, as definitely announced 
by the Eepublican convention of this year and by previous con- 
ventions, is that a tariff shall be imposed ' on all imported 
products, whether of the factory, farm, or mine, sufficiently 
great to equal the difference between the cost of production 
abroad and at home, and that this difference should, of course, 
include the difference between the higher wages paid in this 
country and the wages paid abroad and embrace a reasonable 
profit to the American producer. A system of protection thus 
adopted and put in force has led to the establishment of a rate 
of wages here that has greatly enhanced the standard of living 
of the laboring man. It is the policy of the Republican party 
permanently to continue that standard of living. In 1897 the 
Dingley tariff bill was passed, under which we have had. as 
already said, a period of enormous prosperity. 

Necessity for Revision of Tariff. 

The consequent material development has greatly changed 
the conditions under which many articles described by the sched- 
ules of the tariff are now produced. The tariff in a number 
of the schedules exceeds the difference between the cost of pro- 
duction of such articles abroad and at home, including a reason- 
able profit to the American producer. The excess over that 
difference serves no useful purpose, but offers a temptation 
to those who would monopolize tbe production and the sale of 
such articles in this country to profit by the excessive rate. 
On the other hand, there are some few other schedules in which 
the tariff is not sufficiently high to give the measure of pro- 
tection which they should receive upon Republican principles. 
and as to those the tariff should be raised. A revision of the 
tariff undertaken upon this principle, which is at the basis 
of our prescm business system, begun promptly upon the in- 
coming of the new administration and considered at a special 
session with the preliminary investigations already begun by 
the appropriate committees of the House and Senate, will make 
the disturbance of business incident to such a change as littl« 
as possible. 



It SPEECH OF HON. W. H. TAFT. 

Democratic Tariff Plan and Its Bad Effect on Business 
Conditions. 

The Democratic party in its platform has not had the cour- 
age of its previous convictions on the subject of the tariff, de- 
nounced by it in 1904 as a system of the robbery of the many 
for the benefit of the few, but it does declare its intention to 
change the tariff with a view to reaching a revenue basis and 
thus to depart from the protective system. The introduction into 
power of a party with this avowed purpose cannot but halt 
the gradual recovery from our recent financial depression and 
produce business disaster compared with which our recent panic 
and depression will seem small indeed. 

The Farmer and the Republican Party. 

As the Republican platform says, the welfare of the farmer 
is vital to that of the whole country. One of the strongest hopes 
of returning prosperity is based on the business which his crops 
are to afford. He is vitally interested in the restraining of 
excessive and unduly discriminating railroad rates, in the en- 
forcement of the pure food laws, in the promotion of scientific 
agriculture, and in increasing the comforts of country life, 
as by the extension of free rural delivery. The policies of the 
present administration, which have most industriously promoted 
all these objects, cannot fail to commend themselves to his 
#] :>*oval; and it it difficult to see how with his intelligent 
a reciation of the threat to business prosperity involved in 
democratic success at the polls he can do otherwise than give 
his full and hearty support to the continuation of the policies 
of the present administration under Eepublican auspices. 

Labor und What the Republican- Party Has Done for It. 

We come now to the question of labor. One important phase 
of the policies of the present administration has been an anxiety 
to secure for the weage-earner an equality of opportunity and 
such positive statutory protection as shall place him on a level 
in dealing with his employer. The Republican party has passed 
an employers' liability act for interstate railroads, and has 
established an eight-hour law for government employees and 
on government construction. The essence of the reform effected 
by the former is the abolition of the fellow-servant rule and 
the introduction of the comparative negligence theory by which 
an employee injured in the service of his employer does not 
lose all his right to recover because of slight negligence on 
his part. Then there is the act providing for compensation 
for injury to government employees, together with the various 
statutes requiring safety appliances upon interstate commerce 
railroads for the protection of their employees, and limiting 
the hours of their employment. These are all instances of the 



SPEECH OF HON. W. H. TAFT. 13 

desire of the Republican party to do justice to the wage-earner. 
Doubtless a more comprehensive measure for compensation of 
government employees will be adopted in the future; the prin- 
ciple in such cases has been recognized, and in the necessarily 
somewhat slow course of legislation will be more fully embodied 
in definite statutes. 

Interests of Employer and Employee Only Differ in Respect 
to Terms of Employment. 

The interests of the employer and the employee never differ 
except when it comes to a division of the joint profit of 
labor and capital into dividends and wages. This must be a 
constant source of periodical discussion between the employer 
and the employee, as indeed are the other terms of the employ- 
ment. 

Advantage of Union. 

To give to employees their proper position in such a con- 
troversy, to enable them to maintain themselves against em- 
ployers having great capital, they may well unite, because in 
union there is strength, and without it each individual laborer 
and employee would be helpless. The promotion of industrial 
peace through the instrumentality of the trade agreement is 
often one of the results of such union when intelligently con- 
ducted. 

Other Labor. 

There is a large body of laborers, however, skilled andj. un- 
skilled, who are not organized into unions. Their rights be, re 
the law are exactly the same as those of the union men, and a*e 
to be protected with the same care and watchfulness. 

Rights of Labor. 
In order to induce their employer into a compliance with 
their request for changed terms of employment, workmen have 
the right to strike in a body. They have a right to use such 
persuasion as they may, provided it does not reach the point 
of duress, to lead their reluctant co-laborers to join them in 
their union against their' employer, and they have a right, if 
the3 r choose, to accumulate funds to support those engaged in 
a strike, to delegate to officers the power to direct the action 
of the union, and to withdraw themselves and their associates 
from dealing with or giving custom to those with whom they 
are in controversy. 

What Labor Cannot Lawfully Do. 

What thej" have not the right to do is to injure their em- 
ployers' property, to injure their employers' business by use 
of threats or methods of physical duress against those who 
would work for him, or deal with him, or by carrying on what 
is sometimes known as a secondarj boycott against his cus- 
tomers or those with whom he deals in business. All those 



14 SPEECH OF HON. W. H. TAFT. 

who sympathize with them may unite to aid them in their 
struggle, but they may not through the instrumentality of a 
threatened or actual boycott compel third persons against their 
will and having no interest in their controversy to come to 
their assistance. These principles have for a great many years 
been settled by the courts of this country. 

Threatened unlawful injuries to business, like those described 
above, can only be adequately remedied by an injunction to pre- 
vent them. The jurisdiction of a court of equity to enjoin in 
such cases arises from the character of the injury and the 
method of inflicting it and the fact that suit for damages 
offers no adequate remedy. The unlawful injury is not usually 
done by one single act, which might be adequately compen- 
sated for in damages by a suit at law, but it is the result of 
a constantly recurring series of acts, each of which in itself 
might not constitute a substantial injury or make a suit at 
law worth while, and all of which would require a multiplicity 
of suits at law. ^Injuries of this class have since the foundation 
of courts of equity been prevented by injunction. 

It has been claimed that injunctions do not issue to protect 
anything but property rights, and that business is not a prop- 
erty right ; but such a proposition is wholly inconsistent with 
all the decisions of the courts. The Supreme Court of the 
United States says that the injunction is a remedy to protect 
property or rights of a pecuniary nature, and we may well 
submit to the considerate judgment of all laymen whether 
the rig-lit of a man in his business is not as distinctly a right 
of a pecuniary nature as the right to his horse or his house 
or the stock of goods on his shelf ; and the instances in which 
injunctions to protect business have been upheld by all courts 
are so man,y that it is futile further to discuss the proposition. 

It is difficult to tell the meaning of the Democratic plat- 
form upon this subject. It says : 

"Questions of judicial practice have arisen especially in con- 
nection with industrial disputes. We deem that the parties 
to all judicial proceedings should be* treated with rigid im par- 
tiality, and that injunctions should not be issued in any cases 
in which injunctions would not issue if no industrial dispute 
were involved." 

This declaration is disingenuous. It seems to have been loosely 
drawn with the especial purpose of rendering it susceptible 
to one interpretation by one set of men and to a diametrically 
opposite interpretation by another. It does not aver that in- 
junctions should not issue in industrial disputes, but only that 
they should not issue merely because they are industrial dis- 
putes, and yet those responsible for the declaration must have 
known that no one has ever maintained that the fact that a 
dispute was industrial gave any basis for issuing an injunction 
in reference thereto. 



SPEECH OF HON. W. H. TAFT. 15 

The declaration seems to be drawn in its present vague 
and ambiguous shape in order to persuade some people that it 
is a declaration against the issuing of injunctions in any indus- 
trial dispute, while at the same time it may be possible to explain 
to the average plain citizen who objects to class distinctions that 
no such intention exists at all. Our position is clear and un- 
equivocal. We are anxious to prevent even an appearance of 
any injustice to labor in the issuance of injunctions, not in a 
spirit of favoritism to one set of our fellow citizens, but of 
justice to all of our fellow citizens. The reason for exercising 
or refusing- to exercise the power of injunction must be found 
in the character of the unlawful injury and not in the char- 
acter or class of the persons who inflict this injury. 

The man who has a business which is being unlawfully in- 
jured is entitled to the remedies which the law has always given 
him, no matter who has inflicted the injuries. Otherwise we 
shall have class legislation unjust in principle and likely to sap 
the foundations of a free government. 

Notice and Hearing- Before Injunction. 

1 come now to the question of notice before issuing an in- 
junction. It is a fundamental rule of general jurisprudence that 
no man shall be affected by a judicial proceeding without notice 
and hearing. This rule, however, has some times had an ex- 
ception in the issuing of temporary restraining orders com- 
manding a defendant in effect to maintain the status quo until 
a hearing. Such a process should issue only in rare cases 
where the threatened change of the status quo would inflict 
irreparable injury if time were taken to give notice and a 
summary hearing. The unlawful injury usual in industrial 
disputes, such as I have described, does not become formi- 
dable except after sufficient time in which to give the defendants 
notice and a hearing. I do not mean to say that there may 
not be cases even in industrial disputes where a restraining 
order might properly be issued without notice, but. generally, 
1 think it is otherwise. In some State courts, and in fewer Fed- 
eral courts, the practice of issuing a temporary restraining order 
without notice merely to preserve the status quo on the theory 
t hat it won't hurt anybody has been too common. Many of us recall 
(hat the practice has been pursued in other than industrial dis- 
putes, as for instance in corporate and stock controversies, like 
those over the Erie railroad, in which a stay order without notice 
was regarded as a step of great advantage to the one who secured 
it, and a corresponding disadvantage to the one against whom it 
was secured. Indeed, the chances of doing injustice on an cx- 
parte application are much increased over those when a hear- 
ing is granted, and there may be circumstances under which 
it may affect the defendant to his detriment. In the case of 



16 SPEECH OF HON. W. H. TAFT. 

a lawful strike the sending- of a formidable document restraining 1 
a number of defendants from doing- a great many different things 
which the plaintiff avers they are threatening to do often so dis- 
courages men, always reluctant to go into a strike, from con- 
tinuing what is their lawful right. This has made the laboring 
man feel that an injustice is done in the isuing of a 
writ without notice. I conceive that in the treatment of this 
question it is the duty of the citizen and the legislator to 
view the subject from the standpoint of the man who believes 
himself to be unjustly treated, as well as from that of the 
community at large. I have suggested the remedy of returning 
in such cases to the original practice under the old statute of 
the United States and the rules in equity adopted by the Su- 
preme Court, which did not permit the issuing of an injunction 
without notice. In this respect the Republican convention has 
adopted another remedy, that, without going so far, promises 
to be efficacious in securing proper consideration in such cases 
by courts by formulating into a legislative act the, best present 
practice. 

Under this recommendation, a statute may be framed which 
shall define with considerable particularity and emphasize the 
exceptional character of the cases in which restraining orders 
may issue without notice, and which shall also provide that when 
they are issued they shall cease to be operative beyond a short 
period, during which time notice shall be served and a hearing 
had unless the defendant desires a postponement of the hear- 
ing. By this provision the injustice which has sometimes oc- 
curred by which a preliminary restraining order of widest ap- 
plication has been issued without notice, and the hearing of the 
motion for the injunction has been fixed w-eeks and months 
after its date, could not recur. 

Small Number of Cases Furnishing Grounds for Complaint 
In Federal Court. 

The number of instances in which restraining orders without 
notice in industrial disputes have issued by Federal courts is 
small, and it is urged that they do not therefore constitute an 
evil to be remedied by statutory amendment. The small number 
of cases complained of above shows the careful manner in which 
most Federal judges have exercised the jurisdiction, but the 
belief that such cases are numerous has been so widespread 
and has aroused such feeling of injustice that more definite 
specification in procedure to prevent recurrence of them is justi- 
fied if it can be effected without injury to the administration 
of the law. 

No Provision in Democratic Platform as to Notice; Only 
Recommendation Trial by Jury. 

With respect to notice, the Democratic platform contains 

no recommendation. Its only intelligible declaration in regard 



SPEECH OF HON. W. E. TAFT. 17 

to injunction suits is a reiteration of the plank in the platform 
of 1896 and 1904 providing- that in prosecutions for con- 
tempt in Federal courts, where the violation of the order con- 
stituting the contempt charge is indirect, i. e., outside of the 
presence of the court there shall be a jury trial. 

Daagerons Attack on Pswer of Courts. 

This provision in the platform of 1896 was regarded then as 
a most dangerons attack upon the power of the courts to en- 
force their ord(«s and decrees, and it wag one of the chief reasons 
for the defeat of the Democratic party in that contest, as it 
ought to have been. The extended operation of such a pro- 
vision to weaken the power of the courts in the enforcement 
of their lawful orders can hardly be overstated. 

Effect of Jury Trial. 

Under such a provision a recalcitrant witness who refuses 
to obey a subpoena may insist on a jury trial before the court 
can determine that he received the subpoena. A citizen sum- 
moned as a juror and refusing to obey the writ when brought 
into court must be tried by another jurj r to determine whether 
he got the summons. Such a provision applies not alone to in- 
junctions, but to ever}- order which the court issues against 
persons. A suit may be tried in the court of first instance and 
carried to the court of appeals and thence to the Supreme 
Court, and a judgment and decree entered and an order issued, 
and then if the decree involves the defendants' doing any- 
thing- or not doing anything, and he disobeys it, the plaintiff, 
who has pursued his remedies in lawful course for years, must, 
to secure his rights, undergo the uncertainties and delays of a 
jury trial before he can enjoy that which is his right by the 
decision of the highest court of the land. I say without hesi- 
tation that such a change would greatly impair the indispensable 
power and authority of the courts. In securing to the public the 
benefits of the new statutes enacted in the present administra- 
tion the ultimate instrumentality to be resorted to is the courts 
of the United States. If now their authority is to be weakened 
in a manner never known in the history of the jurisprudence 
of England or America, except in the Constitution of Oklahoma, 
how can we expect that such statutes will have efficient en- 
forcement? Those who advocate this intervention of a jury 
in such cases seem to suppose that this change in some way 
will inure only to the benefit of the poor wovkingman. As a 
matter of fact, the person who will secure chief advantage 
from it is the wealthy and unscrupulous defendant, able to 
employ astute and cunning counsel and anxious to avoid jus- 
tice. 

I have been willing, in order to avoid a popular but unfounded 
2 



18 SPEECH OF HON. W. H. TAFT. 

impression that a judge, in punishing for contempt of his own 
order, may be affected by personal feeling, to. approve a law 
which should enable the contemnor upon his application to 
have another judge sit to hear the charge of contempt, but 
this, with so many judges as there are available in the Federal 
courts WT>uld not constitute a delay in the enforcement of the 
process. The character and efficiency of the trial would be the 
same. It is the nature and the delay of a jury trial in such 
cases that those who would w T ish to defy the order of the court 
would rely upon as a reason for doing so. 

Maintenance of Fall Power of Courts Necessary to Avoid 

Anarchy. 

The administration of justice lies at the foundation of gov- 
ernment. The maintenance of the authority of the courts is 
essential unless we are prepared to embrace anarchy. Never 
in the history of the country has there been such an insidious 
attack upon the judicial system as the proposal to interject a 
jury trial between all orders of the court made after full hear- 
ing and the enforcement of such orders. 

The Currency System. 

The late panic disclosed a lack of elasticity in our financial 
system. This has been provisionally met by an act of the pres- 
ent Congress permitting the issue of additional emergency bank 
notes, and insuring their withdrawal when the emergency has 
passed by a high rate of taxation. It is drawn in conformity 
with the present system of bank-note currency, but varies from 
it in certain respects by authorizing the use of commercial paper 
and bonds of good credit, as well as United States bonds, as 
security for its redemption. It is expressly but a temporary 
measure and contains a provision for the appointment of a 
currency commission to devise and recommend a new and re- 
formed system of currency. This inadequacy of our present 
currency system, due to changed conditions and enormous ex- 
pansion, is generally recognized. The Republican platform well 
states that we must have a "more elastic and adaptable system 
to meet the requirements of agriculturists, manufacturers, mer- 
chants, and business men generally, must be automatic in op- 
eration, recognizing the fluctuations in interest rates," in 
which every dollar shall be as good as gold and which shall 
prevent rather than aid financial stringency in bringing on a 
panic. 

Postal Savings Bank: and Its Advantages. 

In addition to this, the Republican platform recommends the 
adoption of a postal savings bank system in which, of course, the 
Coverniiiciit would become responsible to the depositors for the 
payment of principal and interest. It is thought that the gov- 
ernment guaranty will bring out of hoarding places much money 



SPEECH OF HON. W. H. TAFT. 19 

which may be turned into wealth-producing- capital, and that it 
will be a great incentive for thrift in the many small places in 
the country having- now no savings bank facilities which art* 
reached by the Post Office Department. It will bring to every 
one, however remote from financial centers, a place of perfect 
safety for deposits, with interest return. The bill now pending 
in Congress, which, of course, the Republican convention had in 
mind, provides for the investment of the money deposited in 
national banks in the very places in which it is gathered, or as 
near thereto as may be practicable. This is an answer to the 
criticism contained in the Democratic platform that under the 
system the money gathered in the country will be deposited in 
Wall street banks. The system of postal savings hanks has been 
tried hi so many countries successfully that it cannot be re- 
garded longer as a new and untried experiment. 

Objections to Democratic Proposal to Enforce Insurance of 
Bank Deposits. 

The Democratic platform recommends a tax upon national 
banks and upon such State banks as may come in, in the nature 
of enforced insurance, to raise a guaranty fund to pay the de- 
positors of airy bank which fails. How State banks can he in- 
cluded in such a scheme under the Constitution is left in the 
twilight zone of State's rights and federalism so frequently dim- 
ming the meaning and purpose of the promises of the platform. 
If they come in under such a system, they must necessarily he 
brought within the closest national control, and so they must 
really cease to be State banks and become national banks. 

The proposition is to tax the honest and prudent banker to 
make up for the dishonesty and imprudence of others. No one 
can foresee the burden which under this system would be imposed 
upon the sound and conservative bankers of the country by this 
obligation to make good the losses caused by the reckless, specu- 
lative and dishonest men who would be enabled to secure de- 
posits under such a system on the faith of the proposed insur- 
ance ; as in its present shape the proposal would remove all safe- 
guards against recklessness in banking, and the chief, and in 
the end probably the only, benefit would accrue to the speculator. 
who would be delighted to enter the banking business when it 
was certain that he could enjoy any profit that would accrue, 
while the risk would have to be assumed hy his honest and 
hard-working fellow. In short, the proposal is wholly impracti- 
cable unlesss it is to be accompanied hy a complete revolution 
in our banking system, with a supervision so close as practically 
to create a government bank. If the proposal were adopted ex- 
actly as the Democratic platform suggests it would bring the 
whole hanking system of the country down in ruin', and this 
proposal is itself an excellent illustration of the litnesss for na- 



20 SPEECH OF HON. W. H. TAFT. 

tional control of a party which will commit itself to a scheme 
of this nature without the slightest sense of responsibility for 
the practical operation of the law proposed. 

Postal Savings Banks Much to be Preferred. 

The Democratic party announces its adhesion to this pk 
and only recommends the tried system of postal savings banks 
as an alternative if the new experimental panacea is not avail- 
able. The Republican party prefers the postal savings banks as 
one tried, safe and known to be effective, and as reaching many 
more people now without banking facilities than the new 7 system 
proposed. 

Voluntary Plan for Guaranty. 
A plan for a guaranty of deposits by the voluntary act of 
the banks involved has been favorably reported to the House of 
Representatives. This is, of course, entirely different from the 
scheme in the Democratic platform, omitting, as it does, the feat- 
ures of compulsory participation. This proposition will unques- 
tionably receive the thoughtful consideration of the national 
monetary commission. 

Republican Policies as to Dependencies. 

The Republican party has pursued consistently the policy 
originally adopted with respect to the dependencies which came 
to us as the result of the Spanish war. 

Porto Rico. 

The material prosperity of Porto Rico and the progress of its 
inhabitants toward better conditions in respect to comfort of liv- 
ing and education should make every American proud that this 
nation has been an efficient instrument in bringing happiness to 
a million people. 

Cuba. 

In Cuba the provisional government established in order to 
prevent a blood}'' revolution has so administered affairs and initi- 
ated the necessary laws as to make it possible to turn back the 
island to the lawfully elected officers of the Republic in February 
next. 

Philippines. 

In the Philippines the experiment of a national assembly has 
justified itself, both as an assistance in the government of the 
islands and as an education in the practice of self-government 
to the people of the islands. We have established a government 
with effective and honest executive departments, and a clean and 
fearless administration of justice ; w T e have created and are 
maintaining a comprehensive school system which is educating 
the youth of the islands in English and in industrial branches; 
we have constructed great government public works, roads and 



8PEBCH OF HON. W. E. TAFT. SI 

harbors ; we have induced the private construction of eight hun- 
dred miles of railroads ; we have policed the islands so that their 
condition as to law and order is better now than it ever has been 
in their history. It is quite unlikely that the people, because of 
the dense ignorance of 90 per cent, will be ready for complete 
self-government and independence before two generations have 
passed, but the policy of increasing partial self-government step 
by step as the people shall show themselves fit for it should be 
-continued. 

Proposition of Democratic Platform Means Chaos. 

The proposition of the Democratic platform is to turn over 
the islands as soon as a stable government is established. This 
has been established. The proposal then is in effect to turn them 
over at once. Such action will lead to ultimate chaos in the 
islands and the progress among the ignorant masses in edu- 
cation and better living will stop. We are engaged in the Philip- 
pines in a great missionary work, that does our nation honor, 
and is certain to promote in a most effective way the influence 
of Christian civilization. It is cowardly to lay down the burden 
until our purpose is achieved. 

Hope of Prosperity in Change in Tariff Recommended by 
Republican Platform. 

Many unfortunate circumstances beyond human control have 
delayed the coming of business prosperity to the islands. Much 
may be done in this regard by increasing the trade between the 
islands and the United States, under tariff laws permitting re- 
ciprocal free trade in the respective products of the two coun- 
tries, with such limitations as to sugar and tobacco imported 
into the United States as will protect domestic interests. The 
admission of 350,000 tons of sugar from the Philippine Islands 
in a foreign importation of 1,600,000 tons will have no effect 
whatever upon the domestic sugar interests of the United States, 
and yet such an importation from the Philippine Islands, not 
likely to be reached in ten years, will bring about the normal 
state of prosperity in these islands in reference to sugar culture. 

The same thing is true of a similar limitation on the impor- 
tation of tobacco. It is not well for the Philippines to develop 
the sugar industry to such a point that the business of the 
islands shall be absorbed by it, because it makes a society in 
which there are wealthy landowners, holding very large estates, 
with valuable and expensive plants and a large population of un- 
skilled labor. In such a community there is no farming or mid- 
dle class tending to build up a conservative, self-respecting com- 
munity capable of self-government. There are many other prod- 
ucts, notably that of Manila hemp, to which the energy of the 
islands can be and is being directed, the cultivation of which de- 
velops the olass of small and intelligent farmers. 



22 SPEECH OF HON. W. H. TAFT. 

Misconception as to Annual Cost of Philippines. 

One misconception of fact with respect to our Philippine 
policy is that it is costing the people of the United States a 
vast annual sum. The expenses of the war in the Philippines 
from 1898 to 1902 involved the government in an expenditure of 
less than $175,000,000. This was incident to war. The fact is 
that since the close of the war in 1902 and the restoration of or- 
aer in the islands the extra cost of the American troops of the 
regular army in the islands, together with that of maintaining 
about 4. 000 Philippine scouts as a part of the regular army, does 
not exceed $6,000,000 annually. This is all the expense to whicti 
the United States has been put for five or six years last past. 
The expenses of the civil government in the islands since its es- 
tablishment have been met entirely from the proceeds of taxes 
collected in the islands, with but one notably generous and 
commendable exception, when the Congress of the United States 
appropriated $3,000,000 in 1902 to relieve the inhabitants of the 
islands from the dangers of famine, and distress caused by the 
death from rinderpest of three-fourths of the cattle of the 
islands. 

Veterans of Country's Wars. 

Poth platforms declare, as they should, in favor of generous 
pensions for the veterans of the civil and Spanish wars. I stop 
to note the presence here of a body of veterans of Ohio, and to 
express my thanks for the honor they do me in coming. I am 
lacking in one qualification of all' Republican Presidents since 
Lincoin, that of having been exposed to danger and death on the 
field of battle in defense of our country. I hope that this lack 
will not make the veterans think I am any less deeply thrilled 
by the memory of their great comrades gone before — Grant, 
Hayes, Garfield, Harrison and McKinley, all sons of Ohio, who 
left records reflecting glory upon their State and nation — or that 
my sympathies with the valor and courage and patriotism of 
those who faced death in the country's crises are any less earnest 
and sincere than they would be had I the right to wear a button 
of the Grand Army or of the veteran association of any of our 
country's wars. 

The Rights and Progress of the Negro. 

The Republican platform refers to those amendments to the 
Constitution that Were passed by the Republican party for the 
protection of the negro. The negro, in the forty years since he 
was freed from slavery, has made remarkable progress. He is 
becoming a more and more valuable member of the communities 
in which he lives. The education of the negro is being expanded 
and improved in every way. The best men of both races, at the 
North as well as at the South, ought to rejoice to see growing up 
among the Southern people an influential element disposed to 



SPEECH OF noy. W. H. TAFT. M 

encourage the negro in his hard struggle for industrial inde- 
pendence and assured political status. The Republican platform, 
adopted at Chicago, explicitly demands justice for all men with- 
out regard to race or color, and just as explicitly declares for 
the enforcement, and without reservation' in letter and spirit, of 
the thirteenth, fourteenth, and fifteenth amendments to the Con- 
stitution. It is needless to state that I stand with my party 
squarely on that plank in the platform, and believe that equal 
justice to all men and the fair and impartial enforcement of 
these amendments are in keeping with the real American spirit 
of fair play. 

Army and Navy. 

Mr. McKinley and Mr. Roosevelt and the Republican party 
have constantly advocated a policy with respect to the army and 
navy that will keep this republic ready at all times to defend 
her territory and her doctrines, and to assure her appropriate 
part in promoting permanent tranquillity among the nations. 1 
welcome from whatever motive the change in the Democratic at- 
titude toward the maintenance and support of an adequate navy. 
and hope that in the next platform the silence of the present 
platform in respect to the army will be changed to an acqui- 
escence in its maintenance to the point of efficiency in connec- 
tion with the efficiently reorganized militia and the national vol- 
unteers, for the proper defense of the country in times of war, 
and the discharge of those duties in times of peace for which the 
army, as at present constituted, has shown itself so admirably 
adapted in the Philippines, in San Francisco, in Cuba and else- 
where. We are a world power and cannot help it, and although 
at peace with all the world and secure in the consciousness 
that the American people do not desire and will not provoke a 
war with any other country, we must be prudent and not be 
lulled into a sense of security which would possibly expose us 
to national humiliation. Our best course, therefore, is to insist 
on the constant improvement in our navy and its maintenance 
at the highest point of efficiency. 

Protection of Citizens Abroad. 

The position which our country has won under Republican ad- 
ministrations before the world should inure to the benefit of 
every one. even the humblest, of those entitled to look to the 
American flag for protection, without regard to race, creed or 
color, and whether he is a citizen of the United States or of any 
of our dependencies. In some count ries with which we are on 
friendly terms distinctions are made in respect to the treatment 
of our citizens traveling abroad and having pa-^porls of our ex- 
ecutive, based on considerations that art 1 repugnant to the prin- 
ciples of our government and civilization. The Republican party 



24 SPEECH OF HON. W. H. TAFT. 

and administration will continue to make every proper endeavor 
to secure the abolition of such distinctions, which in our eyes are 
both needless and opprobrious. 

Asiatic Immigration. 
In the matter of the limitation upon Asiatic immigration, re- 
ferred to in the Democratic platform, it is sufficient to say that 
the present Republican administration has shown itself able, by 
diplomatic negotiations and without unnecessary friction with 
self-respecting governments, to minimize the evils suggested, and 
a subsequent Republican administration may be counted on to 
continue the same policy. 

Conservation of National Resources. 

The conservation of national resources is a subject to which 
the present administration has given especial attention. The 
necessity for a comprehensive and systematic improvement of 
our waterways, the preservation of our soil and of our forests, 
the securing from private appropriation the power in navigable 
streams, the retention of the undisposed of coal lands of the Gov- 
ernment from alienation, all will properly claim from the next 
administration earnest attention and appropriate legislation. 

National Health Bnrean. 

I have long been of opinion that the various agencies of the 
national government established for the preservation of the 
national health scattered through several departments should 
be rendered more efficient by uniting them in a bureau of the 
Government under a competent head, and that I understand to be 
in effect the recommendation of both parties. 

Publicity of Campaign Contributions and Expenditures. 

Another plank of the Democratic platform refers to the fail- 
ure of the Republican convention to express an opinion in favor 
of the publicity of contributions received and expenditures made 
in elections. Here again we contrast our opponents' promises 
with our own acts. Great improvement has taken place under 
Republican auspices in respect to the collection and expenditure 
of money for this purpose. The old and pernicious system of 
levying tax on the salaries of government employees in order to 
pay the expenses of the party in control of the administration 
has been abolished by statute. By a law passed by the Republi- 
can Congress in 1907, contributions from corporations to in- 
fluence or pay the expenses connected with the election of Presi- 
dential electors or of members of Congress are forbidden under 
penalty. 

A resident of New York has been selected as treasurer of 
the Republican National Committee, who was treasurer of the 
Republican State Committee when Governor Hughes was elected 



SPEECH OF HON. W. H. TAFT. 25 

in New York, and who made a complete statement within 
twenty days after the election, as required by the New York 
law, of the contributions received by him and the expenditures 
made by him or under his authority in connection with that elec- 
tion. His residence and the discharge of his duties in the State 
of New York subject him to the law of that State as to all re- 
ceipts of the treasuiy of the national committee from whatever 
source and as to all its disbursements. His returns will be under 
the obligations and penalties of the law, and a misstatement by 
him or the filing- of a false account will subject him to prosecu- 
tion for perjury and violation of the statute. Of course, under 
the Federal law, he is not permitted to receive any contributions 
from corporations. 

If I am elected President I shall urge upon Congress, with 
every hope of success, that a law be passed requiring a filing in a 
Federal office of a statement of the contributions received by 
committees and candidates in elections for members of Congress, 
and in such other elections as are constitutionally within the 
control of Congress. Meantime the Republican party by the se- 
lection of a New York treasurer has subjected all its receipts 
and expenditures to the compulsory obligation of such a law. 

Income Tax. 
The Democratic platform demands two constitutional amend- 
ments, one providing for an income tax and the other for the 
election of Senators by the people. In my judgment an amend- 
ment to the Constitution for an income tax is not necessary. 1 
believe that an income tax, when the protective system of cus- 
toms and the internal revenue tax shall not furnish income 
enough for governmental needs, can and should be devised 
which under the decisions of the Supreme Court will conform to 
the Constitution. 

Election of Senators. 

With respect to the election of Senators by the people, per- 
sonally I am inclined to favor it, but it is hardly a party ques- 
tion. A resolution in its favor has passed a Republican House of 
Representatives several times, and has been rejected in a Re- 
publican Senate by the votes of Senators from both parties. It 
has been approved by the legislatures of many Republican States. 
In a number of States, both Democratic and Republican, substan- 
tially such a system now prevails. 

Inaccuracy nml Insincerity of Democratic Charges of Extrav- 
agance in Increase of Ofiices and Expenditures. 

Our opponents denounce the Republican party for increasing 

the number of offices 23.000, at a cost of $16,000,000, during the 

last year. Such denunciation is characteristic of the Democratic 

platform. It fails to specify in any way what the offices are, and 

leaves the inference that the increase was resisted by the repre- 



26 SPEECH OF HON. W. H. TAFT. 

sentatives of Democracy in Congress. As a matter of fact, the 
net number of offices increased was just about half the number 
stated; the increase was due chiefly to the enlargement of the 
navy, the construction of the Panama canal, the extension of the 
rural free delivery and to the new offices necessary in the en- 
forcement of the pure food meat inspection, railroad rate regu- 
lation, arid land reclamation, forest preservation -and other 
measures which Congress passed with almost unanimous popular 
approval. The Democratic platform, so far from attacking any 
of this legislation, specifically approves much and condemns none 
of it, and it is, of course, disingenuous to claim credit for ap- 
proving legislation and yet to denounce the expenditures neces- 
sary to give it effect. 

Charge of Deficit. 

Ag'ain, it charges that a deficit of sixty millions of dollars 
between the receipts and expenditures during the fiscal year 
ending June 30, 1908, occurred. As explained by the Secretary 
of the Treasury, at least half of this deficit is only an apparent 
one. The falling off in receipts was, of course, occasioned by the 
unusual panic, but there is ample free money in the Treasury to 
me/et the difference, and the difference itself is not half of it 
properly a deficit, because involved in it was the retirement of 
some thirty-three millions of the bonds of the Government. 

During the past seven years the income and expenditures of 
the Government have been nearly equal, some years showing a 
surplus and others, fewer in number, a deficit. Taking one year 
with another, including this year, there has been an average sur- 
plus. The surplus last year, for instance, was greater than the 
deficit this year ; so that, in fact, under the jn'esent administra- 
tion there has been no deficit, but a surplus which is actually in 
the Treasury. 

The Democratic platform nowhere points out the expendi- 
tures which might be reduced or avoided. It would be found 
generally that to the increases which have occurred, Democratic 
Representatives in Congress made no opposition, but rather sup- 
ported the measures providing them, and now the party has 
not the courage to indicate what part of government cost it 
would end. It joins the Republican party specifically in approv- 
ing the outlay of $150,000,000 as pensions. It expressly favors 
also the cost of greatly increased river and harbor improvements, 
the cost of doubling the navy and of many other enterprises to 
which it urges the Government. Its attack, therefore, has noth- 
ing in it of fairness or sincerity. 

Hi till Character and Efficiency of Administration. 

The truth is that it is known of all fair-minded men that 
there never has been an administration in the Government more 
efficiently conducted, more free from scandal, and in which the 



SPEECH OF HOy. W. H. TAFT. 27 

standard of official duty has been set higher than in the present 
Republican administration, which the Democratic platform has 
thus denounced. 'It has had to meet the problems arising from 
the enormous expansion of government functions under new 
legislative measures, as well as in the new dependencies, and in 
the greatest constructive work of modern times, the Panama 
canal, and its members may well feel a just pride in the excep- 
tional record for efficiency, economy, honesty and fidelity which 
it has made. We may rely upon our record in this regard in an 
appeal to the American people for their approval. 

The foreign policy of this country under the present adminis- 
tration has greatly contributed to the peace of the world. The 
important part the administration took in bringing about an 
end of the Russian- Japanese war by a treaty honorable to both 
parties- and "the prevention of wars in Central America and Cuba 
are striking- instances of this. The arbitration ti'eaties signed 
with all the important nations of the world mark a great step 
forward in the development of the usefulness of The Hague 
tribunal. The visit of Secretary Eoot to South America empha- 
sized our friendship for our sister republics, which are making 
such strides in the south hemisphere, and met with a most 
cordial and gratifying response from our Latin-American col- 
leagues. The assistance which we are rendering in Santo Do- 
mingo to enable that government to meet its obligations and 
avoid anarchy is another instance of successful work of this ad- 
nmiistration in helping our neighbors. 

This administration has. by the promptness, skill and energy 
of its negotiations, secured dominion in the Canal Zone of the 
Isthmus of Panama, without which the construction of the canal 
would have been impossible. T't has subdued the heretofore 'in- 
surmountable obstacle of disease and made the place of work 
healthy. It has created such an organization that in six years 
certainly, and probably in less, the Atlantic and Pacific will be 
united, to the everlasting benefit of the world's commerce and 
the effectiveness of our navy will be doubled. 

The mere statement of the things actually done by this ad- 
ministration at home, in our dependencies and in foreign affairs, 
Rhows a marvel of successful accomplishment, and if ever a party 
has entitled itself to the approval of its work's by a renewed man- 
date of power from the people whom it served it is the Republi- 
can party in the present campaign. 

The only respect in which nothing has been done is in the 
development of our foreign marine. As long ;ls W e uphold the 
system of protection for our home industries we must recognize 
that it is inapplicable to assist those of our citizens engaged in 
the foreign shipping business, because there is no feasible 
means of excluding foreign competition, and that the only otlu r 
method of building up such a business is by direct aid in the 



18 SPEECH OF HON. W. H. TAFT. 

form of a mail subsidy. I am in favor of the bill considered in 
the last Congress as a tentative step. The establishment of direct 
steamship lines between our Atlantic ports and South America 
would certainly do much to develop a trade that might be made 
far greater. On the Pacific the whole shipping trade threatens 
to pass into the control of Japan. Something ought to be done, 
and the bill which failed was a step in the right direction. 

Independent Democrats. 
The Democratic party under its present leadership in previous 
campaigns has manifested a willingness to embrace any doctrine 
which would win votes, with little sense of responsibility for its 
practical operation. In its striving for success it has ignored the 
business prosperity of the country, has departed from sound eco- 
nomic and governmental principles, and has reversed .its own tra- 
ditional views of constitutional construction. Patriotic members 
of the party have refused to be controlled by party ties, and have 
either refrained from voting or have supported the Eepublican 
candidate. May we not appeal to these courageous and inde- 
pendent citizens again to give us their support in this campaign, 
because the reasons for their breaking the bonds of party are 
stronger to-day than ever before? 

Length of Speech Made Necessary by Numerous Issues. 

I have now reviewed at great length the principles at issue 
between the two parties. When I began the preparation of this 
speech of acceptance I had hoped to make it much briefer than 
it is, but I found on an examination of the platform and on a con- 
sideration of the many measures passed during the present ad- 
ministration and the issues arising out of them that it was im- 
possible to deal with the subjects comprehensively with proper 
explanation and qualification in a short discussion. This is my 
excuse. 

Difference Between Parties: Prosperity With Republican 
Success; Business Disaster With Democratic Victory. 

I have pointed out that the attitude of the Republican party 

with reference to evils which have crept in, due to the enormous 

material expansion of this country, is to continue the Roosevelt 

policies of progress and regulation, while the attitude of the 

Democratic party under its present leadership is the change for 

the sake of change to the point of irresponsible destruction, and 

that there is no hope whatever of a restoration of prosperity in 

returning it to power. As said in our platform, we Republicans 

go before the country asking the support, not only of those who 

have acted with us heretofore, but of all our fellow-citizens who, 

regardless of past political differences, unite in the desire to 

maintain the policies, perpetuate the blessings, and make secure, 

the achievements of a greater America. 



PRESIDENT ROOSEVELT ENDORSES 
MR. TAFT'S CANDIDACY. 



Tells Why Mr. Taft is Especially Fitted to be a Great 

President. 



The following- letter was written by President Roose- 
velt to Mr. Conrad Kohrs, of Helena, Montana, an old-time 
cattleman and one of the most prominent citizens of his 
State. He and the President came into close relationship 
more than twenty years ago when both were members of the 
Montana Stock Growers Association, the President being at 
that time the representative of the Little Missouri Stock 
Growers in the Association. The intimacy has been kept up 
ever since. Mr.Kohrs is one of the pioneer citizens of the 
Northern Rocky Mountain region and one of the men who 
nas taken a leading part in its development. The letter which 
he wrote to the President and to which the following is a 
response was called forth by Mr. Bryan's statement that he 
(Mr. Bryan) was the President's heir and natural successor. 



Sagamore Hill, 
Oyster Bat, N. Y., September 9, 1908. 

My Dear Mr. Kohrs — I have received your letter about 
the candidacy of Mr. Taft, the man who I feel is in an es- 
pecial sense the representative of all that in which I most be- 
lieve in political life. 

Every good citizen should desire to see both prosperity 
and justice, prosperity and fair and righteous dealing as be- 
tween man and man, obtain permanently in this great Repub- 
lic. As a people we are justly proud of our business industry, 
of our energy and intelligence in our work; and it is entirely 
right that we should ask ourselves as to any given course of 
conduct, "Will it be profitable?" But it is also no less em- 
phatically true that the bulk of our people, the plain people 
who found in Abraham Lincoln their especial champion and 
spokesman regard the question, "Is this morally right?" as 
even more important than the question, "Is this profitable?" 
when applied to any given course of conduct. Indeed, in 
the long run our people are sure to find that in all dealings, 
alike in the business and the political world, what is really 

28 a 



28b MR. TAFT ENDORSED BY PRESIDENT ROOSEVELT. 

profitable is that which is morally right. The last few years 
have seen a great awakening of the public conscience and the 
growth of a stern determination to do away with corruption 
and unfair dealing, political, economic, social. It is urgent] v 
necessary that this great reform movement should go on. But 
no reform movement is healthy if it goes on bv spasms; if 
it is marked by. periods of frenzied advance, followed, as 
such periods of frenzied advance must always be followed, 
by equally violent periods of reaction. The revolutionary and 
the reactionary really play into one another's hands, to the 
extent that each by his excesses necessarily tends to arouse 
such disgust, such a feeling of revolt, in the minds of quiet 
people, as temporarily to restore the other to power. To per- 
mit the direction of our public affairs to fall alternately into 
the hands of revolutionaries and reactionaries, of the ex- 
treme radicals of unrest and of the bigoted conservatives who 
recognize no wrongs to remedy, would merely mean that the 
nation had embarked on a feverish course of violent os- 
cillation which would be fraught with great tempor- 
ary trouble, and would produce no adequate good in 
the end. The true friend of reform, the t^r.e foe 
of abuses, is the man who steadily perseveres in 
righting wrongs, in warring against abuses, but whose charac- 
ter and training are such that he never promises what he 
cannot perform, that he always a little more than makes good 
what he does promise, and that, while steadily advancing, 
he never permits himself to be led into foolish excesses which 
would damage the very cause he champions. In Mr. Taft we 
have a man who combines all of these qualities to a degree 
which no other man in our public life since the Civil war has 
surpassed. To a flaming hatred of injustice, to a scorn of all 
that is base and mean, to a hearty sympathy with the opprest, 
he unites entire disinterestedness, courage both moral and 
physical of the very highest type, and a kindly generosity 
of nature which makes him feel that all of his fellow-coun- 
trymen are in very truth his friends and brothers, that their 
interests are his, and that all his great qualities are to be 
spent with lavish freedom in their service. The honest man 
of means, the honest and law-abiding business man, can feel 
safe in his hands because of the very fact that the dishonest, 
man of great wealth, the man who swindles or robs his fel- 
lows, would not so much as dare to defend his evil-doing in 
Mr. Taft's presence. The honest wage-worker, the honest 
laboring man, the honest farmer, the honest mechanic or 
small trader, or man of small means, can feel that in a pe- 
culiar sense Mr. Taft will be his representative because of 
the very fact that lie has the same scorn for the demagogue 
that he has for the corruptionist, and that he would front 



HR. TAl'T ENDORSED BY PRESIDENT ROOSEVELT. 28c 

threats of personal violence from a mob with the unquailing 
and lofty indifference with which lie would front the bitter 
anger of the wealthiest and most powerful corporations. 
Broad though his sympathies are, there is in him not the 
slightest tinge of weakness. Xo consideration of personal 
interest, any more than of fear for his personal safety, could 
make him swerve a hair's breadth from the course which he 
regards as right in the interest of the whole people. 

I have naturally a peculiar interest in the success of 
Mr. Taft, and in seeing him backed by a majority in both 
houses of Congress which would heartily support his policies. 
For the last ten years, while I have been Governor of Xew 
York and President, I have been thrown into the closest 
intimacy with him, and he and I have on every essential 
point stood in heartiest agreement, shoulder to shoulder. AA'e 
have the same views as to what is demanded by the national 
interest and honor, both within our own borders, and as re- 
gards the relations of this nation with other nations. There 
is no fight for decency and fair dealing which I have waged 
in which I have not had his heartiest and most effective sym- 
pathy and support, and the policies for which I stand are his 
policies as much as mine. 

It is not possible in the space of this letter to discus- 
all the many and infinitely varied questions of moment with 
which Mr. Taft as President would have to deal; let him be 
judged by what he 1ms himself done, and by what the ad- 
ministration, in which he has played so conspicuous a part, 
has done. But to illustrate just what his attitude is. let 
me touch on two matters now prominent in the public mind. 

Mr. Taft can be trusted to exact justice from the rail- 
roads for the very reason that lie can be trusted to do jus- 
tice to the railroads. The railroads are the chief instruments 
of interstate commerce in the country, and they can neither 
be held to a proper accountability on the one hand nor given 
proper protection on the other, save by the affirmative action 
of the Federal Government. The law as laid down by the 
Federal courts clearly shows that the States have not and 
cannot devise laws adequate to meet the problems caused by 
the great growth of the railroads doing an interstate com- 
merce business, for more than four-fifths of the busines 
the railroads is interstate, and under the Constitution of 
the United States only the Federal Government pan exercise 
control thereover. It is absolutely necessary that this control 
should he 1 affirmative and thorough going. All interstate busi- 
ness carried on by the great corporations should, in the in- 
terest of the whole people, be far more closely supervised than 
at present by the National Government ; but this is especially 
true of the railroads, which cannot exist at all save b\ the 



28 d MR. TAFT ENDORSED BY PRESIDENT ROOSEVELT. 

exercise of powers granted them on behalf of the people, and 
which, therefore, should be held to a peculiar accountability 
to the people. It is in the interest of the people that they 
should not be permitted to do injustice; and it is no less to 
the interest of the people that they should not suffer injus- 
tice. Their prime purpose is to carry the commodities of the 
farmers and the business men; they could not be built save 
for the money contributed to them by their shareholders; 
they could not be run at all save for the money paid out in 
wages to the railroad employees; and, fianlly, they could not 
be run judiciously, or profitably to any one, were it not for | 
the employment b} 7 " them of some masterful guiding intelli- 
gence, whether of one man or of a group of men. There are 
therefore several sets of interests to be considered. Each must 
receive proper consideration, and when any one of them sel- 
fishly demands exclusive consideration the demand must be 
refused. Along certain lines all of these groups have the same 
interests. It is to the interest of shipper, farmer, wage- 
worker, business man, honest shareholder, and honest man- 
ager alike that there should be economy, honesty, intelli- 
gence, and fair treatment of all. To put an effective stop to 
stock watering would be a benefit to everybody except the 
swindlers who profit by stock-watering; it would bene- 
fit the honest shareholder because honest investments would 
not be brought into competition with mere paper; it would 
benefit the wage-worker because when the money earned does 
not have to go to paying interest on watered capital, more 
of it is left, out of which to pay wages; it would benefit the 
shipper because when only honest stockholders have to be 
paid interest, rates need not be improperly raised; it would 
benefit the public because there would be ample money with 
which to give efficient service. Similarly, the prevention 
of favoritism as among shippers doe? no damage to any one 
who is honest, and confers great good upon the smaller busi- 
ness man and the farmer, whom it relieves of oppression. 
Again, such supervision of accounts and management as will 
prevent crookedness and oppression works good, directly or 
indirectly, to all honest people. Therefore everything that 
can be done along all these lines should be done; and no. 
man's legitimate interest would thereby be hurt. But after 
this point has been reached great care must be exercised not 
to work injustice to one class in the effort to show favor to 
another class, and each class naturally tends to remember 
only its own needs. The stockholders must receive an ample 
return on their investments, or the railroads cannot be 
built and successfully maintained; and the rates to shippers 
and the wages to employees, from the highest to the lowest, 
must all be conditioned upon this fact. On the other hand, 



MR. TAFT ENDORSED BY PRESIDENT ROOSEVELT. 28 e 

in a public service corporation we have no right to allow such 
excessive profits as will necessitate rates being unduly high 
and wages unduly low. Again, while in all proper ways rates 
must be kept low, we must always remember that we have no 
right and no justification to reduce them when the result is 
the reduction of the wages of the great army of railroad men. 
A fair working arrangement must be devised according to 
the needs of the several cases, so that profits, wages and rates 
shall each be reasonable with reference to the other two — 
and in wages I include the properly large amounts which 
should always* be paid to those whose masterful ability is 
required for the successful direction of great enterprises. 
Combinations which favor such an equitable arrangement 
should themselves be favored and not forbidden by law; al- 
though they should be strictly supervised by the Government 
through the Interstate Commerce Commission, which should 
have the power of passing summarily upon not only the 
question of the reduction but the raising of rates. 

This railroad problem is itself one of the phases of one 
of the greatest and most intricate problems of our civiliza- 
tion ; for its proper solution we need not merely honesty and 
courage, but judgment, good sense, and entire fairmindedness. 
Demogogy in such a matter is as certain to work evil as 
corruption itself. The man who promises to raise the wages 
of the railroad employees to the highest point and at the 
same time to reduce rates to the lowest point is promising 
what neither he nor anyone else can perform; and if the 
effort to perform it were attempted disaster would result to 
both shipper and wage-worker, and ruin to the business 
interests of the country. The man to trust in such a matter 
as this is the man who, like Judge Taft, does not promise 
too much, but who could not be swayed from the path of duty 
by any argument, by any consideration; who will wage re- 
lentless war on the successful wrongdoer among railroad men 
as among all other men ; who will do all that can be done to 
secure legitimately low rates to shippers and absolute even- 
ness among the rates thus secured; but who will neither 
promise nor attempt to secure rates so low that the wage- 
earner would lose his earnings and the shareholder, whose 
money built the road, his profits. He will not favor a 
ruinous experiment like government ownership of railways; 
he will stand against any kind of confiscation of honest lv 
acquired property; but he will work effectively for the ftiosl 
efficient type of government supervision and control of rail- 
rays, so as to secure just and fair treatment of the people 
as a whole. 

Whflt is here said as to his attitude on the railway ques- 
n applies to the whole question of the trusts. He will 



, tion 



28 f MR. TAFT ENDORSED BY PRESIDENT ROOXEYEJ.T. 

promise nothing on this subject unless he firmly believes he 
can make his promise good. He will go into no chimerical 
movement to destroy all great business combinations; for this 
can only be done by destroying all modern business; but he 
will in practical fashion do everything possible to secure 
such efficient control, on behalf of the people as a whole, over 
these great combinations as will deprive them of the power 
to work evil. Mr. Taft's decision in the Addy stone Pipe Line 
ease while on. the bench is proof, by deeds not by words., of 
the far-sighted wisdom with which he serves the interests of 
the whole people even when those of the most powerful cor- 
porations are hostile thereto. 

Tf there is one body of men more than another whose 
support I feel I have a right to challenge on behalf of Sec- 
retary Taft it is the body of wage-workers of the country. 
A stauneher friend, a fairer and truer representative, they 
cannot find within the borders of the United States. He will 
do everything in his power for them except to do that which 
is wrong; he will do wrong for no man, and therefore can 
be trusted by all men. During the ten years of my intimate 
acquaintance with him, since I have myself, as Governor and 
Picsidcnt, been obliged to deal practically with labor prob- 
lems, he has been one of the men upon whose judgment and 
aid I conld always rely in doing everything, possible for the 
cause of the wage-worker, of the man who works with his 
hands, or with both hands and head. 

Mr. Taft has been attacked because of the injunctions 
he delivered while on the bench. I am content to rest his 
case on these very injunctions; I maintain that they show 
why all our people should be grateful to him and should feel 
it safe to entrust their dearest interests to him. Most as- 
suredly he never has yielded and never will yield to threat or 
pressure of anv sort as little if it comes from labor as if it 
comes from capital ; he will no more tolerate the violence of 
a mob than the corruption and oppression and arrogance of 
a corporation or of a wealthy man. He will not consent to 
limit the power of the courts to put a stop to wrongdoing 
wherever found. This very fact should make the labor people 
feel a peculiar confidence in him. He has incurred the 
bitter hostility of foolish and bigoted, reactionaries by his 
frank criticism of the abuse of the power of injunction in 
labor disputes, and he is pledged to do all he can to put a 
stop to the abuses in the exercise of the power of injunction. 
He will never promise anything that he will not do all in 
his power to perform. -. He can always be trusted to do a little 
better than his word, and the fact that before election he will 
not promise the impossible is in itself a guaranty that after 
election all that is possible will be done. 



MR, TAFT ENDORSED BY PRESIDENT ROOSEVELT. 28 g 

His record as a judge makes the whole country his 
debtor. His actions and decisions are part of the great tra- 
ditions of the bench. They guaranteed and set forth in 
striking fashion the rights of the general public as against 
the selfish interests of any class, whether of capitalists or 
of laborers. They set forth and stand by the rights of the 
wage-workers to organize and to strike, as unequivocally as 
they set forth and stand by the doctrine that no conduct will 
be tolerated that would spell destruction to the nation as 
a whole. As for the attack upon his injunctions in labor 
disputes, made while he was on the bench, I ask that the 
injunctions be carefully examined. I ask that every respon- 
sible and fairminded labor leader, every responsible and fair- 
minded member of a labor organization, read these injunc- 
tions for himself. If he will do so, instead of condemning 
them he will heartily approve of them and will recognize this 
further astonishing fact that the principles laid down by 
Judge Taft in these very injunctions, which laboring people 
are asked to condemn, are themselves the very principles 
which are now embodied in the laws or practices of every re- 
sponsible labor organization. ]STo responsible organization 
would now hesitate to condemn the abuses against which 
Judge Taft's injunctions were aimed. The principles which 
he therein so wisely and fearlessly laid down serve as a 
charter of liberty for all of us, for wage-workers, for em- 
ployers, for the general public; for they rest on the principles 
of fair dealing for all, of even-handed justice for all. They 
mark the judge who rendered them as standing for the 
rights of the whole people ; as far as daylight is from dark- 
ness, so far is such a judge from the time-server, the truckler 
to the mob, or the cringing tool of great, corrupt and corrupt- 
ing corporations. Judge Taft on the bench — as since, in the 
Philippines, in Panama, in Cuba, in the War Department — 
showed himself to be a wise, a fearless, and an upright ser- 
vant of the whole people, whose services to the whole people 
were beyond all price. Moreover, let all good citizens remem- 
ber that he rendered these services, not when it was easy 
to do so, but when lawless violence was threatened, when 
malice, domestic and civic disturbance threatened the whole 
fabric of our government and of civilization; his actions 
showed not only the highest kind of moral courage but of 
physical courage as well, for his life was freely and violently 
threatened. 

Let all fair-minded men, wage-workers, and capitalists 
alike, consider yet another fact. In one of his decisions upon 
the bench Judge Taft upheld in the st longest fashion, and 
for the first time gave full validity to, the principle of the 
employers' liability for injuries done workmen. This was 



»8 h MR. TAFT ENDORSED BY PRESIDENT ROOSEVELT. 

before any national law on the subject was enacted. Judge 
Taft's sense of right, his indignation against oppression in 
any. form, against any attitude that is not fair and just, 
drove him to take a position which was violently condemned 
by short-sighted capitalists and employers of labor, which 
was so far in advance of the time that it was not generally 
upheld by the State courts, but which we are now embodying 
in the law of the land. Judge Taft was a leader, a pioneer, 
while on the bench, in the effort to get justice for the wage- 
vorker, in jealous championship of his rights; an<£ all up- 
right and far-sighted laboring men should hold it to his 
credit that at the same time he fearlessly stood against the 
abuses of labor, just as he fearlessly stood against the abuses 
of capital. If elected, he has shown by his. deeds that he 
will be President of no class, but of the people as a whole; 
he can be trusted to stand stoutly against the two real 
enemies of our democracy — against the man who to please 
one class would undermine the whole foundation of orderly 
liberty and against the man who in the interest of another 
class would secure business prosperity by sacrificing ever}' 
right of the working people. 

I have striven as President to champion in every proper 
way the interests of the wage-worker; for I regard the wage- 
worker, excepting only the farmer, the tiller of the soil, as 
the man whose well-being is most essential to the healthy 
growth of this great nation. I would for no consideration 
advise the wage-worker to do what I thought was against 
his interest. I ask his support for Mr. Taft exactly as I 
ask such support from every far-sighted and right-thinking 
American citizen; because I believe with all my heart that 
nowhere within the borders of our great country can there 
be found another man who will as vigilantly and efficiently 
as Mr. Taft support the rights of the working man as he 
will the rights of every man who in good faith strives to 
do his duty as an American citizen. He will protect the 
just rights of both rich and poor, and he will war relentlessly 
against lawlessness and injustice whether exercised on be- 
half of property or of labor. 

On the bench Judge Taft showed the two qualities which 
make a great judge; wisdom and moral courage. They are 
also the two qualities which make a great President. 

Sincerely yours, 

THEODORE ROOSEVELT. 
Mr. Conrad Kohrs, 

Helena, Montana. 



PRESIDENT ROOSEVELT'S LETTER TO 
CHAIRMAN McKINLEY ON THE NE- 
CESSITY OF ELECTING A REPUBLI- 
CAN HOUSE. 



Sagamore Hill, 
Oyster Bay, K Y., September 9, 190,8. 

My Dear Sir: I have received your letter of August 
28th. I agree with all that you say as to the amount of 
affirmative and constructive legislation for the social and 
economic benefit of our people which has been accomplished 
by the Congress during the last seven years. The law 
establishing a national system of irrigation was of vital im- 
portance and stands in its line as second only to the home- 
stead law. The interstate commerce law has been amended 
so as to make it a new law, with three-fold the efficiency of 
the old law. The enactment of the pure food law was of 
almost or quite equal importance. The creation of the De- 
partment of Commerce and Labor, together with the crea- 
tion of Bureau of Corporations, which marks the 
beginning of Federal control over the huge corporations 
doing an interstate business, the employers' liability law, 
the safety appliance law, the law limiting the working hours 
of railways employees, the meat inspection law, the dena- 
tured alcohol law, the anti-rebate law, the law increasing 
the powers of the Department of Justice in dealing with 
those, regardless of wealth and power, who infract the law, 
the law making the Government liahle for injuries to its 
employees, the laws under which the Panama Canal was 
acquired and is being 1 built, the Philippines administered 
and the navy developed, the laws creating a permanent 
Census Bureau and reforming the consular service and the 
system of naturalization, the law forbidding child labor in 
the District of Columbia, the law providing a commission 
under which our currency system can he put on a thor- 
ough ly satisfactory basis, the laws for the proper administra- 
tion of the forest service, the laws for the admission 
of Oklahoma and the development of Alaska, the great ap- 
propriations for the development of agriculture, the legal 
prohibition of campaign contributions from corporations — 
all these represent but a portion of what has been done by 
Congress, ami form a record of substantia! legislative achieve- 
ment in harmony with the best and most progressive thought 

28 i 



28 j NECESSITY OF ELECTING A REPUBLICAN HOCSE. 

of our people. It is urgently necessary, from the stand- 
point of the public interest, to elect Mr. Taft, and a Re- 
publican Congress which will support him ; and they seek 
election on a platform which specifically pledges the party, 
alike in its executive and legislative branches, to continue and 
develop the policies which have been not merely profest but 
acted upon during these seven years. These policies can 
be successfully carried through only by the hearty coopera- 
tion of the President and the Congress in both its branches, 
and it is therefore peculiarly important that there should 
obtain such harmony between them. To fail to elect Mr. 
Taft would be a calamity to the country; and it would be 
folly, while electing him, yet at the same time to elect a 
Congress hostile to him, a Congress, which under the influence 
of partisan leadership, would be certain to thwart and baffle 
him on every possible occasion. To elect Mr. Taft, and at 
the same time to elect a Congress pledged to support him, is 
the only way in which to perpetuate the policy of the 
Government as now carried on. I feel that all the aid that 
can be given to this policy by every good citizen should be 
given; for this is far more than a merely partisan matter. 
Both your Committee, and the National Committee, of 
which Mr. Hitchcock is Chairman, are endeavoring to secure 
the active cooperation on the stump of Senators and Congress- 
men, party leaders and independent citizens generally. 1 
most heartily join in urging the importance of such co- 
operation. I hope that every disinterested private citizen, 
whose sole concern in politics is to have the right kind 
of man carry out the right kind of policy, will join in 
backing up your Committee as well as the National com- 
mittee in this movement. No service is as effective, as val- 
uable, as the disinterested service given in such manner by 
men whose one concern is for the triumph of the principles 
in which they believe; and I appeal with all the strength 
there is in mo to such men to give such support. 
Sincerely yours, 

THEODORE ROOSEVELT 

Hon. Wm. B. McKinley, 

Chairman, Republican Congressional Committee, 
St. James Building, New York, N. Y. 



■hK 



t\ 



/ 



GROVER CLEVELAND PREDICTS WM. 
H. TAFT'S ELECTION. 



"Mr. Taft's excellence as a Federal Judge is not to be 
overemphasized ; his high ideals of honesty and justice 
are valuable and commendatory." 

"The South has long taken a stubborn, foolish pride 
in its enlistment under the Democracy, and has stood 
like a rock in its part sanship." 



[From the New York Times, August 30, 1908.] 

Just before his death Mr. Cleveland planned the writing 
of three articles on the Presidential campaign of 1908. The 
first article was to he a general discussion of the political 
field, the issues and the men; the second was to deal with 
the issues developed by the conflict of the two parties, to 
appear in September; and the third was to deal with the 
doubtful States, this to be published shortly before the elec- 
tion. The first article was finished. Whether he made a 
beginning on either of the other articles is doubtful, as no 
trace of either has been found among his papers. The first 
article is published by the Times today by an arrangement 
made between a literary agent and Mr. Frederick S. Hast- 
ings, the executor of Mr. Cleveland's estate. 



Copyright, 1908, by The New York Times Company. 

Each quadrennial campaign is a recriuleseent crisis in 
the affairs of the American people, formative of new endeav- 
ors in our Xational life from the mass of the old mingled with 
new and untried. We are overfond of change and amend- 
ment, and at times reckless of underlying principles, which 
are not susceptible of change, and to antagonize which may 
mean disaster and at least is certain to entail stultifi- 
cation and impairment of the best of our past and present. 

The campaign on which we are entering signalizes the 
crystalization of more that is new than any other within forty 
years, and is not so important for the policies that it will 
fix for the next four years as for the greater changes thai 
its results will be found to foreshadow/ (her our horizon 

28 k 



281 TAFTS ELECTION PREDICTED BY CLEVELAND. 

lift the blunt heads of clouds of storm, and the low mutter 
of distant thunder is heard beneath the basic ro„ar of our 
eighty millions moving on. It is the earnest wish of one whose 
heart has long been engrossed with his country's greatest and 
best in the ultimate that the- men who shall take over her 
ward and keep shall fail not nor falter in that day more than 
those statesmen of the past whose giant figures loom in the 
vista- of our history mutely monitive to emulation. 

For a time there were those who feared that there was 
an obliquity in the standard of our civic morality which 
marked a degeneracy not to be averted, and greed, disinteg- 
rity, and malfeasance strode unabashed through the courses 
of our official functions. But we have lived to realize that it 
was merely an excrescence of the times, that it was something 
transitory, like unto the slough of a wound, and that its prev- 
alence and persistency were needed to rouse the opposition 
necessary to its final obliteration. So, it seems to me, as I 
review the last half century, that from the mental vision I 
may draw this certain conclusion: We as individuals and 
citizens are better, wiser, cleaner handed than we were, and 
are rising steadily to planes higher than we have yet known. 
It is true in one way that the a evil that men do lives after 
them and the good is too oft interred with their bones/' but 
that survival is more in eff edt than in popular consciousness. 

We are prone to think of the past as better than the 
present and to forget that which was publicly (discreditable 
in the last decade or the last generation. Considering these 
matters and conditions of which I have had some oppor- 
tunities of being informed, no hesitancy comes in saying that 
the agitation in behalf of common honesty in the past few 
years has had a notable effect, not only in the immediate 
conditions that underlay the agitation, but in the broader 
things of our intimate life as a people. Never has a more 
intelligent body of voters prepared to go to the polls, and 
never one more thoroughly awakened to its moral responsi- 
bilities. 

It is unfortunate at all times of dburse that a rigid 
partisan spirit should hold certain sections of the country 
to whatever course of action is provided for them by the 
leaders of the party to which they are committed, no matter 
whether that principle defining the course be some innocent 
sophistry or some dangerous obsession of a set of blatant 



TAFTS ELECTION PREDICTED BY CLEYELAXO. 28m 

demagogues. To be specific, the population of some of the 
New England States is so inherently Eepublican that the 
fallacy would be palpable indeed that would not earn their 
support just so it had the approval of the leaders of the 
Eepublican Party. On the other hand, the South has long- 
taken a stubborn, foolish pride in its enlistment under the 
Democracy and has stood like a rock in its partisanism at 
times when there are now few who would not admit that had 
its stand been one in the grounds of victory the consequences 
to the country, and particularly to the South itself, with her 
undeveloped industries dependent in their young growth on 
stable and favorable conditions at large, would have been 
direly unfortunate and productive of injury that cannot be 
estimated. 

There, is no suggestion of a sentiment of disloyalty on 
my part to the older principles of Democracy under which I 
have striven always to do my public duty in matters large 
and small when I say that there is a large indication that 
the coming years will bring forth a new ascendency of those 
same principles, perhaps under a different panoply, and per- 
haps with a reincorporation of the decayed fragments of an 
organization that failed to serve its purpose. No political 
party in any country has ever been wrecked by continued 
consistency with the principles that originally made it a 
power, the rocks on which it fell invariably being the errors 
of opportunists. The present campaign as a side feature will 
have a long step in the progress to the readjustment to 
first principles, and it is propitious indeed that there is 
no issue of such gravity that those principles are needed 
to determine it. Never has there been a safer time for the 
rehabilitation to proceed. 

When it became apparent that Mr. Taft would be the 
nominee of his party, that Mr. Hearst and his party would 
make a clean-cut effort for emplacement as a National factor 
and not endeavor to gain any immediate advantage for 
themselves by any such process as fusion, in fact would seek 
to destroy Bryanism, or rather Mr. Bryan's hold on the 
Democratic Party, not by forcing the hold to relax, but by 
lessening that which he had to hold, conjecture as to the 
result in the November conclusions could be of but one sort 
among sensible men. With the several other parties disor- 
ganizing, re-developing and pro-cn ating, the .Republican 



28 n TAFT'S ELECTION PREDICTED BY CLEVELA.XD. 

party is certain, though with a considerably lessened strength, 
to move on to a safe victory sustained by the popular support 
of reforms which should not redound to its glory solely, 
those reforms having been the work of decent men of all par- 
ties. 

There is fear on my part of being misunderstood in what 
I am about to say, but surely the fair-minded man must 
realize when he considers my attitude toward my own party, 
all now a matter of immutable record, that it is prompted 
by a sense of simple fairness. Personally and officially I 
have had the opportunity of knowing many things con- 
cerning Mr. Taft that were not a matter of general knowl- 
edge, and with a keen interest I have watched his large share 
in the conduct of our National affairs in very recent years. 
His excellence as a Federal Judge in Cincinnati is something 
not to be underestimated or overemphasized, for should he 
come to the Presidential chair the qualities which made him 
a Judge of high ability, which I know him to have been, will 
be the most needful to him as President of the United States. 
His high ideals of honesty and of relative justice, his great 
capacity for severe labor, and his humorous wisdom in the 
face of the serious problem are attributes equally valuable 
and commendatory to a people seeking him in whom they 
may repose the trust of their collective interests while they 
turn their increased attention to their pressing individual 
demands. 

Whatever may be said as to the events of the past ten 
years which are alleged to have made us a world power, there 
remains small opportunity for controversy over the essential 
features of our conduct in the face of the problems brought 
to face us by those happenings. Now, from being self-con- 
tained and compact in our political geography and federated 
in our common interests wherever our dominion was es- 
tablished, we have become extended and have increased the 
span of the arch of our structure, and must undertake to 
equate the widely different concerns of individuals and com- 
munities antithetical as to race, traditions, and modes of 
life and antipodal as to location on the face of the earth. 
Dwelling on the unwisdom of prematurely acquiring colonies 
is fatuous, the National duty is neither to help those colonies 
for their exploitation nor to cast them off to avoid the burden 
of their responsibilities. The questions involved are no more 



TAFT'S ELECT/OX PREDICTED BY CLEVELAND. 28 o 

matters to be harrowed through the mill of polities than is 
the policy of the Panama Canal something to be stamped 
either as Republican or Democratic. 

These questions are fruitful of trouble and perturbation, 
and the primary requisite of the man or men who must deal 
with them is an abundant knowledge of the people of the out- 
lying domain. That Mr. Taft is possessed of this knowledge 
as is no other man in the country is hardly to be denied; 
granted that he has had extraordinary opportunities, he has 
shown himself able to improve those opportunities in a 
manner which it is not extravagant to say will be his broadest 
claim so far to enduring fame when the acute visual dis- 
tortion of the present and opportune shall have given place 
to the inexorable perspective of history in which the relative 
values of public deeds to public duties are completely clarified 
and announced to posterity. The misery and misfortune 
which an ignorant or obstinate administrator, no matter how 
high the ethical standard of his motives, could entail upon 
our wards of the Pacific and Caribbean are appalling to 
contemplate; were his administration to be at fault in any 
other particular, in those things Mr. Taft's record shows 
him to be entirely dependable. 

Since the last Presidential election there have been the 
following large movements of public sentiment which have 
a bearing either remotely or immediately pertaining to the 
present campaign : The temperance sentiment has developed 
marvelously and extended to a greater scope than anything 
else in our history since the abolition of slavery; the evils 
of the various forms of gambling have provoked a smaller 
though considerable reform ; the manifest wrongs of the tariff 
system have excited clamor, based oh anger and resentment 
throughout the business world ; the growing power of cor- 
porate interests have met a stubborn retaining wall in the 
resistance of the individual to domination or disadvantage. 
and the doctrines of Socialism, long looked upon as an ex- 
crescence of economic friction, have entered deeply into the 
thought of a disturbed people, and must be reckoned with. 

The movement which has resulted in the closing of a 
hundred thousand saloons is fortunately something non-po- 
litical, or, rather, it is so local a matter and is so nicely 
equalized that it can have no general party ell'cct. In Xew 
York State the action of Gov. Hughes in compelling the 



28 p TAFT'S ELECTION PREDICTED BY CLEVELAND. 

race-track gambling legislation has merely served to widen 
the breach between the Democratic city and the Republi- 
can country. Not in this election or the next is the ques- 
tion of the tariff at all likely to be a paramount ' issue 
of the principle involved. That will come later when con- 
ditions have altered nationally and our foreign trade interests 
have assumed something of the gigantic proportions that 
are their ultimate destiny. 

In the policies of the present administration, which are 
announced as to be continued should Mr. Taft receive both 
nomination and election, there is an effect on the present 
campaign of a very puzzling nature indeed. If there were 
three large parties, one Liberal, one Eadical, and the third 
Conservative, there is no doubt that the East and the manu- 
facturing West would assemble its forces behind the Con- 
servative standard and would carry them forward to a 
meagre victory, but this is to be a campaign in which the 
vested interests can have no candidate and in which they 
can best secure their selfish ends by taking the safer choice. 
It is not likely that the business interests of the country 
would be disturbed by the victory of either party, and cer- 
tainly Mr. Taft's reiterated attitude toward corporations of 
all sorts contains no hint that fair dealing on their part will 
be met with anything but conservative and discriminating 
generosity on the part of his Administration. From impres- 
sions gathered among men with much at stake, it is dear 
to me that the corporate interests of the country, though 
convinced that illegal combinations, illegal repression of com- 
petition, and illegal exploitation of the public are things 
which the public intends to make no longer possible, have no 
fear of the outcome, knowing that honesty, whether com- 
pulsory or voluntary, never caused a panic or a decline in 
genuine values. 

Gravely different, however, are the facts underlying 
the social movement. It must be realized that this is no 
agitation for a fairer adjustment of matters between capi- 
tal and labor; it is something which attacks with the idea of 
destruction, the fundamental idea of property, and the plain 
principle of wage employment. With Socialism in the as- 
cendency, capital and labor cease to be things which their 
terms now signify. It is not within my province to discuss, 



ITAFT'S ELECTION PREDICTED BY C'lEVELAXD. 28 q 
trovert, or even elucidate the opposed conditions; rather 
should the political effect be considered. 

R Quite as the average citizen viewed with astonishment 
e total figures of the last election, seeing that even against 
the tide of Mr. Roosevelt's personal popularity Mr. Debs 
had polled nearly half a million «»tes, so will they contem- 
plate the results in November. If Mr. Hearst's party were 
not in the field, and therefore should not draw to it a large 
body of disaffected voters who will he chary of advocating 
radical Socialism, and the Socialist and Socialist Labor par- 
ties were to mark the full count of those who have become 
imbued with the fallacies of the non-competitive state of 
society they would be found to be more than a million strong, 
and it will be no matter of surprise to me if the returns 
show more than that up to the point of having tripled the 
record made four years ago. 

The union labor vote is an indeterminate quality and 
never will be more in America. In the first place, the causes 
that make a union are usually local and conflict with broader 
interests, as is quickly found when an effort is made to treat 
rliem as general. The mere fact of being federated on the 
basis of a single interest, that of common employment as 
skilled laborers for wages, can never force the mass of 
union men to act politically with anything like solidarity. 
We have seen the labor vote of a district crush a Congress- 
man, or the labor men of a State make a Governor or con- 
trol a Legislature, but never will it be possible for the Na- 
tional labor vote to be anything more than a myth, except 
when workingmen, no matter whether union or non-union, 
individually determine that a vote for a National candidate 
and his party platform means a continuance of their pros- 
perous estate, or an improvement in one that is bad. 

Preponderating in its importance to the future as to 
peace or war, and international relations and commerce, is 
the integrity, -sanity, and perspicacity of the new Congress. 
V\ ithout wishing to be understood as anticipating attempts 
from the exterior to hinder our progress or balk the peaceful, 
prosperous course of our development, it would be an 
evasion for me to conclude this paper without taking cogni- 
zance of our international situation and its relation io the 
campaign. As I have intimated, there is no more reason to 



28 r TAFTS ELECTION PREDICTED BY CLEVELAND. 

consider ourselves a world power now than in the days when 
our fleet met the British on equal terms or when we went 
into the Mediterranean to punish pirates or, though young 
and raw, dared to balk the European programme that made 
Maximilian Emperor of Mexico. 

While it is true that our powers have multiplied many 
times since then, it must be remembered that the military 
establishments and colonial activities of Europe have more 
than quadrupled. We are merely returning to our own in 
some things, though taking on a new importance in others. 
We are palpably drifting into a set of relations toward 
other powers, especially in the matters of China, Hawaii, 
and the Philippines, from which we can emerge without 
war only through the strongest and wisest statesmanship; 
nevertheless, the justice and humanitarianism of our acts 
and policies will serve us in the highest degree, and we may 
be able to surmount the crisis without those certain results 
which would be deplorable in the extreme. 

It is hot often that Congress has shown itself fitted to 
deal wisely with conditions outside our borders, compared 
with its handling of domestic affairs, and our political econ- 
omy places such a potentiality for mischief in our deliberative 
assemblage that it might undo all the craft of State and the 
wisdom and conservatism of the Executive. For months the 
indications have been that the next Congress would see many 
new faces, and the country may look for Eepublicans from 
the South and Democrats from New England at a rate and 
with a diffusion that will be truly surprising. 

But when the misadventures of parties, misled by so- 
phisticated, sympathy-mad leaders, trumpet false calls to 
reform, treacherous distortions of sentiment subordinating 
private interests and the well meaning but overheated blun- 
derings of the impetuous are all met and ordinated, there 
must rise the final good, for the Hand of the Almighty lies 
to hold and guide, steadily, unwavering, and eternally secure, 
and through His infinite mercy we shall come to the fulfill- 
ment of our mission, foretold with our birth, nobly begun 
in our youth, for the uplifting of our race and our brothers 
of the favors not our own. 

GEOVER CLEVELAND. 






FOREWORD. 



The purpose of this book is to furnish in concise and con- 
venient form for reference such information as is likely to be re- 
quired by speakers, writers, and others participating in the dis« 
missions of the Presidential campaign of 1908. However well ad- 
vised the speaker or writer may be upon the topics of the cam- 
paign, he will require for reference many facts and figures which 
can only be had by consulting numerous publications, many of 
them so bulky as to be practicable for desk use only. This work 
is intended to present #n concise and portable form the n ore im- 
portant of these facts and figures, so condensed and arranged as 
to be convenient for ready reference in the field, on the stump, 
upon the train, or wherever they may be desired. The arrange- 
ment of the book will be apparent upon an examination of the 
table of contents which occujfies the opening page. Each of 
the subjects likely to require discussion is treate I m.der its 
proper title and followed by such statistical statement'-? as may 
be required for further reference. A copious index which fol- 
lows the table of contents will enable those utilizing the volume 
readily to find the detailed facts which they may require for in- 
stant reference. The statistical a^td historical state. i.ei.ts pre- 
sented in the discussions have been carefully verified and the 
authority, in the more important statements, cited, while the 
tables are in most cases from official publications of the Gov- 
ernment or from accepted authorities. 

_ It has been deemed proper to present as fully as practicable 
information upon subjects likely to receive especial attention, 
and the space allotted to the chapters on Control of Corpor- 
ations, the Money Panic, and the relief afforded by the Treasury 
Department. Wages and Prices, Tariff, the Philippines, and 
the Work of the Army has been adjusted to the possible re- 
quirements of those desiring information upon these subjects. 
Much unfounded criticism has been offered by the Democrats 
with reference to the enlargement of the Army and the expen- 
ditures under its operations, and it has therefore been deemed 
proper to present somewhat in detail information regarding the 
work which it has so successfully accomplished both in war 
and in the development of conditions at home. The criticisms 
of the work of the party in regard to the Philippines, coming 
from a party which has already the record of having hauled 
down the American flag in islands of the Pacific, suggest . ae im- 
portance of a full presentation of the splendid work done in those 
islands. The constant but unfounded assertions that cost of 
living has advanced more than wages justifies the detailed dis- 
cussion of this subject which will be found in the chapter en- 
titled •"Labor, Wages, and Prices." and especial attention is 
called to the information there presented which fully disproves 
these assertions. 

EXTRACTS FROM THE CONGRESSIONAL RECORD. 

Another volume, entitled "Extracts from the Congressional 
Record.'" contains brief extracts from speeches' delivered in 
Congress upon subjects likely to be discussed in the present 
campaign. It contains- the best utterances of. the party leaders 
during its entire history upon the great .subjects likely to he 
considered in this campaign. Regulation of Corporations, the 
Money Panic. Protection. Reciprocity. Trusts. Prices. Republi- 
can Prosperity. Democratic Adversity, the Workii gran, the 
Farmer, the Soldier, Rural Free Delivery, the Post-Office In- 
vestigation, Panama, Cuba, the Philippines and the Pacific. 
Shipping, the Navy, and the Record of President Roosevelt are 
discussed in these concise extracts from the public utterances 
of party leaders past and present. The volume may readily be 
used as a pocket companion, in the field or on the train, and will 
prove a valuable supplementary work' in connection with this 
text book. 

Both volumes may be obtained upon application to the Na- 
tional Committee. 

29 



FOUR GREAT FACTS. 

"Four great facts seem to justify the Republican party in arm- 
ing the voters of the United States to continue it in control of the affairs 
of the Government. First, the promptness with which it has fulfilled to. 
pledges of its platform upon which it successfully appealed to the peopie 
in 1896 ; second, the prosperity which has come to all classes of ojv 
citizens with, and as a result of, the fulfillment of tho^e pledges; third, 
the evidence which that prosperity furnishes of the fallacy of the prin- 
ciples offered by the opposing parties in 1896, and still supported by them ; 
and, fourth, the advantages to our country, our commerce, and our people 
in the extension of area, commerce, and international influence which 
have unexpectedly come as an incident of the fulfillment of one of the 
important pledges of the platform of 1896, and with it the opportunity for 
benefiting the people of the territory affected." — From the Republican 
Campaign Text-Book of 1900. 

The above quotation from the opening pages of the Repub- 
lican Campaign Text Book of 1900 applies with equal force to 
conditions in the present campaign. The four great facts which 
justified the party in asking the support of the public in 1900 
were : First, that its pledges of 1896 had been redeemed ; second, 
that prosperity had come as a result ; third, that developments 
since 1896 had shown the fallacy of the principles upon which 
the Democracy then appealed for public support ; and, fourth, 
the conditions which had come to other parts of the world and 
their people as a result of promises fulfilled b}*- the Eepublican 
party in the United States.' These assertions made in the Text 
Book of 1900 have been fully justified by the added experiences 
of another eight years. The pledges of 1896 and those n ade in 
1900 and 1904 have been redeemed. The Protective Tariff has 
been restored ; the Gold Standard made permanent ; Cuba freed, 
given independence, protected from internal troubles and about 
to be again made a Republic ; the Panama Canal assured under 
the sole ownership and control of the United States ; a Depart- 
ment of Commerce and Labor established; Eural Free Lelivery 
given to millions of the agricultural community ; the laws for 
the proper regulation of trusts and great corporations strength- 
ened '~;and enforced; prosperity established; coaimerc > devel- 
oped; labor protected and given ample employment and reward; 
intelligence, prosperity, and good government established in dis- 
tant islands ; and the flag of the United States ma:le the em- 
blem of honor in every part of the world. 

All of these great accomplishments have been the work of 
the Republican party. In each of them it has met the discourage- 
ment, the opposition, and the hostilities of the Democracy. The 
Protective Tariff was fought at every step, and denounced by 
the platform of the Democrats as a "robbery." The act estab- 
lishing the Gold Standard was opposed and the Democratic vote 
cast almost solidly against it, and that party in its conventions 
and platforms of 1904 and 1908 deliberately refused to retract 
in the slighest degree its advocacy of the free and unlimited 
coinage of silver. In the war for the freedom of Cuba, the 
work of the Republicans was met with harsh criticism. In 
the efforts" to establish peace and good government in th« 
newly acquired territory, each step met with opposition and 
false charges and with the demand that the territory and its 
millions of people be abandoned to internal strife or control 
by a monarehial government. The acquirement of the right to 
construct the Panama Canal was met with opposition and ob- 
struction. The enforcement of law against trusts and other 
great corporations was denounced as ineffective and designed to ' 
deceive the public. The establishment of rural free delivery 
was discouraged. The splendid prosperity which followed the 
restoration of the protective tariff was decried and denounced 
as fictitious and temporary, and an attemp.t made to sow the 
seeds of dissatisfaction and. discord among the people by com- 
plaints of the higher cost of food which came as the natural re- 
sults of the increased demand accompanying general prosperity 
and ttf'g'n wages. 

Ft is upon the evidence of the past twelve years, evidence 
that the Republican party is a party of progress, and the 
Democracy a narty of inaction, retardment, and fault- 
that the Republican party again confidently appeals for public 
support in the Presidential and Congressional elections of 1908. 

30 






REGULATION OF CORPORATIONS. 



; 



lieguiatioii of Corporations. 



be last eight years hive been momentous. They have 
brought us the problem of industrial and commercial honesty; 
the proper control of our vast industrial forces. The most 
cou.-plcuous and important part of the work of the present Re- 
puu.jcau administration has been given to this problem — the 
"square deal'' in business. 

Our national prosperity has in itself brought this business 
question to the acute stage of a national crisis. We are as- 
sured of our enormous national resources, of our power to de- 
velop them. We have accumulated great national and individual 
wealth. Now the country is talcing up the question of the 
methods by which such resources have been developed and wealth 
Required, recognizing that no industrial system, however ap- 
parent. y successful, can permanently endure unless it is based on 
fair competitive methods and equal opportunity for all men. 

The enormous concentration of commercial power in a few 
hands has been one of the marked characteristics of the past 
decade. It has formed part of this problem and has aroused the 
country to a consideration of the industrial and economic facts 
involved therein. 

The Administration holds that the efficient business man 
should be fully rewarded for the great services he renders to the 
p blie. It desire.- in every way to support and foster honest 
business. There is no quarrel with corporations themselves, or 
with the acquisition of wealth, but only with certain forms of 
corporate organization and management, and certain methods by 
which such wealth is acquired. Corporations are the proper and 
necessary machinery of modern business. We cannot carry on 
our commerce without them. Therefore it is necessary that we 
so supervise and regulate them that their obvious evils and de- 
fects be cut away, and the essential part of our business ma- 
chinery be preserved for the wOrk for which it is absolutely 
necessary. The community has created corporations; they are 
artificial things, wholly due to the act of the state. The state 
is therefore responsible for them and has not only the right, 
but also the imp native duty, of requiring their proper organiza- 
tion and management. 

The Administration has therefore given its attention es- 
pecially to the Dusiness methods of corporations, to put an end 
to those methods that are against public interest, and to pre- 
serve the essential good in the system. 

In so far as corporations engage in interstate commerce they 
are subject to Federal law. Most of our large companies are 
interstate in their operations and national in their scope. s;o 
the only power competent to regulate them is the National 
Government. The jurisdiction must be commensurate with the 
scope of the subject-matter. Our financial and industrial leaders 
have deliberately made our businesses national by their combina- 
tions, blotting off the business nia*p the lines between corpora- 
tion and corporation, between State and State. They cannot 
therefore justly be heard t;> complain if the legal control of 
these businesses be also made national, to meet the conditions 
they themselves have < reated. 

Our present system of combination, e6ncentr&ting bu'sii 
in the hands of a few men, has entrusted to the corporate mana- 
ger vast powers. lie can apply these lows at any given point, 
in favor of one man or another: he can bargain for special favors 
and privileges; he can use its powers and its credit for his own 
private benefit; he can a fed the agencies of public opinion at a 
thousand points. 

These powers have in certain instances been wrongly r>(d. 
The credit of corporations has been made the tool 6! Private 
gain, to the loss of the stockholder and the public. Tower over 

31 



32 REGULATION OF CORPORATIONS. 

traffic has been used to buy unfair advantages, to secure from 
railroads rebates and secret private rates, favors in car distribu- 
tion, terminal and dock facilities. The sheer weight of capital 
has been used to crash competitors by ruinous local price-cut- 
ting, simply to destroy the business of others. Skill tui advan- 
tage has been taken of the confusion of our corporation laws to 
obscure and defeat the rights of minority stockholders and bond- 
holders. 

The Eepublican party has taken vigorous action on these ques- 
tions. It is trying to save and promote business, to maintain an 
industrial machinery which shall be capable of standing up to 
the work of an industrial nation. That machinery must be built 
on merit and not on fraud or favor. It proposes to see that capi- 
tal and energy, and labor and brains, have a fair chance. It 
proposes to see that man win who is a good manufacturer, a 
good railway man, a good salesman, who g-'ts good business be- 
cause he gives good service, and not that man win who is cnlV 
pood at getting an unfair advantage or at preventing any onfe 
else from doing business. 

The business men of the country desire honest methods. T hey 
desire to succeed simply by giving the best service and the lowest 
prices, and such success benefits the public also. These men have 
the support of the Administration, and they need it against the 
unfair business methods of that small but active class of men 
who succeed merely by crippling the efficiency of competitors, 
by denying them equal opportunity. Such success means the in- 
jury of our whole business system. 

The President has again and again stated the principles of 
the Administration in this matter in addresses and messages to 
Congress, 

"It is an absurdity to expect to eliminate abuses in great corporations 
by State action. * * * The National Government alone can deal ade- 
quately with these great corporations." ******* "Our aim 
is to help every honest man, every honest corporation, and our policy means, 
in its ultimate analysis, a healthy and prosperous expansion of the busi- 
ness activities of honest business men and honest corporations." * * * 

"A combination should not be tolerated if it abuses the power ac- 
quired by combination to the public detriment. * * * Among the points 
to be aimed at should, be the prohibition of unhealthy competition, such as 
rendering service at an actual loss for the purpose of crushing out com- 
petition." 

Led by President Roosevelt, the National Administration has 
therefore been dealing with corporations along the lines of 
a consistent policy which has never changed in principle. It 
has enforced the laws that make for fair competition and equal 
opportunity and has made them essential parts of our commer- 
cial system ; equal rates from the railroads, the highways of 
commerce, have been afforded to all shippers as never before. 
Railroad rebates and discriminations, which are the deadliest 
attacks on equality in business, have been exposed and punished, 
so that there is to-day less of railroad discrimination being 
practiced than at any time since the passage of the Interstate 
Commerce Law in 1887. The Standard Oil Company has had its 
system of unfair railway discriminations laid open in detail to 
the public, has been indicted in *six different judicial districts, 
including thirty indictments with a total of 9,704 offenses enum- 
erated therein ; in the Northern District of Illinois it has been 
convicted of 1,462 offenses and a fine imposed of $29,240,000. 

As the result of the exposure of this system of railwaj^ re- 
bates by the Bureau of Corporations in 1906, and through the in- 
fluence of publicity, the railroads have cancelled long-standing 
illegal and unfair rates, covering almost the entire country. 

Railroad companies have been indicted, convicted and fined 
for giving railway concessions, as well as shippers who had ac- 
cepted such illegal discriminations. As a result, the public and 
the railroads and the shippers of freight have come to under- 
stand that the Elkins Law, which forbids railway discriminations, 
means what it says; that it is the determination of the Adminis- 
tration that the railroads of the country shall be kept open by 
fair and equal rates for the benefit of all shippers alike, and 
that those secret discriminations which have built up* certain 
favored businesses upon the ruin of many competitors, shall 
cease and be no more hereafter a part of our commercial system. 
There have been, of course, the usual protests against these 



fin 



REUL'LATIOy OF CORPORATIONS. 33 



lies. It is urged that only the individual who did the act should 
be punished and not the corporation for whose benefit it was 
done. Such counsels of perfection are futile. The imprisoning 
of a clerk does not stop railway rebates (and the clerk is 
usually the highest man against whom legal evidence is obtain- 
able). Industrial crimes by which a corporation benefits are 
rightly chargeable to that corporation. If the corporation is 
punished the crime will stop. 

The Sherman Anti-trust Law has also been wisely used by the 
Administration to put an end to those forms of combination 
which are directed either at total suppression of proper competi- 
tion or at the destruction of competitors by unfair means. The 
Administration has recognized that combination to a certain 
extent is necessary and proper, but that on the other hand cer- 
tain forms of combination, from their peculiar purposes and 
effects, are clearly against the public interest. The Northern 
Securities case established certain great basic legal principles as 
to tne power of the Federal Government over corporations, as 
did also various other cases tried under the Sherman Law. The 
result has been to make clear as never before the positive powers 
granted by the interstate commerce clause of the Constitution, 
and to point out to the country the lines along which these 
[ owers may be used for the regulation of corporations. On the 
other hand, in the case now pending under the Sherman Law 
against the Standard Oil Company, this law has been applied 
to a system of unfair methods of competition and the abuse of 
corporate powers. All of these cases have had the important re- 
sult of bringing to the attention of the public in concrete shape 
the great problems involved, and of arousing and educating pub- 
lic opinion thereon. 

Again, the Republican party has, during this period, placed 
upon the statute books a number of fundamental acts greatly 
strengthening the power of the Administration to carry out the 
policies above outlined. The so-called Elkins Law of 1903 gave 
a practical means of destroying railway discriminations. It 
made the crime the same in the case of the shipper as in that 
of the railroad. It set up a definite standard of the published 
rate by which discriminations can be judged. It is under the 
Elkins Act that all the present indictments and .convictions for 
railway discriminations have been secured. 

In June, 1906. the so-called Late Bill became a law. It es- 
tablished the great principle of the right of the Federal Govern- 
ment through the Interstate Commerce Commission to regulate 
railway rates so that the same shall be reasonable. It brought 
also under the jurisdiction of that body additional classes of 
common carriers, such as express companies, sleeping-car com- 
panies, pipe lines, etc.. not theretofore covered by Federal legis- 
lation. It made complete and final the power of the Government 
to inspect railway accounts, and prescribe their form. 

In 1903 there was also created the new Department of Com- 
merce and Labor, and in that Department there was established 
the Bureau of Corporations. The Commissioner of Corporations 
is given compulsory power to investigate into the organization. 
conduct and management of the so-called industrial corporations 
engaged in interstate commerce. He does for industrial cor- 
porations, to a certain extent, what the Interstate Commerce 
Commission does for the railroads. The information he thus ac- 
quires is transmitted to the President only; and made public as 
he directs. This provision safeguards the use of this informa- 
tion, which may cover matters of private business which should 
be made public only upon the responsibility of a high officer of 
the Government. The work of this Bureau has been that of 
"efficient p- h'ic"ity"--of setting before the public, after very 
careful investigation, summarized statements and brief con- 
clusions showing the important facts of corporate operations. 
This gives the, concise information that the citi/.en will read and 
upon which he can form an intelligent and clear opinion on these 
paramount questions of the present. Complex corporate ques- 
tions are thv.s rod ced to their simple factors of right and wrong, 
and in this shape the people can settle them promptly. 

It has been the established policy of the Administration 
to get the help of the public in settling these great questions. 



34 REGULATION OF CORPORATIONS. 

Many of the mbst serious evils in corporate organization and 
management can be reached only by public opinion. Many 
forms of unfair competition and morally fraudulent business 
nevertheless are within the strict meaning- of law and cannot be 
attacked by judicial process. The only way in which they can 
be reached is by the ordinary standards of business honesty as 
understood by the average citizen. It has been encouraging to 
see the effect of such a definite policy. Mere general denuncia- 
tion carries little weight. But when improper conduct has been 
authoritatively set forth, with the specific details of time, place, 
person and amount, there are few managers of business in this 
country w T ho dare stand up against the weight of public criti- 
cism thus directed at such transactions. Further, this is pre- 
ventive ; it operates beforehand. The business manager who 
knows that his transactions are liable to be examined and ex- 
posed by expert Government officers hesitates long before doing 
that which he knows will meet with public condemnation. The 
effect of this restraint, therefore, is general throughout busi- 
ness, and not, like the isolated result of a single court finding, 
effective only upon the particular parties to the suit and after 
the evil has been done. 

Furthermore, this process educates public opinion. Our in- 
dustrial- system is the most complex thing in modern life. 
The average citizen has no time to investigate its details so 
.as to draw reliable conclusions therefrom. The ignorance of 
the many is always the unfair advantage of the unscrupulous 
few. If there is anything which the voter is entitled to 
demand from his Government it is information in regard 
to such subjects. He must have it in such shape and with such 
authority that he will understand and accept these conclusions as 
a reliable basis for his views on commercial affairs. The busi- 
ness question is by far the most important now before the 
country. It is therefore clear that this business education of 
the public should be carried on as fully and as carefully as any 
work of the Government, and that the public standards of busi- 
ness morals be made as definite and effective as possible. This 
it has been the consistent policy of the Administration to do, 
and it has gone far toward doing it. 

Thus the Government by simple exposure wiped off. the busi- 
ness map the greatest system of railway rebates that ever ex- 
isted, the one exposed by the Bureau of Corporations in its re- 
port of May, 1906. Immediately upon the publication of that 
report the railroads canceled every illegal rate criticised there- 
in, as well as many others that were not illegal but nevertheless 
unfair. Similar action on the part of the Government in regard 
to certain operations in cotton exchanges has resulted already 
in the introduction of reforms in the methods of those exchanges. 
Numerous other instances have occurred where unfair methods 
of competition have been abandoned through fear of publicity 
and the small and independent competitors in a great industry 
have been relieved from the ruinous pressure of secret and un- 
fair methods on the part of large corporations. So great has 
been the progress in public opinion, and so heavy its pressure, 
that the great corporations, hitherto against publicity, are now 
themselves openly advocating and adopting it. The most far- 
sighted business leaders are urging it, for the protection of their 
own businesses. There has been a sweeping change in public 
opinion that is one of the greatest advances ever seen in this, 
nation. 

This whole work of the Republican Administration has dealt 
with a matter of the highest importance to the nation. Upon its 
successful outcome depends the permanent welfare of this coun- 
try, the permanent protection of property rights, the standards 
of business morals that are and will be current among us, the 
establishment of law as against those that set at nought the law. 

As the President has said in his message to Congress of 
January 31, 1908: 

"It is not a movement to be completed in one year, or two or three 
years. It is a movement which must be persevered in until the spirit 
that lies behind it sinks deep into the heart and conscience of the whole 
people. It is always important to choose the right end to achieve our 
purpose, but it is even more important to keep this purpose clearly be- 
fore us ; and this purpose is to secure national honesty in business and 
politics." 



REGULATION OF CORPORATIONS. ;j;> 

By the slow process of ^education, by the testing of present 
methods available and by suggesting new ones, the work of the 
Administration has thus been leading up toward that logical 
advance in the S3'stem of dealing with corporations which it is 
clear must soon come. The final solution of this question must 
be some efficient system of regulation, some control of corpora- 
tions which shall be positive and active. The Administration 
has consistently stood for such an advance, believing that the 
present commercial machinery is too complex to be adjusted by 
the inflexible, occasional remedy of judicial procedure. It holds 
that corporate business must be regulated in the future by ad- 
ministrative action on the part of the Government through a 
permanent office supervising interstate corporations, making 
their accounts subject to inspection at will, publishing the im- 
portant facts of corporate business in concise form, and provid- 
ing also for that protection of law-abiding corporations that is 
the correlative of regulation. 

Xo such system can be reached until the public believes that 
it is necessary. Such public opinion is rapidly growing and win. 
in time, bear fruit in such a system, but when this system comes, 
as it ultimately will, it will be largely the results of the process 
of education and intelligent publicity that for the last eight years 
has been carried on by the Kepublican Administration in con- 
nection with corporate affairs. 

Bureau of Corporations. 

The Bureau of Corporations, a part of the Department of 
Commerce and Labor, was created in February, 1903, by the act 
establishing that Department. It is charged with the duiy of 
investigating into the organization, conduct and management of 
corporations engaged in interstate and foreign commerce (other 
than common carriers subject to the jurisdiction of the Inter- 
state Commerce Commission) and of reporting the results there- 
of to the President, for the information of Congress and the 
public. 

Two ideas lie at the basis of its work : Its object is the pro- 
motion of fair and honest business methods ; its means "efficient 
publicity." Its Commissioner has compulsoiy pow T ers of obtain- 
ing information. It has in its employ men of expert training 
in corporate affairs. With these foi'ces at its disposal, it. gathers 
minutely and accurately information in regard to- the opera- 
tions of the corporations representing the great staple indus- 
tries of the country, and reduces the vast mass of this informa- 
tion to such shape that "the man in the street" will read it. It 
sets before the President. Congress, and the public reliable in- 
formation as to the operations of the great interstate corpora- 
tions in such brief and clear form as to show the important 
tendencies and conditions of corporate business. With such in- 
formation as a basis, the great corrective force of public opinion 
can be intelligently and effectually directed at those industrial 
evils that constitute the most important of our present prob- 
lems. The public will not read great masses of statistics or of 
industrial facts. These must be collected, it is true, in vast 
masses, but when presented to the public they must take the 
sh»ipe of brief conclusions, absolutely reliable, wholly impartial, 
and dealing only with the significant tendencies of the business 
or corporation in question. This is the sort of information that 
the citizen demands, and has a right to demand, from his Govern- 
ment. 

On these lines the work of the Bureau has been consistently 
carried on. In 1005 it issued its first report on the beef in- 
dustry. In 1006 it issued its report on the Transportation of 
Petroleum, setting forth detailed facts in regard to a large 
number of railway discriminations in favor of the Standard Oil 
Company and its subsidiary concerns, many of these illegal, 
others not illegal but unfair. Numerous indictments presented 
by the Department of Justice against these concerns were based 
on this report, many of which are now pending, two of which 
have been tried, and one of which resulted in the fine of $29,- 
2-10,000 imposed on the Standard Oil Company at Chicago in 
1907. In all 30 indictments have been brought under this re- 



36 REGULATION OF CORPORATIONS. 

port of the Bureau, including 9,764 offenses in all, and covering 
a large portion of the country. / 

While the criminal prosecution of this long-established and 
effective system of railway discriminations is very important, 
a much more important result from the work of the Bureau was 
the sweeping effect of simple publicity on this system. Almost 
immediately upon the issuance of this report in 1906, the rail- 
roads canceled every illegal rate criticised in the report, as well 
as many other rates not illegal but unfair, and it is safe to say 
that never since the passage of the Interstate Commerce Act in 
1887 has the giving of railway discriminations been so much 
curtailed as it has been since the publication of this report. 

In May, 1907, the Bureau published a report on the Position 
of the Standard Oil Company in the Petroleum Industry, showing 
the additional methods used by the Standard Oil Company to 
secure and maintain domination in that industiy. In August, 
1907, the Bureau published a report on the Prices and Profits 
in the Petroleum Industry, setting forth mainly the price 
methods of the Standard Oil Company and their effect on com- 
petitors and consumers. This series of reports has gone far to 
lay before the public the essential facts necessary for it to form 
a fair and effective opinion on the operations of the dominant 
corporation in one of our greatest industries, and has largely 
relieved both the public and independent competitors of the un- 
fair pressure of an almost controlling system of railway dis- 
criminations. 

In May, 1908, the Bureau published a report on certain fea- 
tures of the operations of cotton exchanges, showing the injuri- 
ous effects upon that industry of certain regulations and forms 
on those exchanges, and pointing the way toward improvement 
therein. 

It also has now under investigation the lumber, tobacco, and 
iron and steel industries, the harvester industry, inland and 
coastwise water tuansportation, and a further inquiry into the 
operations of the cotton exchanges. 

The beneficial results of the Bureau*s work have appeared in 
the marked diminution of railway rebates, the eliminating of 
many forms of oppressive and unfair competition, and especially 
in a great advance in the intelligent, effective, and actively ex- 
pressed opinion of the country as to corporate operations, as 
well as a far better understanding of our entire commercial 
system. * 



WORK OF THE DEPARTMENT OF JUSTICE ON CONTROL 
OF CORPORATIONS. 

Prosecutions under Sherman Act and Interstate Commerce 

Laws. 

It has been the duly of the Department of Justice to defend 
the soundness of the positions taken by it in matters relating 
to prosecutions under the Sherman Anti-Trust Act, so-called, 
and also under the Interstate Commerce Act, by carrying pro- 
ceedings thus inaugurated through the various courts and to a 
final determination in the Supreme Court of the United States. 
It has been the constant endeavor of the Department to have the 
material questions involved settled as soon as practicable, and 
to this end it has moved to advance cases, and has been insist- 
ent upon the prosecution of the various appeals and interme- 
diate steps involved. The result has been a definition by the 
Supreme Court of many aspects of the Sherman Law, and a 
series of decisions under which further proceedings in enforce- 
ment of this law can be taken with reasonable hope of success ; 
the facts in each case being determined by a thorough, and fre- 
quently expensive, examination by the Department of Justice. 
The following very brief statement of the cases so far decided, 
and the particular aspect of the law decided in each, will be 
found to be of value as noting the progress of the work of re- 
straining unlawful combinations : 



REGULATION OF CORPORATIONS. 37 

U. S. v. E. C. Knight Co. — Sugar Trust Case — 156 U. S. 1. 

This was the first case under the Anti-trust act taken to the Supreme 
Court of the United States. This was a suit instituted by the Government 
against the "Sugar Trust." The Circuit Court and the Circuit Court of Ap- 
peals decided against the Government, and their decisions were affirmed by 
the Supreme Court, which held that the acts denounced by the Act of July 
2, 1890, are a monopoly in interstate and international trade or com- 
merce, and not a monopoly in the manufacture of a necessity of life. 

17. S. v. Trans-Missouri Freight Association, 166 U. S. 290. 

This was a suit to enjoin the operations of a combination of railroads 
engaged in interstate commerce alleged to have formed for the purpose of 
maintaining just and reasonable rates, and preventing unjust discriminations. 
The Circuit Court and Circuit Court of Appeals both decided against the 
Government, but their decisions were reversed by the Supreme Court, 
which held that the Anti-trust act applied to railroad carriers and embraced 
all contracts in restraint of trade and commerce among the several States 
and with foreign nations, and was not confined to those in which the 
restraint was unreasonable. 

U. S. v. Joint Traffic Association, 171 U. S. 505. 

This was a bill in equity to enjoin the alleged violation of the Anti- 
trust law by a combination of thirty-one railroads engaged in transporta- 
tion between Chicago and the Atlantic coast, which had formed themselves 
into a combination to control competitive traffic, fix rates, etc. The Circuit 
Court and Circuit Court of Appeals decided against the Government, which 
decisions, however, were reversed by the Supreme Court, that court reaf- 
firming the case of U. S. v. The Trans-Missouri Freight Association and 
holding that the Traffic Association was an illegal combination. 

U. S. v. Hopkins et al., 171 U. S. 578. 

This was a bill to restrain the operations of the Kansas City Live 
Stock Exchange. An injunction was granted, but the Supreme Court re- 
versed the decree of the Circuit Court, holding that the business Of a 
Live Stock Exchange did not constitute interstate commerce, and was not 
covered by the Anti-trust act. 

Anderson v. U. S., 171 U. S. 601. 

This was a proceeding to restrain the operations of The Traders' Live 
Stock Exchange, of Kansas City, an association formed for the purpose of 
buying cattle on the market. A temporary injunction was granted and an 
appeal taken to the Circuit Court of Appeals, which certified certain ques- 
tions to the Supreme Court for instructions. The Supreme Court decided 
that the rules of the Live Stock Exchange were not in violation of the 
Anti-trust act. • . 

U. S. v. Addyston Pipe and Steel Co., 175 U.~S. 211. 

This was a suit by the Government to enjoin the operations of the 
cast-iron pipe trust, which attempted to enhance the price of such pipe 
by controlling and parceling out the manufacture and sale thereof through- 
out the several States and Territories to the corporations forming the com- 
bination. The Government's bill was dismissed by the Circuit Court, 
which decision, however, was reversed by the Circuit Court of Appeals, 
affirmed by the Supreme Court of the United States. That court held the 
combination to be a violation of the act, indicating wherein it came with- 
in the prohibitive power of the Congress and distinguishing the case from 
the non-violative acts in the case of the United States v. E. C. Knight 
< ompany. 

U. S. v. Northern Securities Co. et al., 193 U. S. 197. 

This was a suit instituted by the Government to enjoin the Northern 
Securities Co. from purchasing, acquiring, receiving, holding, voting, or in 
any manner acting as the owner of the shares of the capital stock of the 
Great Northern Railway Company and Northern Pacific Railway Company, 
and to restrain the railway companies from permitting the Securities Com- 
pany to vote any of the stock of the said railway companies, or from 
exercising any control whatsoever over the corporate acts of either of 
said railway companies, it being charged that the Securities Company was 
fdrmed for the purpose of acquiring a majority of the capital stock of the 
two railway companies named in order that it might in that way effect 
practically a consolidation of the two companies by controlling rates and 
restricting and destroying competition, in violation of the Sherman Anti- 
trust act. The Circuit Court decided in favor of the Government, and this 
decision was affirmed by the Supreme Court of the United States. 

U. S. v. Swift & Co. et al., 196 U. S. 375. 

This was a suit brought by the United States against the "Beef 
Trust" to enjoin the carrying out of an unlawful conspiracy entered into 
between Swift & Co. and other defendants and with various railway com- 
panies to suppress competition and to obtain a monopoly in the purchase 
of live stock and the selling of dressed meats. The Circuit Court decided 
in favor of the Government, and this decision was affirmed by the Supreme 
Court, which held that it does not matter if a restrictive combination em- 
braces restraint and monopoly ol" trade within a single Stale if it also 
embraces and Is directed against commerce among the states and that 
the effect of such a combination was direct upon interstate 1 commerce. 

Hale v. Henkcl, 201 U. S. 43; McAUstcr v. Henkel, id. 90 (Tobacco 
Trust Cases). 

These cases grew out of an investigation by a Federal grand jury 
in the Southern District of New York of the American Tobacco Co. and 



38 REGULATION OF CORPORATIONS. 

the MacAndrews and Forbes Co., who, it was believed, were violating the 
Anti-trust laws. Hale and McAlister, officers of the companies, refused 
to produce books and papers and to testify. The Circuit Court adjudged 
them in contempt. Writs of habeas corpus were sued out, which, after 
hearing, were discharged. The Supreme Court affirmed the orders denying 
the writs. 

Nelson v. U. S. (and two other cases), 201 U. S. 92; Alexander v. 
V. 8. (and four other cases), 201 U. S. 117. (Paper Trust Cases.) 

This was a bill in equity filed by the Government against The General 
Paper Co. and twenty-three other corporations engaged in the manufac- 
ture and sale of paper, alleging that the defendants had entered into a com- 
bination and conspiracy to control; regulate, monopolize, and restrain 
trade and commerce in the manufacture of news-print, manila, fiber, and 
other papers in violation of the Anti-trust act, by making the General 
Paper Co. their general sales agent. 

In the Nelson cases the United States petitioned the Circuit Court 
for an order requiring the production before a special examiner of certain 
books, documents, and papers, and requiring defendants to answer certain 
questions. Refusing to obey the orders, the defendants were adjudged 
guilty of contempt. The Supreme Court affirmed the decision of the 
lower court. 

The Alexander cases were similar to the Nelson cases, except that 
there were no proceedings in contempt, appeals having been taken on be- 
half of the separate deiendants to the Supreme Court from the order of 
the Circuit Court requiring them to produce the books, papers and docu- 
ments requested and to answer the questions put to them. The Supreme 
Court declined to entertain^ the appeals on the ground of writ of jurisdic- 
tion. 

With regard to the latter case it may also be stated that on 
May 11, 1906, judgment was ordered in favor of the Government 
by the Circuit Court for the District of Minnesota, dissolving the 
combination and affording the Government all relief prayed for 
in its bill. A number of other cases have been successfully prose- 
cuted by the Department of Justice, but which did not reach 
the Supreme Court, including the case against the Federal Salt 
Co., The Nome Eetail Grocers' Association, The Otis Elevator Co., 
The National Association of Retail Druggists, and others, the 
details of which are given in a statement as to the civil and 
criminal cases instituted by the United States under the Sherman 
Act and the Act to Regulate Commerce, and which may be had 
upon application to the Department of Justice. Important pro- 
ceedings in similar cases are now being carried on in the courts 
by the Department of Justice, including a proceeding against the 
Standard Oil Company in consequence of a bill in equity filed in 
the Eastern District of Missouri, alleging that the Company is 
maintaining a combination in restraint of trade in the manufac- 
ture and sale of petroleum ; the case against the Reading Com- 
pany and others to dissolve a combination among the anthracite 
coal carrying- roads ; the case against the American Tobacco Com- 
pany and others ; the case against the Powder Trust, so-called, 
in all of which cases the Department of Justice is actually en- 
gaged, either in investigation of evidence in support of the alle- 
gations of the bill or is actually taking testimony in connection 
therewith. It appears from the records of the Department of 
Justice that sixteen bills in equity have been brought under the 
Sherman act during the administration of President Roosevelt, 
as against eleven bills during the entire time of the previous ad- 
ministrations ; that eighteen indictments have been brought 
under the same act. as against five indictments previously ; that 
seven convictions in criminal cases have been secured, as against 
a single conviction in the previous history of the administration 
of this law. A total of $96,000 has been collected in fines from 
the violators of the Anti-trust enactment. 



Enforcement of Act to Regulate Commerce. 

The following statement of the proceedings undertaken to 
enforce the Act to Regulate Commerce, with the Elkins and Hep- 
burn amendments, indicates the activity with which the De- 
partment of Justice, under the administration of President 
Roosevelt, has been proceeding in this important aspect of its 
duties. 

12 petitions to enjoin departure from published tariff : 
8 temporary injunctions granted and answers filed. 
3 injunctions granted. 
1 pending. 



REGULATION OF CORPORATIONS. 39 

11 petitions to enforce order of Commission: 

1 defendant complied and petition dismissed. 

4 petitions dismissed. 

2 injunctions granted. 
1 discontinued. 

3 pending-. 

4 petitions to compel filing of annual reports : 

1 dismissed. 

3 discontinued. 

2 proceedings to compel defendants to give testimony before 
Commission : 
Granted. 

1 petition to test law with reference to issuance of franks by ex- 
press companies : 
Pending. 

7 indictments for charging less than established rates : 

2 nol-prossed. 

5 pending. 

4 indictments for pooling : 
1 dismissed. 

3 nol-prossed. 

52 indictments for receiving rebates : 
18 convictions. 
1 acquittal. 

1 dismissed. 

2 demurrers sustained. 
30 pending. 

59 indictments for granting rebates: 

13 convictions ; fines imposed aggregating' $697,000. 

1 dismissed. 

2 nol-prossed. 
43 pending*. 

6 indictments for conspiring to obtain rebates : 

2 convictions; 1 case. 2 defendants fined $1,025 each; 1 case, 
defendants fined in the aggregate $25,000. Total fines im- 
posed,*$27.050. 
1 nol-prossed. 

1 acquittal. 

2 pending. 

1 indictment for conspiring to grant rebates : 
Demurrer filed and sustained. 

1 indictment for failure to file schedules: 
Conviction ;' fined $15,000. 

1 indictment for discrimination in distribution of cars : 
Demurrer filed and sustained. 

1 indictment charging conspiracy to violate Interstate Commerce 
Laws : 

Demurrer filed and sustained. 

Total: 129 indictments. 34 convictions, 2 acquittals, 8 nol- 
prossed. 5 demurrers sustained, 3 indictments dismissed, 
and 77 pending. 

Tn connection with the foregoing", important results have 
been obtained in the Supreme Court, the law having been finally 
tested in the following cases: 

Great Northern Railway Company r. United States, decided 
at the present term. This case involve-! a cmesticra of the proper 
construction of section 10 of t he Hepburn law of June 29, 1906. 
It mus contended by the Railroad Company thai said section 
should be construed as showing an Intention on the part of Con- 



40 REGULATION OF CORPORATIONS. 

gress to release from future prosecution all offenses committed 
against the Elkins Act which occurred prior to the 29th day of 
June, 1906, except such cases as were at that time actually pend- 
ing in the courts. The Supreme Court followed the contention 
of the Government and held that all offenses which were com- 
mitted against the Elkins Act might be prosecuted at any time 
within the statute of limitations even though such prosecutions 
were instituted after the 29th day of June, 1906. 

The Armour Packing Company v. United States, decided at 
the present term of the Supreme Court. This case involved the 
determination of two important questions of law : 

First. It sustained the contention of the Government that a 
prosecution for granting a concession in violation of the Inter- 
state Commerce Law with respect to the transportation of mer- 
chandise in interstate commerce, might be instituted and prose- 
cuted in any district through which the transportation was 
carried. It was, in effect, held by the court that in such an 
offense one of the essential elements of the crime was trans- 
portation. 

Second. The court also said that a contract between the 
carrier and the shipper 'for the transportation of freight for a 
reasonable length of time at the then established legal rate 
would not protect either the carrier or the shipper from future 
prosecutions under the law in case the common carrier changed 
the rate, as provided by law, and the .shipper and the carrier 
should still continue to observe the old rate as provided for in 
the contract. 

Swift & Co. v. United States. 

Cudahy Packing Company v. United States. 

Nelson Morris & Co. v. United States. 

Chicago, Burlington & Quincy R. R. Co. v. United States. 

Each of the above cases decided in favor of the Government, 
following the decisions in the Armour case. 

Interstate Commerce Commission v. Baird et al. 

Baird and other agents of certain coal carrying roads de- 
clined to give testimony before the commission in the anthracite- 
coal-rate investigation. On June 12, 1903, the Circuit Court for 
the Southern District of New York denied the motion to require 
the defendants to answer the questions. On April 4, 1904, the 
Supreme Court reversed the Circuit Court and remanded the case 
for further proceedings, holding that the questions propounded 
were proper and should have been answered. In this case fur- 
ther construction of the Elkins Law was made. 

United States v. Chespeake & Ohio Railway Company et al. 
In this case a petition was filed under the Interstate Commerce 
Act of the Elkins Law to restrain the Chespeake & Ohio Eailway 
Company from giving preferences and rebates in coal rates to the 
New York, New Haven and Hartford Eailroad Company. On 
February 19, 1904, an injunction was granted in the United 
States Circuit Court for the Western District of Virginia. On 
February 19, 1906, the Supreme Court affirmed the judgment of 
the Circuit Court. 

The following cases landing in the Supreme Court of the 
United States and undecided : 

The Chicago & Alton Railway Company et al. v. United 
States. On December 13, 1905, an indictment was returned 
charging a violation of the Act of February 4, 1887, as amended 
by the Elkins Act, for offering, granting and giving rebates to 
Schwartzchild & Sulsberger Company. Defendants were con- 
victed. On December 13, 1905, an indictment was returned under 
the Elkins Act for granting and giving rebates on freight. July 
6, 1906 : verdict of guilty. July 11, 1906 : the defendant corpora- 
tion fined $40,000.00, and individuals fined $10,000.00 each. Case 
appealed to the Circuit Court of Appeals of the Seventh Circuit 
on April 16, 1907. The judgment was affirmed by the Circuit 
Court of Appeals on January 27, 1908, and a Writ of Certiorari 
was allowed to the Supreme Court of the United States. The 
point involved in this case is whether the allowance by the 
Eailroad Company of $1.00 a car to the Schwartzchild & Suis- 



REGULATION OF CORPORATIONS. 41 

berger Company, at Kansas City, as and for a pretended rental 
and use of the Schwartzchild & Sulsberger tracks constituted a 
rebate to said company from the Alton Railway Company. 

The New York Central & Hudson River Railivay Company v. 
United States. On March 14, 1906, an indictment was returned 
under the Interstate Commerce and the Elkins Laws for grant- 
ing- rebates. On November 15, 1906, the Railroad Company was 
found guilty and sentenced to pay a fine of $18,000.00. The case 
was brought to the Supreme Court on a Writ of Error. This 
case involves numerous questions of law arising under the Elkins 
Act. 

New York Central & Hudson River Railway Company et al. v. 
United States; indicted on May 4, 1906; convicted October 17, 
1906; the railway company sentenced to pay a fine of $108,000.00. 
The case was brought to the Supreme Court on a Writ of Error. 

New York Central & Hudson River Railway Company v. United 
States. Indictment returned August 10, 1906, for violation ot 
the Elkins Act in offering, granting*, and giving rebates. De- 
murrer sustained to the indictment upon the ground that the 
railway company, although a party to the joint rate, did not 
file and publish this rate, as required by law. The case was 
appealed by the Government to the Supreme Court of the United 
States and has been advanced for hearing early next term. 

Important cases have been decided in the lower courts under 
this law. and. in addition, there are now pending on appeal, 
cases in which very larg-e sums of money have been imposed as 
fines, including the fine of over twenty-nine millions of dollars 
imposed on the Standard Oil Company in the following case : 

United States v. Standard Oil Company (District Court, 
Nortiiern Illinois). August 27, 1906, indictment returned charg- 
ing a violation of the Elkins Act in receiving rebates. November 
10. 1906, demurrer filed. January 3, 1907, demurrer overruled. 
March 4 to April 12, 1907, trial. April 13, 1907, verdict of guilty. 
August 3, 1907, sentenced to pay fine of $29,240,000. Appeal to 
Circuit Court of Appeals for the Seventh Circuit.* 

Further cases against the same company are pending. 
Another imposition of a heavy fine was that in the following- 
case against the Atchison, Topeka and Sante Fe Railroad Com- 
pany : 

United States v. Atchison, Topeka and Santa Fe Railway Com- 
pany (District Court, Southern California). January 9, 1907, in- 
dictment returned charging a violation of the Elkins Act in 
granting and giving rebates. April 17, 1907, demurrer filed. 
April 26, 1907, demurrer overruled. September 30, 1907, trial — 
verdict of guilty on all counts. November 7, 1907, sentenced to 
pay a fine of $330,000. 

Prosecutions arising out of these and other transactions have 
been begun against a considerable number of defendants, the 
full list of such proceedings being given in detail in the publica- 
tion of the Department of Justice before cited. 



RAILWAY REGULATION. 

"Work of the Interstate Commerce Commission. 

The railways of the country are the main highways of com- 
merce. Their ability to transport traffic measures the profitable 
production of this vast country. Xext to personal liberty and 
security the right to use these highways on equal terms is 
the most primary and fundamental right which the individual 
can possess. Upon this depends his ability to engage success- 
fully in any undertaking requiring the interchange of commod- 

* The opinion of the Circuit Court of Appeals was filed July 29 and 
reversed the judgment of the District Court and remanded the case for a 
new trial on the ground that certain errors of law were committed by the 
trial court. The Attorney-General will apply for rehearing in the Court 
of Appeals and, failing that, will seek to have its judgment reviewed and 
reversed or modified by the Supreme Court of the United States (see p. 49). 



42 REGULATION OF CORPORATIONS. 

ities. The marvelous growth of our railways, their incompar- 
able utility, the indispensable service they perform, the vast 
capital they represent, and the enormous amount of labor they 
employ, all require their subjection to adequate public control. 

"V . - 

History of Legislation to" Control Railways in the United 

• States. 

The first serious attempt at Federal railway control was the 
passage of the Act to regulate commerce, commonly known as 
tiie Interstate Commerce Law, in 18iJ7. The administration of 
this law was committed to a Commission of five members, of 
whom not more than three should Jjelong to the same political 
party. The number was increasqj^ in 1906 to seven members, 
with the requirement that not more than four should be of the 
same political party. The CopwnSSsion was intended to be, 
and, in fact has always been, sty,etly non-partisan. 

Under the original law and Us various amendments the 
Commission exercised such authority as was conferred upon it 
by the Congress, and the results were in the main highly satis- 
factory. The original law did not remedy all existing evils, 
but it did bring great relief. The publicity secured in respect 
of rates, contracts, and practices was alone sufficient to wipe 
out many of the worst existing transportation abuses, and 
the cases decided by the courts furnished the legal groundwork 
for a more perfect superstructure. Far from producing the 
disastrous results said to be inherent in Government regulation, 
the best interests of both railroads and shippers were subserved. 
Between 1887 and 1907 the railroads increased by about 80,- 
000 miles, more than three times the distance around th *\ :>.., 
and their operations, facilities, and equipment were augmented 
in an unprecedented manner, while tlie prosperity and weaitn 
of the country challenged the admiration of the world. 

Under the scrutiny of the courts it was found that the orig- 
inal law was defective, not in its promulgation of fundamental 
rights and duties so much as in the plans for its enforcement, 
and the experience of the Commission brought to light abuses 
and certain methods of circumventing the law which were not 
contemplated, or even known, at the time of its passage. It 
was found, for instance, that although it was unlawful to charge 
an unreasonable or discriminatory rate, and the Commission 
could award damages for such charge, it was without authority 
to require reduction of the rate for the future. Discrimina- 
tions were found to exist in collateral services rendered by the 
carriers, such as icing, refrigeration, elevation, storage and 
switching charges; and from the standpoint of so unci p 
policy there was perhaps nothing more offensive or destructive 
to private enterprise than the unfair and deadly competition 
engendered when the railroad exceeded its duty as a carrier 
and became also a purchaser and shipper over its own line — 
a frequent occurrence in the case of such staple commodities as 
grain, coal, and lumber. This practice, if allowed to exist, would 
easily have created in the railroads an absolute monopoly in the 
purchase and sale as well as in the transportation of all com- 
modities in which they might choose to become dealers. 

The Hepburn Act. 

Recognizing these defects and the necessity for their re- 
moval, the Republican Congress passed, and the Republican ' 
President approved, in June, 1906, the so-called Hepburn law. 
This enactment may, as applied to the general business interest 
of the country, including both consumer and producer, be termed 
without exaggeration the most fundamental, beneficial, and pro- 
gressive legislation adopted since the Constitutional amendments 
which followed the Civil War. It is most emphatically the an- 
nouncement in the law of the land of the doctrine, not only 
of the greatest good to the greatest number, but of absolute 
and complete justice to all. Justice may be attained in two 
ways — by prevention or by prosecution. Any law designed to 
benefit the public at large must look to prevention rather than 
prosecution, and although the Hepburn law provides penalties 
sufficient to act both as a deterrent and a punishment its 



REGULATION OF CORPORATIONS 43 

purpose is to provide for the prevention of abuses rather than 
their punishment after discovery. Damages will seldom com- 
pensate a man whose business has been destroyed by rebates 
allowed 'to a competitor. His safety lies in the absolute pro- 
hibition of those rebates. With these prefatory remarks in 
mind, the leading provisions of the Hepburn law may be briefly 
summarized as follows : 

1. It amended the Elkins law so as to restore the imprison- 
ment penalty for rebating, made the receiver of the rebate 
equally guilty with the giver, and provided for the recovery 
of threefold damages in case of acceptance of rebates. 
Even before this addition to the law, such vigorous prosecution 
of rebate cases had been conducted by the Republican Attorney- 
General, that the practice had become decidedly dangerous, and 
the statute was shown to be an effective instrument for the 
punishment and prevention of the crime. Through the enforce- 
ment of this Act many fines have been imposed upon carriers 
and shippers. As compared to rebates, nothing in the past had 
so powerfully aided the aggressions of industrial trusts, nothing 
connected with these combinations had been so offensive and 
destructive to the independent dealers. Within the past four 
years this evil has been thoroughly suppressed. This is per- 
haps the greatest benefit that could be conferred upon the 
general business interests of the country. It gives each man 
the same opportunity and puts the small de Uers on a footing 
of equality with their largest rivals so far as transportation 
charges are concerned. The salutary provisions of this law 
and the resolute and persistent efforts of the Attorney-General 
during the present administration have practically removed 
this greatest and gravest of railroad abuses. 

2. The Hepburn law gives the Commission power to reduce 
a rate found to be unreasonable or discriminatory. The primary 
necessity is equality of charges, but if an established sched- 
ule of rates, though actually observed in all cases and applied 
uniformly to everybody, is unreasonable because excessive, or 
unfair because it is discriminatory as between different locali- 
ties or different articles of traffic, then there must be some 
efficient way of changing the schedule so that it shall be reason- 
able and free from discrimination. Any remedy in the courts 
by way of an action is, in the nature of the case, impracticable, 
for it can only relate to the past and does not act as a pro- 
tection for the future. The amount involved in a particular 
transaction and the pecuniary consequences to a single individual 
are frequently so small in comparison with the cost of pro- 
tracted litigation in the courts, that any known civil remedy 
to right offenses of that description has proved futile and in- 
adequate ; and even if the person injured could secure damages 
for past transactions, the offensive rate would still remain in 
existence. Clearly the adequate remedy is a change in the rate 
itself, and this remedy is provided in the Hepburn law. To 
any shipper, large or small, it provides relief by a simple and 
inexpensive method, and not only allows him the damage he 
has suffered but also provides against a recurrence of similar 
offenses in the future. And as the free and equal use of rail- 
ways is a political right which it is the duty of the sovereign 
to enforce., under the procedure now in force the individual 
shipper is relieved of the burden of expensive and protracted 
litigation and that task is placed where it belongs — upon the 
public at large as represented by the Government. 

All the shipper is required to do is to show the fault to tin 1 
Commission. The Commission enters its order of relief, and 
failure of the currier to comply therewith becomes an offense, 
not against the shipper who instituted the action, but against 
the United States itself: unci if further legal proceeding 
necessary the strong arm of the Government, backed by its 
unlimited resources, proceeds to enforce the shipper's rights. 
As a practical matter, however, every order the Commission 
has entered since 1 he adoption of the Hepburn law has been and 
is now being obeyed l.\ the carriers. That its remedies an> 
appreciated and applied by the shipping public plainly appear 
from the fad that the number of formal proceedings instituted 
before 1 lie Commission since dune. 1906. almost equals the total 
aumber instituted between 1887 and 1900. 



44 REGULATION OF CORPORATIONS. 

3. The corrective orders of the Commission are now self -op- 
erative. Under the former procedure if a carrier elected not 
to comply with an order it was necessary to bring suit to require 
enforcement, and the litigation, including appeals, might con- 
sume several years, during all of which time the party injured 
was without relief, and perhaps if the relief sought was finally 
obtained it came too late to be available. Under the Hepburn 
law if a carrier believes that an order is not just and lawful 
it must assume the burden of securing its abrogation by the 
courts ; but it is to be assumed that under the administratio n 
of the law by an intelligent, expert, and non-partisan Com- 
mission very few cases will arise in which the carrier could 
convince the courts that the Commission's order of relief is 
unjust. As stated above, no such case has yet appeared. 

4. By requiring thirty days' notice of changes in rates, the 
Hepburn law has abolished the so-called "midnight tariffs," 
whereby, under legal forms, favored shippers were given advan- 
tages in rates which really amounted to rebates. All incidental 
services, such as icing, storage, refrigeration, elevation, and the 
like, are subject to the same restrictions as the transportation 
itself, and abuses in the use of these incidental services can 
no longer exist after they are discovered. Moreover, express 
companies, sleeping car companies, and pipe lines have been made 
subject to the law and removed from the field of private bar- 
gain. jSo far-reaching is the application of this general prin- 
ciple that even where the shipper performs some part of the 
transportation service, or furnishes some instrumentality in con- 
nection therewith, such as private cars or elevation of grain, 
the Commission may reduce the compensation allowed by the 
railroad in case it is found to be excessive. 

5. The Commission is authorized to prescribe the forms of 
any and all accounts, records, and memoranda kept by carriers 
subject to the Act, and to employ special examiners who shall 
have authority to inspect and examine any and all of such ac- 
counts. The work involved in prescribing a uniform system of 
accounting has not yet been completed, but it is possible to 
make a more or less accurate prediction of the benefits expected 
to accrue from this provision. The right to examine the car- 
riers' accounts at any and all times is perhaps the most adequate 
means yet suggested for the prevention and detection of re- 
bating and other illegal practices. The provision opens to the 
Government some degree of administrative supervision over the 
manner in which the carriers comply with the duties imposed 
by the law and, by localizing the responsibility for rigid en- 
forcement of the accounting sj^stem prescribed, correct applica- 
tion of funds would seem to follow almost automatically. It is 
further to be expected that a uniform and absolutely truthful 
system of accounts will not only make railroad reports reliable 
information for investors but will also produce a stability in 
railroad securities hitherto unknown. In other words, the 
market value of railroad securities will automatically adjust 
itself to the actual commercial value of the property, and cease 
to be a barometer of questionable operations of high finance. 

6. The Hepburn law absolutely prohibits a railroad from 
acting as a dealer in the commodities it transports. The mere 
statement of this provision indicates its fundamental necessity, 
justice, and importance. It restricts the railroad to its proper 
sphere of action — transportation, and relieves the public of that 
peculiarly unfair and destructive competition which results when 
the railroad becomes at once buyer, carrier, and seller. 

Perhaps no more honest and unbiased tribute has yet been 
paid to the wisdom of the administration which placed this 
law upon our statute books than is found in the Commission's 
report to the Congress for 1907, summarizing the improvements 
which have resulted from the rate law. The portion of the 
report referred to reads as follows : 

It is likewise true that the substantial and permanent benefits of 
this law are indirect and frequently unperceived even by those who in fact 
profit by its ; observance. It means much for the present and more for 
the future that the principles of this law have gained greatly in general 
understanding and acceptance. The injustice of many practices which 
were once almost characteristic of railway operations is now clearly ap- 
prehended, and an insistent public sentiment supports every effort for their 
suppression. By railway managers almost without exception the amended 



REGULATION OF CORPORATIONS. 45 

law has been accepted in good faith, and they exhibit for the most part 
a sincere and earnest disposition to conform their methods to its re- 
quirements. It was not to be expected that needed reforms could be 
brought about without more or less difficulty and delay, but it is unques- 
tionably the fact that great progress has been made and that further 
improvement is clearly assured. To a gratifying extent there has been 
readjustment of rates and correction of abuses by the carriers themselves. 
Methods and usages of one sort and another which operated to individual 
advantage have been voluntarily changed and it is not too much to say 
that there is now a freedom from forbidden discriminations which is 
actual and general to a degree never before approached. As this process 
goes on, as special privileges disappear, and favoritism ceases to be even 
suspected, the indirect but not less certain benefits of the law will become 
moye and more apparent. 

An incidental respect in which equality of treatment has been greatly 
promoted is in such matters as switching, terminal, demurrage, recon- 
signment, elevation, and other charges making up the aggregate cost of 
transportation. In the past it was often within the power of a carrier 
to waive charges of this nature in favor of particular shippers while 
collecting them from business rivals. Now the law and the rules of the 
Commission require all charges of this description to be plainly stated in 
the tariffs and to be applied with the same exactness and uniformity as the 
transportation rate itself. This is only one of the ways in which distinct 
advance has been made toward placing competing shippers in each locality 
upon a basis of equality in the enjoyment of public service. 

It is this general and marked improvement in transportation con- 
ditions that the Commission observes with special gratification. The 
amended law with its enforceable remedies, the wider recognition of its 
fundamental justice, the quickened sense of public obligation on the part 
of railway managers, the clearer perception by shippers of all classes that 
any individual advantage is morally as well as legally indefensible, and 
the augmented influence of the Commission resulting from its increased 
authority, have all combined to materially diminish offensive practices of 
every sort and to signally promote the purposes for which the law was 
enacted. 

The so-called hours-of-labor law, restricting the hours 
of labor of employees engaged either as trainmen or as tele- 
graph operators, became effective March 4, 1908, in spite of the 
earnest entreaties of railroad counsel for postponement of its 
effective date. The Commission is authorized to execute and en- 
force the provisions of this law. Although the great object of 
the Act is to promote the safety of travelers upon railroads, by 
limiting the hours of service of employees within reasonable 
bounds, it is none the less true that in actual operation it 
enforces humane and considerate treatment to employees as well 
as greater safety to the public. Upon the courage, fidelity, and 
accuracy of these employees depends the life of every one who 
travels by railroad. The propriety of this legislation, in respect 
either of the traveler or employee, needs no demonstration, 
but its enactment does furnish additional evidence of the desire 
of the Eepublican administration to enforce the rights of the 
employee so far as they fall within its jurisdiction. 

For enforcement of the criminal sections of the law the Com- 
mission must depend upon the cooperation of the Department of 
Justice. In this quarter the Commission has been sustained and 
encouraged in its difficult work and the law has been enforced 
with a degree of ability and success never before approached. 
Between the Department and the Commission the most cordial 
relations constantly obtain, and they have acted together in 
harmonious effort and with a common purpose to promote the 
public welfare. The last report of the Commission, submitted 
to the Congress in December, 1907, contains this significant state- 
ment : 

In connection with this work of enforcement of the law by means of 
criminal prosecutions, the Department of Justice and its various District 
Attorneys have, throughout the year, been active and effective. Almost 
without exception tbose prosecutions brought to trial have resulted in con- 
victions ; also a number of highly important cases have been won in the 
appellate courts. 

This tribute from an independent and non-partisan board to 
a Republican Attorney-General carries its own comment. 

During the past four years the safety appliance laws have 
also been the subject of many judicial decisions which materially 
strengthen and reinforce their requirements. This humane leg- 
islation has proved of incalculable benefit to railroad employees 
and the public generally. It safeguards their dangerous ami re- 
sponsible work, and at the same time gives added security to 
millions of travelers. These are immense benefits to the public 
and to hundreds of thousands of the most intelligent and de- 
serving working-men in the country. 



46 REGULATION OF CORPORATIONS. 

The Results Obtained. 

The total number of prosecutions brought in the courts to 
enforce the Interstate Commerce law under the six years ol 
President Eoosevelt's administration ending December 31, 1907, 
amounted to 50 per cent, more than the total number brought 
in the fourteen years prior to his administration during which 
the Interstate Commerce law was in force. In detail the prose- 
cutions under President Eoosevelt's administration and tne re- 
sults thereof are as follows : The Department of Justice has 
secured 126 indictments, upon which there have been 31 con- 
victions, 2 acquittals, 2 suits nolle prossed, demurrers sustained 
in 5, indictments dismissed in 3, and 74 are pending. 

The foregoing summary includes all actions brought during 
President Eoosevelt's administration, both prior and subsequent 
to the enactment of the Elkins law in 1903. As indicating cue 
efficiency of that legislation, it appears that 120 of the 126 in- 
dictments mentioned have been secured since the passage of that 
Act. Of these indictments 49 were for receiving rebates ; of 
that number 27 are still pending and convictions have been 
secured in 18 out of the remaining 22 cases ; the aggregate fines 
imposed were $29,520,075, or a total of $280,075 if the recent 
Standard Oil fine of $29,240,000 be eliminated from the list. For 
the granting of rebates 56 indictments have been secured, of 
which 40 are still pending. Convictions have been secured ici 
13 out of the remaining 16 cases, and the fines imposed aggregate 
$697,000. Six indictments have been secured for conspiring to 
obtain rebates. Two cases are pending and two convictions have 
been secured in which the fines imposed amount to $27,050. One 
conviction has been secured for failure to file tariff schedules 
and a fine of $15,000 imposed. 

A fair conception of the work performed by the Commission 
in the field, of regulation is not possible without reference to 
the results attained in respect to these cases in which formal 
complaint is not filed, nor proceedings of a formal nature pur- 
sued by the complainant. The public is not advised of the full 
extent of the work accomplished in securing, through correspond- 
ence, the voluntary adjustment by carriers of questions in 
dispute relating to interstate transportation, nor is the public 
cognizant of the extreme importance and value of the results 
attained. 

Through the medium of correspondence is secured the settle- 
ment of many matters extremely vexatious to shippers. The 
questions thus amicably adjusted are not alone questions affect- 
ing- the interest of individuals ; on the contrary, the effect of the 
action taken by carriers in the adjustment of these complaints 
is often of widespread interest and advantage to large communi- 
ties, if not indeed of vital importance to considerable sections 
of country. Controversies arising out of the relations between 
the carriers themselves are likewise, in many instances, pre- 
sented to the Commission for arbitration. The Commission is 
also called upon frequently by traffic officials of carriers to in- 
dicate what is considered to be the proper and lawful course to 
be pursued in respect to the application of rates or regulations 
affecting transportation. Thus it will be seen that many great 
benefits result from the adjustment or settlement, through cor- 
respondence, of questions informally submitted for investigation. 

During 1907 more than 4,300 complaints of this character 
were filed with the Commission, as against 503 in the year 1905. 
and 1,002 in the year 1906, showing an increase of more than 
400 per cent, over the preceding year. Upon such complaints 
reparation was allowed to injured shippers in 561 cases, aggre- 
gating about $104,700. All of the adjustments involved have 
been secured as the result of friendly intervention and corre- 
spondence by the Commission with the parties interested. These 
Informal complaints relate to every conceivable subject connected 
with the rates, methods, practices, and service of interstate car- 
riers. 

Perhaps no part of the Commission's work since the passage 
of the Hepburn law has been of more far-reaching importance, 
or will be more productive of equality of treatment and charges, 
than the reforms which have been instituted in respect to the 






REVtrLATTON OF CORPORATIONS. 47 

publication and tiling- of tariffs. In the past many tariff publi- 
cations were so voluminous, intricate, and complex that it was 
difficult even for an expert to determine a particular rate. Op- 
portunities to get business were met by the issuance of tariffs 
"expiring with this shipment;" by quotation of rates found in 
some other carrier's tariffs and applicable via another route ; by 
quotation of rates not found in any tarxfi ; by forwarding under 
regular tariff rates and refunding an agreed upon proportion 
thereof, and by forwarding under regular tariff rates and agree- 
ing to "protect" the rate of any competing carrier. Joint 
through rates were frequently in excess of the sums of the local 
rates between the same points, and the tariffs contained nota- 
tions that if lower combinations could be made upon given 
points, such lower combinations would apply. The net result 
of this situation was that no absolute rate was stated. The 
large shipper with a force of tariff experts at his command by 
means of his special knowledge of the possibilities of combi- 
nations, rates via competing routes, reconsignment and other 
practices could secure rates lower than those which appeared 
on the face of the tariffs to be in force, and perhaps the only 
person who paid the full tariff rate was the small shipper with- 
out the expert knowledge necessary to manipulations of this 
sort. 

Definiteness, clearness, and simplicity in stating transpor- 
tation charges, uniformity in applying rates so stated, and stable 
conditions are the ends aimed at in the law and enforced by 
the Commission. The rules which the Commission has promul- 
gated have eliminated the complexities and contradictions which 
in the past have characterized tariff construction and have re- 
sulted in securing the publication of a single rate for a given 
service applicable to the shipper without expert knowledge as 
well as to the industrial combination with a force of trained 
men at his command. Perhaps more than individual reductions 
of excessive rates, or convictions for rebate, this reform has 
brought about absolute equalitj' between shippers large and small 
in the payment of freight charges. Generally speaking the 
existence of a joint through rate in excess of the sums of" the 
locals was indefensible, and the Commission's rules upon this 
subject have resulted in the actual reduction of such higher 
through rates in thousands of instances. The magnitude of the 
work is suggested by the fact that in the 12 months ended No- 
vember 30, 1907, there were tiled with the Commission 220.982 
tariff publications, all containing changes in rates and rules 
governing transportation, and about 400. 000 notices of concur- 
rence in tariffs. It cannot be doubted that the reformation of 
the railroad tariffs of the country in such shane that the legal 
rate can be easily ascertained by a person of ordinary intel- 
ligence will be perhaps of as much benefit to the carriers ami 
their agents as it is to the public at large. 



THE COFRTS AND THE CORPORATIONS. 

The work of the Department of Justice and of the Inter- 
state Commerce Commission with reference to corporations is 
stated in the chapters relating to those branches of the Govern- 
ment, but the following summarization of the important cases 
acted upon by the courts during the past four years will be of 
additional value in this connection. 

The Act of June 29, 190G, known as the Hepburn Kate Law. 
amended and strengthened the Interstate Commerce laws re- 
specting rebates in interstate transportation, and in many other 
important particulars, embracing within those laws oil pipe lines, 
express companies, and sleeping car companies as common car- 
riers in interstate transportation, prohibiting interstate passes 
or free transportation, prohibiting railroads to transport from 
one State or Territory to another, or to a foreign country, com- 
modities in the production or manufacture of which they are 
interested directly or indirectly, giving the Interstate Commerce 
Commission power to determine and enforce .just and reasonable 
maximum rates, and enlarging the powers of the Commission 



48 REGULATION OF CORPORATIONS. 

to elicit and compel information from railroad carriers as to 
their' capitalization, indebtedness, earning, operation, etc. 

Important cases are now pending in the courts relative to va- 
rious features of this law, especially the commodity clause, the 
power of the Commission to fix rates and to compel the pro- 
duction of information. These cases are under the special con- 
trol and direction of the Attorney-General, and will receive his 
personal attention in the argument in the Supreme Court when 
they reach that tribunal. 

In the Beef Trust Case the Supreme Court held that a com- 
bination of a dominant proportion of the dealers in fresh meat 
throughout the United States, in order to regulate prices and re- 
strict shipments, is an illegal combination within the prohibition 
of the Sherman Anti-Trust law. (Decided January 30, 1905 ; 
196 U. S., 375.) 

In the cases against the New York, New Haven & Hartford 
and the Chesapeake & Ohio Railway Companies, the important 
point decided by the Supreme Court was that a carrier under 
the Interstate Commerce Act cannot contract to sell and trans- 
port and deliver a certain commodity when the transaction 
amounts to granting indirectly a less rate than the published 
rate for the transportation ; that, whatever the device or method, 
such a contract is illegal under the Interstate Commerce laws if 
the amount charged for transportation is less than the pub- 
lished rates. (Decided February 19, 1906; 200 U. S., 361.) 

In the recent case of the Great Northern Railway Company v. 
United States (decided February 24, 1908, 203 U. S., 452), the 
Supreme Court adopted the Government's construction of section 
10 of the Hepburn law, and held that the provision therein con- 
tained relating to pending prosecutions was only intended to save 
methods of procedure provided for by the old law, and did not 
operate to release prior offenders from prosecution. The result 
of this decision enabled the Government to prosecute all 
offenses which had been committed against the Elkins Law 
prior ,to the passage of the Hepburn Law, provided, only, 
such offenses were not barred by the statute of limitations 
when instituted. 

In the other recent cases of the packing companies (de- 
cided March 6, 1908, 209 U. S., 56), several important ques- 
tions were decided in favor of the Government. 

1. It was held that a "device" to obtain rebates, in order 
to come within the prohibition of the Interstate Commerce 
Law, including the Elkins Act, need not necessarily be fraud- 
ulent, but that the term "device" includes any plan or con- 
trivance whereby merchandise is transported for less than the 
published rate, or whereby any other advantages may be given 
to or discriminations practiced in favor of the shipper. 

2. It was held that the shipper and the carrier could not 
make a "contract" for the transportation of freight at the 
legal rate and for a reasonable length of time which would 
protect the shipper from a proscution at the instance of the 
Government on the charge of receiving a rebate in the event 
that the carrier subsequently and during the life of the con- 
tract advanced the rate as provided b}^ law and notwithstanding 
such advance the shipper still continued to ship under his 
contract rate. 

3. It was also held in this case that in prosecutions for 
violations of the Elkins Act the Government could prosecute 
either the carrier or the shipper in any judicial district through 
which the transportation was conducted ; in other words, that 
the carriage of the merchandise was a necessary and indis- 
pensable element of the offense defined by the law. This 
was a most important question to have settled for our guidance 
with respect to future prosecutions. 

In the case of the Government against the Standard Oil 
Company " of Neiv Jersey as an illegal combination in re- 
straint of trade, a preliminary victory was won by the Gov- 
ernment respecting jurisdiction, the power of Congress to au- 
thorize the process of a Federal Court to run outside its dis- 
trict, and other related -questions, by a decision of the Cir- 
cuit Court in the Eastern District of Missouri, March 7, 1907. 
(U. S. v. Standard Oil Co., Fed. Kep., 290) 



1 



REGULATION OF CORPORATIONS. 49 

This case, which is the usual suit in equity under the Sher- 
man law to dissolve an illegal combination is steadily proceed- 
ing on the taking of testimony, and it is expected will be 
heard by the Circuit Court within the next six months. The 
Government is also conducting other proceedings against the 
Standard Oil Company, including a prosecution for taking re- 
bates on shipments of oil from the Western Pennsylvania and 
New York oil fields to New England points, which is pending 
and will soon be tried in the Circuit Court of the United 
States for the Western District of New York. 

In the case of the United States against the Standard Oil 
Company of Indiana, in which a fine of $29,240,000 was imposed, 
the United States District Court for the Northern District of 
Illinois held that under contracts by a shipper for through 
interstate shipments solely with one railroad company, although 
such shipments passed over the lines of other companies, a 
common arrangement between the carriers for a continuous car-' 
riage is sufficiently proved, and that under such a contract and 
arrangement, where the shipper obtained a concession from the 
lawful published rates in interstate shipments in violation of 
the Federal law, the fact that another railroad or route may 
have had a published rate about as low is immaterial, the 
shipper is chargeable with knowledge of the lawful rate where 
it has been published and filed in accordance with law and 
is accessible to the public, unless he is misled after using 
proper diligence to ascertain the rate ; and, finally, that under 
the provisions of the Elkins Act forbidding the giving or re- 
ceiving of rebates, where a shipper has been continuously re- 
ceiving rebates the Government is not limited to a prosecution 
for a single offense, but each shipment made at the illegal rate 
constitutes a separate offense, and under established rates on 
car lots, each car constitutes a separate shipment. (Decided 
August 3, 1907; 155 Fed. Rep., 305.) 

The judgment in this case was reversed in the Circuit Court 
of Appeals and the case remanded with instructions to grant a 
new trial by an opinion filed July 22, 1908, on the grounds 
that the trial court erred in its rulings on the admission and 
exclusion of evidence bearing on the shipper's intent and its 
actual knowledge of the lawful published rate ; that the trial 
court also erred in making each carload and not an entire ship- 
ment the unit or integer to determine the number of offenses, and 
abused the discretion vested in the court in imposing* the fine. 

It is the earnest contention of the Government that the 
Court of Appeals mistook the state of the case shown by the 
record as to the admission and exclusion of evidence, and ad- 
judged the other propositions of law incorrectly in view of 
the authorities. Immediate steps will be taken to have this 
decision reconsidered and reviewed in all the ways known to 
the law. 

On July 29. the Attorney-General issued the following state- 
ment regarding the case : 

"The Government will make every effort in its power to secure a 
revision of the recent decision and opinion of the Circuit Court of Appeals 
for the Seventh Circuit in the case of the Standard Oil Company of 
Indiana, either by the Court of Appeals itself, or, if necessary, by the 
Supreme Court of the United States. The gentlemen who have been in 
consultation with me all unite in my opinion that in the interest of the 
impartial and effective administration of our laws, such action on the 
part of the Government is imperatively demanded by the circumstances 
of the case and the possible consequence if this opinion should stand as 
authority without question by the government. 

"To this end an application for a reargument of the case and a 
motion for a modification of the opinion will be submitted to the Circuit 
Court of Appeals in behalf of the United States at the earliest possible 
moment. Other appropriate steps will be taken afterwnrd, their character 
to be determined by the Court's action upon this application. 

"The pending prosecutions in which the giving or receiving of rebates 
or offenses of like character are charged will be pressed to trial and 
judgment by the government with all possible energy and as promptly as 
may be practicable. 

"In the view of the Government's legal advisers the reversal of the 
judgment in the case recently decided in no way affects the merits of 
that controversy or the necessity and duty of bringing to punishment 
if possible in this and any other cases any individual or corporation shown 
to have evaded or defied the laws." 

In United stales r. 1/ cA ndrews & Forbes <<>.. an indictment 
under sections 1 and 2 of the Sherman Anti-Trust law of 



50 REGULATION OF CORPORATIONS. 

one of the constituent members of the Tobacco Trust, it was 
decided on demurrer, among other points, that a corporation 
may be liable criminally for conspiracy, and that an indict- 
ment under the anti-trust law may charge all who aid in the 
commission of the offenses as principals, and a corporation and 
its officers who personally participated in committing the offenses 
may be joined as defendants, although their acts may be sep- 
arate and not done at the same time, and that to bring any 
given case or scheme within the law, the restraint of trade 
need not amount to a total suppression, nor the attempt at 
monopoly to a complete monopoly, but it is sufficient if the 
necessary operation tends to restrain interstate commerce and 
to deprive the public of the advantages flowing from free com- 
petition. (Decided December, 1906; 149 Fed. Kep., 823.) The 
case is now pending in the Supreme Court, having been taken 
there on a writ of error by the defendants, who were convicted 
in the trial court. 

In the proceedings preliminary to the Paper Trust suit and 
the Tobacco Trust prosecution, the United States won a very 
important victory by compelling certain witnesses to testify under 
personal immunity, without protecting other persons or corpo- 
rations, with the result that in the Paper Trust case the final 
decree provided for its dissolution, and the Tobacco Trust prose- 
cutions are proceeding, along with a suit in equity to dissolve 
that combination, with the aid of the testimony and infor- 
mation of which the Government compelled the production. 
(Paper Trust Cases, 201 U. S., 92, 117 ; decided March 12, 1906 ; 
Tobacco Trust cases, id., 43, 90, decided same day.) 

In the suit in equity to dissolve the Tobacco Trust the testi- 
mony has all been taken, and the argument before the Cir- 
cuit Court has just been completed, May, 1908. 

The suit against the Anthracite Coal Trust is now ready to 
be pressed vigorously, and active proceedings will, be under- 
taken forthwith and maintained in the Federal Court for the 
Eastern District of Pennsylvania, where the bill to dissolve the 
combination was filed. 

In the case of the United States v. The New York, New 
Haven and Hartford Railroad Company et al., recently insti- 
tuted in the United States District Court for the District of 
Massachusetts, the Government seeks to enjoin that company 
from exercising further control through stock ownership over 
the Boston and Maine Railroad Company and to prevent the 
New Haven road from controlling the various trolley lines 
paralleling said road in the States of New York, Connecticut, 
Rhode Island and Massachusetts. The bill charges the New 
Haven road with combining and attempting to combine under 
one common control the various railroad systems and electric 
railway S3'stems in New England. 

It will thus be seen that, in obedience to the demand of 
the people and the legal and economic policy reflected in the 
Sherman law, the Republican administration, legislative and 
executive, has been steadily proceeding during the last four 
years to maintain its record of uncompromising prosecution 
against the great combinations which are violating the law. 
It is clear that the Government policy and efforts have been 
to reach the strong and vast aggregations of power and cap- 
ital, rather than to avoid enforcement of the law against them 
and proceed against minor and less culpable defendants, and 
the foregoing review shows also that the results achieved have 
been commensurate with the importance of the subject and with 
the efforts of the Government. 



THE CAST-IRON PIPE CASE. 

Judge Taft's Decision and its Important Relation to the 
Trust Question. 

No list of judicial decisions declaring the power of Congress 
over combinations in restraint of trade is complete without 
naming the Addyston Pipe & Steel Co. case. It was one of 
theearlv and most important successes of the Federal Govern- 
ment W attempting to enforce the Sherman Anti-trust Act, 



REGULATION OF CORPORATIONS. 51 

and was a signal judicial victory for Judge William H. Taft, 
for the Supreme Court in deciding the case affirmed the Cir- 
cuit Court of Appeals and adopted the reasoning and quoted 
a considerable portion of Judge Taft's opinion in deciding the 
case in the lower court. The Circuit Court had decided the 
case against the Government in a long and exhaustive opinion, 
so that the decision of the Appelate Court, delivered by Judge 
Taft, which the Supreme Court held was the law was a path- 
breaking one and blazed the way for later decisions which have 
settled beyond all dispute the wide-reaching power of Congress 
under the Interstate Commerce clause of the Constitution. When 
the case was first tried, over eleven' years ago, the power of 
Congress was not clearly understood, even in the minds of law- 
yers and court. 

The history of the case, briefly stated, is as follows : The 
Attorney-General of the United States filed a bill in equity 
against six corporations engaged in the manufacture of cast- 
iron pipe, charging them with a combination and conspiracy 
in unlawful restraint of interstate commerce in such pipe in 
violation of the "Anti-trust Law." The companies manufactured 
iron pipe in four different States and they divided their sales 
territory into six districts, and agreed not to bid against each 
other, though fictitious bids were put in at prices higher than 
was bid by the member of the combination in whose territory 
the particular contract to be bid on was located. The Circuit 
Court dismissed the bill, basing its decision mainly on the case 
of United States vs. E. C. Knight Company, wherein the United 
States Supreme Court dismissed a bill filed under the anti-trust 
law, which sought to enjoin the defendants from continuing a 
union of substantially all the sugar refineries of the country for 
the refining of raw sugars. The Supreme Court held the monop- 
oly thus effected was not within the law, because the contract or 
trust agreement related only to the manufacture of sugar and 
not to its sale, and it was not within the power of Congress to 
regulate manufacture within a State. The trial court held the 
cast-iron pipe case was governed by the reasoning in the sugar 
trust case, and decided against the Government. The case was ap- 
pealed to the Circuit Court of Appeals, and was heard by Mr. Jus- 
tice Harlan, of the Supreme Court, and Circuit Judges Taft and 
Lurton. This court held the combination was unlawful, both at 
common law and under the Sherman act of 1890 against trusts 
and monopolies. 

Judge Taft's opinion, delivered February 8, 1898, was hailed 
by the Government as a great victory in its fight? against monopo- 
lies, and on December 4, 1899, the Supreme Court affirmed Judge 
Taft's decision and adopted his reasoning and the very lang'uage 
in his opinion. 

The closing paragraph of Judge Taft's opinion is worth quot- 
ing entire : -'Much has been said in argument as to the enlarge- 
ment of the Federal Government functions in respect of all trade 
and industry in the States if the view we have expressed of the 
application of the anti-trust law in this case is to prevail, and as 
to the interference which is likely to follow with the control 
which the States have hitherto been understood to have over con- 
tracts of the character of that before us. We do not announce 
any new doctrine in holding either that contracts and negotia- 
tions for the sale of merchandise to be delivered across State 
lines are interstate commerce, or that burdens or restraints upon 
such commerce Congress may pass appropriate legislation to pre- 
vent, and courts of the United States may in proper proceedings 
enjoin. If this extends federal jurisdiction into fields not before 
occupied by the general government, it is not because such juris- 
diction is not within the limits allowed by the Constitution of 
the United States." 

Not one of the least of Judge Taft's services to his country 
was his illuminating and record-making decision in the Addy- 
ston Pipe and Steel Company case. 

One vital, dominating fnet confronts tlie Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 

6 



61 REGULATION OF CORPORATIONS. 

THE DEMOCRATIC PLAN OP TRUST REGULATION IS THE 
PLAN PROPOSED BY STANDARD OIL MAGNATES. 

The plan which the Democratic national platform of 1908 
proposes for the control and regulation of trusts and corpora- 
tions engaged in interstate commerce is precisely that proposed 
and publicly recommended by the Standard Oil President and 
Vice-President. Moreover, it is certified to by Mr. Bryan's paper, 
the "Commoner," as the genuine Standard Oil plan. 

The "Commoner," in its issue of October 31, 1902, says : 

The plan of vesting in the Federal Government exclusive control of 
trusts was not originated by the present leaders of the Republican party. 
John D. Rockefeller in his testimony before the industrial commission, 
when asked what legislation would be advisable, said : "First, federal legisla- 
tion under which corporations may be created and regulated, if that were 
possible." Vice-President Archbold, of the Standard Oil Company, said : 
"The next great and, to my mind, inevitable step of progress in the direc- 
tion of our commercial development lies in the direction of national or 
federal corporations." Henry H. Rogers, a Standard Oil magnate, indorsed 
Mr. Archbold's suggestion. 

The Plan Proposed by Standard Oil Magnates in 1899. 

The recommendations of the Standard Oil magnates referred 
to by Mr. Bryan's "Commoner" and apparently followed in the 
Democratic platform of 1908, will be found in detail in Vol. 1 
of the Eeport of the Industrial Commission. On page 797 Mr. 
Rockefeller is asked : "What legislation, if any, would you 
suggest regarding industrial combinations?" His answer is: 
"First, Federal legislation under which corporations may be 
created and regulated, if that be possible ; second, in lieu 
thereof, State legislation as nearly uniform as possible encour- 
aging combinations of persons and capital for the purpose of 
carrying on industries, but permitting State supervision, not 
of a character to hamper industries, but sufficient to prevent 
frauds upon the public." 

(Signed) JOHN D. ROCKEFELLER. 

On page 565 of the same volume, Mr. Archbold, Vice-Presi- 
dent of the Standard Oil Company, says : "If you should ask 
me, gentlemen, what legislation can be imposed to improve the 
present conditions, I answer that the next great, and to nry 
mind, inevitable step of progress in the direction of our com- 
mercial development lies in the direction of National or Fed- 
eral corporations. * * Lack of uniformity in the laws of 
various States, as affecting corporations, is one of the most vex- 
atious features attending the business life of any great corpor- 
ation today, and I suggest for your most careful consideration, 
the thought of a Federal Corporation law." 

The Plan Proposed by tbe Democratic Platform in 1908. 

The portion of the Democratic national platform of 1908 
which offers the plan of the Democratic party with reference 
to trust regulation is as follows : 

"We favor the vigorous enforcement of the criminal law 
against guilty trust magnates and officials, and demand the en- 
actment of such additional legislation as may be necessary to 
make it impossible for a private monopoly to exist in the 
United States. Among the additional remedies we specify three : 
First, a law preventing a duplication of directors among com- 
peting corporations ; second, a license system which will, with- 
out abridging the right of each State to create corporations, 
or its right to regulate as it will foreign corporations doing 
business within its limits, make it necessary for a manufac- 
turing or trading corporation engaged in interstate commerce 
to take out a Federal license before it shall be permitted to 
control as much as twenty-Ute per cent of the product in which 
it deals, the license to protect the public from watered stock 
and to prohibit the control by such corporation of more than 
fifty per cent of the total amount of any product consumed in 
the United States ; and, third, a law compelling such liceo^-rd 
corporations to sell to all purchasers in all parts of the coun- 
try on the same terms, after making due allowance for cost of 
transportation." 



REGULATION OF CORPORATIONS. 53 

The Republican platform, instead of proposing to give special 
favors to certain corporations in the form of Federal licenses 
as proposed by the Standard Oil magnates and the Democratic. 
party, proposes uniform and equal enforcement against all cor- 
porations, g-reat or small, of existing law and such further 
laws as may be necessary. The plank of the Republican platform 
of 1908 is as follows: 

"The Republican Part}' passed the Sherman Anti-trust law- 
over Democratic opposition and enforced it after Democratic 
dereliction. It has been a wholesome instrument for good in 
the hands of a wise and fearless administration. But experience 
has shown that its effectiveness can be strengthened and its real 
objects better attained by such amendments as will give to the 
Federal Government greater supervision and control over and 
secure greater publicity in the management of that class of 
corporations engaged in interstate commerce having power and 
opportunity to effect monopolies." 

It must be, at least, a pleasing surprise to the Standard 
Oil Company, after its recent experience with Republican offi- 
cials in enforcement of existing la»ws, to find the Democratic 
platform declaring for the very legislation publicly recom- 
mended by its President and Vice-President in 1899 and certified 
to by Mr. Bryan's "Commoner" in 1902, as the genuine Standard 
Oil plan in behalf of corporations. 



The biggest corporation, like the humblest private citi- 
ezn, must be held, to strict compliance with the will of the 
people as exnressed in the fundamental law. — President 
Roosevelt at Cincinnati, Ohio, September 20, 1902. 

The tariff affects trusts only as it affects all other inter- 
ests. It makes all these interests, large or small, profitable; 
and its benefits can be taken from the large only under pen- 
alty of taking them from the small also. — President Roosevelt 
at Minneapolis, April 4, 1903. 

Under present-day conditions it is as necessary to have 
corporations in the business world as it is to have organiza- 
tions — unions — among - wage-wOrkers. We have a right to 
ask in each case only this; that good, and not harm, shall 
follow. — President Roosevelt at Providence, R. I., August 23, 
1902. 

Mr. Bryan's whole system of remedies for the evils that 
both Mr. Roosevelt and he and many others recognize, is 
based on his distrust of the honesty, courage and impar- 
tiality of the individual as an agent on behalf of the people 
to carry on any part of government and rests on the propo- 
sition that our present system of representative govern- 
ment is a failure. He would have government ownership 
of railways because he does not believe it is possible to 
secure an interstate commerce commission that the "money 
power" cannot and will not ultimately own. He would have 
the initiative and referendum because he distrusts repre- 
sentative government and has no confidence in the ability 
of the people to find men who will conscientiously, and 
free from the influence of the "money power," represent them 
in preparing and voting legislation. He would take away 
from courts, because he distrusts the ability of judges to 
resist the malign influence of the "money power," the power 
to enforce their own orders until a jury is called to tell 
the court whether the order has been disobeyed, and thus, 
in practice, though not in theory, the jury would come to 
pass on the correctness and justice of the court's order. 
—Hon. Wm. H. Taft, at Columbus, Ohio. 

The Democrats are a party having no solidarity, uniting 
elements that are as unmixable as oil and water, and when 
they come to make a government, should they ever be elected 
to power, the administration would become as nerveless 
as a man stricken with paralysis, because the radical dif- 
ference between the elements necessary to make up the 
party would be so great as to produce perfect stagnation 
in legislative provision for the emergencies which might 
arise. The Democratic party today, as organized, is nothing 
but organized incapacity. Neither element of the party 
would have a sense of responsibility strong enough to over- 
come its antagonism to the principles upheld by the other 
faction, were it to come into power. — Hon. Wm. H. Taft, tit 
Montpelier, Vermont. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TV IT'S 
ELECTION.— New York World. 



THE MONEY PANIC OF J 907. 



The panic of 1907 was financial, not industrial or commercial. 
The country was at the high tide of industrial and commercial 
activity. The great manufacturing industries and those related 
thereto were making their highest records. The value of manu- 
factures shown by the census of 1905 (including its estimate for 
customs work and repairing) aggregated nearly 17 billion dollars, 
against 13 billions in 1900, 9 1-3 billions in 1890, and 5 1-3 billions 
in 1880. The imports of manufacturers' materials in the fiscal 
years 1906 and 1907 so much exceeded those of 1905 as to make it 
perfectly apparent that the manufacturing activities of those 
years were still in excess of those recorded by the census of 1905. 
Not only were imports of manufacturers' materials higher in 1907 
than ever before, but exports of manufactures were also in excess 
of any former year, thus 'again indicating unusual activity in 
manufacturing ; while the fact that the quantity of pig iron pro- 
duced, the quantity of coal mined, the quantity of freights car- 
ried on the Great Lakes and on railroads, the quantity of grain, 
flour, cotton, live stock, meats and other commercial staples ar- 
riving at the great interior centers and departing therefrom was 
also greater than ever before, gives further evidence that the 
commercial as well as industrial conditions of the early and mid- 
summer months of 1907 were at high-water mark. The railroads, 
with all their greatly increased facilities in trackage, in cars and 
equipment, were unable to respond to the business activity, and 
James J. Hill, a distinguished Democrat, who had declared in 
November, 1906, that the traffic congestion exceeded imagination, 
and that. there was neither money enough nor rails enough in the 
world to build track enough to carry the traffic offered, declared 
again in 1907 that the railroads would need 1,100 million dollars 
3 T early for five years for construction work. 

The demands for money for conducting and enlarging these 
great industrial, commercial, and transportation enterprises grew 
apace. In January, 1907, the 'Chicago and Alton sold $6,000,000 of 
notes, the Western Indiana $5,000,000, the Southern $15,000,000, 
New York Central $50,000,000, and the Chicago and Northwestern 
voted to issue $25,000,000 of stock. In February the Eock Island 
sold $6,500,000 of notes, the Lackawanna Steel Company $5,000,- 
000, the Interborough Rapid Transit Company of New York $10,- 
000,000, the Pennsylvania $60,000,000, the Tidewater Eailroad 
$10,000,000. New York city sold $30,000,000 of bonds and the 
New Haven road $28,000,000 of bonds. In the succeeding months 
the issues of securities of this character continued until by the 
middle of the year the total thus issued in sums sufficiently large to 
be easily noted aggregated more than a thousand million dollars of 
securities thus placed upon the market, and this continued into 
August and September, despite the fact that the scarcity of 
money resulted in the actual issue of but one billion dollars' 
worth of railway notes, stocks and bonds out of a total of more 
than iy 2 billions authorized. But the world's losses of capital by 
wars, coupled with the speculative investment, rendered loans 
more and more difficult 

The amount of money in circulation in the United States was 
nearly three billion dollars, and including the money in the 
Treasury exceeded three billions, and the amount of per capita 
circulation was larger than ever before, being over $32, as against 
a little over $21 in 1896. Nine-tenths of the business was as usual 
in times of financial peace, being transacted by the use of checks, 
script, notes and other financial paper. Millions of holders of sur- 
plus money had deposited the surplus in banks, which in turn had 
loaned the legitimate proportion of their deposits, and these had 
been in turn deposited by those to whom the loans were made or 
by others, so that the aggregate record of deposits in all banks 
and loan and trust companies of the country was in 1907 
over 13 billions of dollars, while the actual amount of money in 

64 



TEE MONET PANIC OF IM. 56 

the country was, as above shown, but about three billion dollars. 
It goes without saying that any sudden incident which would 
startle and alarm these millions of depositors whose bank records 
showed an aggregate of 13 billions of dollars would cause them 
suddenly to rush to the banks and demand their money, thus cre- 
ating not merely a panic, but rendering the banks physically un- 
able to meet their demands, since the credits to depositors 
amounted to more than four times the amount of money actually 
in the country, including both that in circulation and the amount 
held by the Treasury. 

In October occurred a series of incidents sufficient to cause 
just the sort of alarm indicated. The three Heinze Brothers, large 
operators in Wall street, failed in an attempt to manipulate cer- 
tain copper stocks, and this resulted in a run upon the Mercantile 
National Bank, of which one of the brothers was president. The 
collapse of the copper pool and the resulting loss of confidence in 
the Heinze Mercantile National Bank led to a distrust of certain 
other banks, and this being followed by the compulsory resigna- 
tion of certain bank officers increased the alarm of depositors, 
and runs were begun, resulting in demands which were far in ex- 
cess of the ability of banks instantly to meet. As the panic spread 
to other parts of the country other millions of depositors de- 
manded their hundreds of millioais of deposits, and again in ex- 
cess of the immediate ability of the banks to respond, although 
practically all of them would have been, under ordinary condi- 
tions, able to meet the ordinary calls from their depositors. This 
condition was met in part by additional deposits of public moneys 
in national banks, as shown by extracts on subsequent pages from 
the report of the Secretary of the Treasury to Congress, appended 
hereto ; in part by the issuance of clearing-house certificates, in 
part by the refusal of banks to pay on any one day more than a 
small percentage of the sum due each depositor, and in other 
cases by the declaration of a two weeks' holiday by the governors 
of certain States, thus holding in check the momentary alarm, 
and by January the banks of the country had returned to a cash 
basis and to full cash payment of such calls as were made upon 
them by their depositors. 

The President in his message of December, 1907, recommended 
legislation providing for a more elastic currency by issuing emer- 
gency circulation, secured by State and municipal bonds. This 
recommendation gave rise to the introduction of various financial 
bills, among which were the Aldrich bill, introduced in the Sen- 
ate, and the American Bankers' Association bill, the Fowler bill, 
the Vreeland bill, and many other bills, introduced in the House.. 
There was a spirited discussion in both houses of Congress, and 
wide differences of opinion prevailed as to the merits of the 
various plans. This resulted at the close of the session in a 
compromise bill, which was signed by the President on May 
30. This bill was designed to prevent the recurrence of the 
financial troubles experienced in the autumn of 1907, among 
which was the need of additional currency for emergency pur- 
poses. The bill. as passed, stated briefly, provides for the issu- 
ance of emergency currency on State and municipal bonds at 90 
per cent of the unimpaired capital and surplus of the bank, and 
other securities at 75 per cent of their cash value. The applications 
for the issue of emergency currency are to be made to the 
Comptroller of the Currency and submitted by him to the Sec- 
retary of the Treasury, the securities pledged for the issue of 
such currency to be guaranteed by the national currency asso- 
ciations. This legislation marks a very liberal and progressive 
step forward in the securing of an elastic currency. At the 
same time the Treasury is amply safeguarded by the guaranty 
of the associations, which practically eliminates all hazard as 
to the soundness of the security. The high rate of 5 per cent 
to 10 per cent per annum is expected to retire the circulation 
when the emergency is past. 

The able management of the Secretary of the Treasury in util- 
izing public funds to stay the incipient panic of March. 1907. and 
his timely preparation for anticipating the need of money for 
crop moving purposes by depositing funds early in the national 
banks to prevent a tightness in the money market, deserves 
high commendation. It was an action of prevention, instead of 



56 THE MONET PANIC OF 1901 

waiting for a cure, which latter always involves cost and dis- 
aster. When the panic reached most dangerous proportions in 
New York the Secretary of the Treasury hastened there, and 
with the prompt cooperation of the bankers $150,000,000 were 
pledged to stay the progress of the panic. Of this sum about 
$40,000,000 were pledged in a temporary way by the United States 
Treasury. Further aid was extended by the Secretary of the 
Treasury issuing 3 per cent certificates of indebtedness and 
Panama bonds. He permitted the banks to take out circulation on 
these securities, and also allowed them to substitute bonds ac- 
ceptable for savings bank investments for Government bonds 
pledged for public deposits, provided the released bonds were used 
for securing additional bank note circulation. In this way some 
$86,000,000 in national bank notes were issued from October 1, 
1907, to January 1, 1908. This action was severely criticised by 
many who did not understand the conditions that required it. 
His remarkable reply to Congress, giving reasons to justify the 
steps he had taken to relieve the situation, won the approbation 
of Congress as well as that of the country. 

In addition to emergency legislation, a commission was ap- 
pointed, known as the "National Monetary Commission," com- 
posed of nine members, to inquire into and report to Congress 
at the earliest practicable date what changes are necessary or 
desirable in the monetary system of the United States, or in the 
laws relating to banking and currency, which should enable 
Congress to legislate intelligently and to assure the country a 
sound, scientific, and elastic currency to meet all the conditions 
of our modern business life. 

Discussing the panic and its causes. Secretary Taft in an ad- 
dress before the Merchants and Manufacturers' Association of 
Boston, on December 30, 1907, said: "The world generally has a 
certain amount of loanable capital available for new enterprises 
or the enlargement of old ones. In periods of prosperity this 
capital, with the instrumentalities for enlarging its potentiality 
by credits, is put into new enterprises which are profitable, and 
the increase in free capital goes on almost in arithmetical pro- 
gression. After a time, however, expenses of operation and 
wages increase and the profit from the new enterprises grows 
smaller. The loanable capital gradually changes its form into 
investments less and less convertible. Much of that which might 
be capita] is wasted in unwise enterprises, in extravagance in liv- 
ing, in wars and absolute destruction of property, until the avail- 
able free capital becomes well nigh exhausted the world over, and 
the progress of new enterprises must await the saving of more. 
Men continue to embark in new enterprises, however, the capital 
fails them and disaster comes. 

"For eight or nine months last past there were many indica- 
tions that the loanable capital of the world was near exhaustion. 
This result was brought about not only by the enormous expan- 
sion^of business plants and business investments, which could not 
be readily converted, but also by the waste of capital in extrava- 
gance of living and by the Spanish war, the Bper war, and the 
Russian-Japanese war. and in such catastrophes as Baltimore 
and San Francisco. It became impossible for the soundest rail- 
roads and other enterprises to borrow money for new construc- 
tion or reconstruction. The condition was not confined to this 
country, but extended the world over, and was made manifest in 
the countries of Europe even before it was felt here. 

"Secondly, the conclusion cannot be avoided that the revela- 
tions of irregularities, breaches of trust, stock jobbing, over- 
issues of stock, violations of law, and lack of rigid State or Na- 
tional supervision in the management of some of our largest in- 
surance companies, railroad companies, traction companies, and 
financial corporations shocked investors and made them withhold 
what little loanable capital remained available. Such disclosures 
had much more effect, probably, abroad than they had here, be- 
cause here we are able to make distinctions* while there, at a 
remote distance, the revelations created distrust in our whole 
business fabric. 

"When, therefore, two or three institutions, banks and trust 
companies, supposed to be solid, were found to have their capital 
impaired by stock jobbing of their officers, the public were easily 



THE MONEY PANIC OF 1901. 87 

frightened and the ran upon the banks began. The question then 
became not one of loanable capital, but of actual money to be 
used in the transaction of the day, a very different question, 
though of course closely related. 

"It would seem that our system of currency is not arranged so 
as to permit its volume to be increased temporarily to counteract 
the sudden drain of money by the hoarding in a panic. It is 
probable that the stringency which reached its height on that 
dark day of October 24 might in part have been alleviated had we 
had a currency which could automatically enlarge itself to meet 
the tremendous demand of a day or a w T eek or a month while 
public confidence was being % restored. The National Administra- 
tion, together with many of the large capitalists of New York 
and elsewhere, put their shoulders under the load, and by various 
devices of an unusual character have brought about the present 
condition of gradually increasing confidence. 

"The injurious consequences to follow from this panic are not 
likely to be so long drawn out or to result in such disastrous in- 
dustrial depression as the panic of 1893 or the panic of 1873, and 
this for the reason that the condition of the country makes it so 
much easier to resume business gradually, to accumulate capital, 
and then to renew those enterprises which had to be abandoned 
for the lack of it." 

W. B. Ridgely, who was Comptroller of the Currency during 
the financial troubles of 1907, says : "As long ago as the date of 
the San Francisco catastrophe there has been no lack of warning 
indications of financial troubles and possible business disaster. 
For at least 10 or 12 years there has been an era of advancing 
prices and great industrial, commercial, and speculative activity in 
all countries of the world. Credits have increased and multiplied 
until the limit has been reached in the amount of reserve money 
on which it must be based. * * * These conditions have been 
world-wide and by no means confined to the United States. 
Crises of more or less severity have arisen in several important 
countries, and, as is always the case when there is a demand for 
liquidation, it first manifested itself in the stock market." 

Eepresentative Hill of Connecticut, discussing the subject, 
said : "The panic of 1907 began with the distrust of individual 
credit and a profound suspicion of the banks managed by the men 
whose credit was so distrusted. The causes lay deeper, but they 
were manifested in the weakest spot. The conditions which 
brought the panic were world-wide and not confined to the 
United States." 

Representative Vreeland of New York said in a speech in Con- 
gress upon this subject : "On the first day of October the Ameri- 
can people were blest with great prosperity. Everywhere the 
millions of our peojfie were engaged in gainful occupation. Our 
mills and factoris were uable to fill their orders. The consuming 
power of our people had never been greater. The railroads of 
the country could not furnish sufficient cars to move the products 
of farm and factory. The people of New York city took fright 
and commenced drawing their deposits from other banks. The 
bankers clear across the continent became alarmed, and all tried 
to draw their money from New York in cash at one time. The 
result was that the New York banks were obliged to refuse pay- 
ment, and a general suspension of cash payment took place 
throughout the United States." 

Representative Weeks of Massachusetts, discussing this ques- 
tion in the House of Representatives, said : "The reasons for 
this panic were, generally speaking, overspeculation, overcapitali- 
zation, overexpenditures by the Government, States and munici- 
palities, as well as by individuals, the tying up of large amounts 
of capital in permanent fixtures instead of retaining it as liquid 
capital, the carrying of excessive stocks of goods, the abnormal 
development of business in every branch, all of which led to the 
credit expansion of the dollar to the breaking point. Credit hav- 
ing been broken down, the natural and usual result followed.'* 

Representative Overstreet of Indiana, in discussing this sub- 
ject in the House of Representatives* said : "The recent panic fol- 
lowed unusual and startling disclosures of fraud and mismanage- 
ment in some of the great insurance companies and other leading 
enterprises of the country. It followed the further disclosure of 



58 TEE MONEY PANIC OF 1901. 

unprincipled financiering, as illustrated in the Alton Railway deal 
and as practiced by speculative bankers of the type of the Heinze 
syndicate of banks in New York. Overspeculation, unwarranted 
extension of credits, and a disregard of honest methods in busi- 
ness transactions alarmed the country. These disclosures devel- 
oped a lack of confidence and trust in men and not in business. 
With all these forces combined, the onslaught overthrew public 
confidence, money went into hiding, loans were called, factories 
were closed, and liquidation set in. It was impossible to foresee 
these conditions, and they came without warning and at a time 
when the business conditions of the country were at high tide." 

Senator J. W. Bailey of Texas (Democrat) said, in discussing 
this subject in the Senate : "I have my opinion, and it is a very 
definite one, as to what produced the recent financial stringency. 
* * * it was due immediately to the overuse of bank credits 
in the city of New York. It came -when the country had the least 
reason to expect it. Our crops had been abundant and the price 
of almost every farm product was more than satisfactory. A 
recent statement made by the Secretary of Agriculture shows 
that the products of American farms last year exceeded in value 
any previous year in our history. There had been neither war 
nor pestilence, the balance of trade was largely in our favor, and 
there was absolutely no question as to the value of our money. 1 
do not overlook the fact that it has been charged that the trouble 
was due to the persistent demand of the President of the United 
States for the enactment of new laws and the enforcement of old 
laws to regulate and control our railroads ; but that charge has 
been made by men whose minds are heated with resentment, and 
it will not bear a close analysis. The President has demanded 
only that the railroads of this country should be required to deal 
justly with the people, and he has evinced no disposition to harass 
or to oppress them." 

Hon. J. A. M. Adair of Indiana, in discussing this subject in a 
speech in the House of Representatives on January 23, 1908, said : 
"This panic came on us at a time of unprecedented prosperity. 
The products of the farm brought extremely high prices. The 
agriculturists were more prosperous than they had ever been be- 
fore. Our great mills and manufacturing establishments were run- 
ning day and night, with orders six months in advance ; labor 
was universally employed ; the banks throughout the country 
were bursting with deposits ; our splendid railroad system was 
unable to handle the freight offered for transportation. * * * 
With not a cloud in the sky, we were hurled into the chasm of one 
of the worst panics our nation ever experienced. The holders of 
watered stock were panic stricken ; depositors were frightened 
lest they could not get their money. Banks and trust companies 
closed their doors in the face of their depositors ; there was no 
money to handle the business of the country, and the people 
looked with suspicion on checks and drafts offered in payment of 
obligations. The manufacturing industries were unable to pro- 
cure money to pay labor. Orders placed with our manufacturers 
were canceled, and this forced the factories to cancel orders for 
material. * * * I do not believe our present financial crisis 
is due to our financial system, but to a lack of confidence in our 
business fabric, brought about by disclosures of dishonesty, cor- 
ruption and crookedness in many of our great corporations." 

M. Paul Leroy-Beaulieu, a distinguished French writer and 
economist, discussing the American crisis in the Economiste 
Francaise, says : "It is true that lack of currency elasticity may 
have helped on the troubles, but the principal cause of the crisis 
now raging in the United States and which has in a less degree 
touched Germany is the complete disregard of the well established 
rule of political economy, that capital limits industry., * * * 
New enterprises had been started or old enterprises enlarged far 
beyond the sum total of available capital — that is, beyond the 
amount of capital actually produced by the savings of the whole 
civilized world. ".Reserves of capital have fallen short of the re- 
quirements of extravagant American demands. The industrial 
megalomania in the United States took no account of what was 
possible. It merely devoted itself to pushing up everything. The 
debauch of extravagance was particularly indulged by the con- 
structing companies and by the great American railways. Con- 



THE MONET PANIC OF 1901. 5* 

^•acts were placed for the construction in the single year of 1907 
of vast amounts of work, and the companies prepared for such 
excesses by issues of securities to a simply stupendous amount. 
The truth of the whole matter is that in this panic the United 
States is simply paying the penalty for its extravagant expan- 
sion at a time when credit conditions were merely nominal." 

Mr. Seymour Bell, the British Commercial Agent in the 
United States, in a letter to the British Government, presented in 
Parliament and printed by the authority of that body, says : 

"During the earlier months (of 1907) all industries were ex- 
ceedingly busy and mills were working at their utmost capacity. 
Many unfilled orders had been carried over from the previous 
year, and buyers were experiencing great difficulty in getting de- 
livery of their goods. The railway lines were congested, wages 
were at their highest, and the high price of commodities raised 
the price of living to an extreme point. Money was becoming 
scarce, and the railways and other corporations were encounter- 
ing great difficulties in obtaining the capital necessary to carry 
on the improvements and extensions which were in process of 
being carried out. Speculation in mining and real estate had 
been rife and personal extravagance was at its height. 

"The situation was peculiar. On the one hand there were the 
manufacturers with more orders than they could fill and busy en- 
larging their plants, merchants selling large quantities of goods 
at satisfactory prices, labor in such demand that even with the 
addition of the 1,200,000 immigrants it was necessary to employ 
inefficient workers at good wages. On the other hand, there was 
dear money, owing to scarcity. 

"When, owing to a failure in New York, light was thrown 
on the management of some of the large financial concerns in the 
city, public confidence, which had previously been undermined by 
certain investigations, gave way completely, resulting in an acute 
money panic. 

"The panic was entirely financial. It has, it is true, brought 
about a widespread suspension of trade and industry through- 
out the country, but there has been no throwing on the market of 
merchandise at ruinous prices. The manufacturers without delay 
proceeded to curtail the supply and thus reduce such chances as 
there might have been of glutting- the market with unsalable arti- 
cles. It musl not be forgotten that the farmers, who form the 
backbone of American prosperity, have not been affected by the 
financial situation. A country that produces crops valued at 
nearly £1,500,000,000 ($7,300,000,000) is unlikely to suffer long 
from industrial stagnation. Farmers have had nine years of al- 
most uninterrupted prosperity, their buying power is high, and 
the towns dependent upon them will remain prosperous. 

"The farmers who a few years ago owed money now own 
money, and have an assured outlet for their products, as there 
is no oversupply. 

"The cloud of uncertainty is now passing away, and the worst 
of the storm has now passed. * * * It is expected that before 
many months have passed business will be on a safer and more 
normal basis." 

Hon. C. M. Depew, discussing this subject in the United States 
Senate, says : "A chain is no stronger than its weakest link, and 
the weak link in the recent situation was the trust companies, 
with their enormous deposits and limited reserves. There is no 
question about their soundness and their possession of a large 
surplus beyond all their obligations to their stockholders and de- 
positors. Nevertheless, while doing a banking business, they 
were not equipped for a banking emergency. A run was started 
on the Knickerbocker Trust Company, whose stock was selling at 
twelve hundred dollars for a hundred-dollar share. The spectacle 
of millionaires jostling clerks. and bank messengers in the rush to 
get to the window for their money before the cash was exhausted 
was illuminating. It showed that in a panic human nature 
works the same with rich and poor. * * * Then Mr. Cortel- 
you came to the rescue and deposited available money in the na- 
tional banks until the balance in the Treasury was down to about 
five millions. The action of the Government in placing $240,000.- 
000 with the banks, and this letrter of the President, ringing like 
-"*• clarion note of confidence in every office, workshop, store, f ari£ 



60 THE MONET PANIC OF 1901. 

house and dwelling of the country, together with the courageous 
action of the New York bankers and banks in importing gold and 
helping institutions assailed, stopped the panic and saved the 
country." 

Secretary Cortelyon on the Banks. 

The following are extracts from the response of the Secretary 
of the Treasury, Hon. George B. Cortelyou, to a resolution of the 
Senate of the United States calling for information regarding the 
operation of the Treasury during the panic period : 

Extracts from Report of Secretary Cortelyou on Events of 

Panic. 

In view of the importance of the subject and the wide discussion 
which has occurred in regard to it, it seems proper to summarize as 
briefly as possible the operations of the Treasury for the past year, and 
to follow this by a statement more in detail of the methods and reasons 
for some of the steps taken during the financial panic of 1907. 

In March, 1907, business conditions were becoming unsettled, and 
there shortly developed a period of acute stringency in the money markets 
which called for prompt and effective measures. Various relief measures 
were taken, and while this stringency was quite promptly relieved, sig- 
nificant indications of still further financial disturbance were apparent, 
and the Department therefore kept in very close touch with the situation 
in all parts of the country. 

It was decided in the latter part of August to make each week" sub- 
stantial deposits of public moneys in national banks, with a view to facil- 
itating the movement of the crops in various sections of the country. The 
Treasury was at that time in good condition to render substantial aid 
in this direction. The nominal cash balance on July 31, 1907, was 
$2?38, 574,188. Of this amount $156,990,204 was on deposit in national 
bank depositaries to the credit of the Treasurer of the United States 
or to the credit of disbursing offices. The net excess of cash above 
deposits stood, therefore, before this distribution, at about $81,500,000, 
affording a considerable margin above the amount required for a con- 
venient working balance. 

Beginning on August 28, and continuing each week until October 
14, this plan of weekly deposits was followed, a total of about $28,- 
000,000 being allotted to various banks. These banks were located in 
each of the 46 States, in the Territories, and in the District of Columbia. 
Every endeavor was made, from the information- and request's at hand, 
so to distribute this fund that it would meet actual needs in sections 
where business activity was at the maximum and currency was most ur- 
gently required. 

About the middle of October events occurred which indicated that 
a monetary stringency had arisen much more severe than that which 
experience has shown usually occurs in the autumn in connection with 
the movement of the crops. Rumors were current concerning many 
manufacturing establishments and others interested in large projects, who 
were embarrassed by inability to raise ready cash to continue their 
operations. In New York City this condition was brought to a head 
by the appeal of several national banks to the clearing house committee 
for aid, which was quickly followed by the suspension on October 22 
of the Knickerbocker Trust Company, after the payment of about $8,000,- 
000 in cash to depositors. Almost immediately runs began upon two other 
large trust companies, deposits were reduced in many other institutions, 
money began to be hoarded by individuals, and on October 26 the New 
York banks decided to issue clearing house certificates. 

Before the decision of the New York clearing house to issue clearing 
house certificates, the Treasury transferred to the national banks within 
a few days the sum of about $35,000,000. These deposits, with the 
aid given to those banking institutions which were severely assailed by 
those which were less disturbed, tended to stay the panic which was other- 
wise imminent. 

In order to meet the demand for currency by the institutions which 
were subjected to pressure, the Treasury Department forwarded to New 
York within three days about $36,000,000 in small bills. While these 
were not in all cases used in making' direct deposits of public moneys, 
they were available at the sub-treasury for any banking institution which 
desired to obtain them in exchange for bills of larger denomination or 
for coin. At a later date, gold coin was paid in many cases, at the 
request of certain institutions, because they found that payment of coin 
to depositors tended in a measure to discourage runs. It was not be- 
cause the coin was preferred to notes ; on the contrary, it was because 
depositors did not desire to be burdened with taking away the coin, and 
preferred notes of large denominations. It is, indeed, a source of grati- 
fication that at no period of the crisis was there the ' slightest suspicion 
of the integrity of the currency issued either by the Government or by 
national banks. The effect of the law of March 14, 1900, in creating 
an adequate gold reserve and providing necessary measures to replenish 
the reserve in case of need, so completely set at rest any distrust of the 
exchangeability of all forms of paper for gold that the subject was hardly 
mentioned anywhere, except as a cause of congratulation upon the effects 
of the gold standard act. The transfer of large amounts of gold from 
the Treasury to the banks made it necessary to run the mints at high pres- 
sure in order to comply with the requirements of the Art of Marfeh 
14, 1900, that not more than $50,000,000 of the legal gold reserve of 
$150,000,000 should be kept in bullion. There was at no time any dis- 
position to convert any form of Government paper into gold bpcn^se of 
any question as to safety of the papet, nor was there any disposition to 
present gold certificates for redemption in gold coin. 



THE MONEY PANIC OF 1901. %1 

While the action of the Department in placing large sums in the 
national banks in New York was subjected to some criticism, it was 
amply justified by the conditions as they then existed and as they have been 
disclosed in the light of subsequent events. Figures given further along 
will show that the national banks in New York did not retain in their 
own keeping the public moneys received, but were enabled through their 
extended relations, as to reserve depositaries with banks of all classes 
throughout the country, to employ these moneys to meet a large pro- 
portion of the calls made upon them. 

An examination of the deposits made by the Treasury in the banks, 
from time to time, commencing in the middle of October, will show that 
as the stringency progressed the Treasury gave relief in every important 
locality where assistance seemed to be required. Some of the more im- 
portant deposits were as follows : Chicago, $3,000,000 ; Pittsburg, $1,500,- 
000 ; Cincinnati, $1,500,000 ; Minneapolis and St. Paul, $500,000 ; and in 
many places in the South and West, the public revenues, which ordinarily 
would be remitted to the various sub-treasuries, and thus taken out of 
circulation, were allowed to accumulate in national bank depositories. 

After the spectacular events in New York, however, which culminated 
in runs upon three important trust companies, the demand for money 
became so intense that the banks in the large cities were obliged to 
issue clearing house certificates to use in place of currency in settling 
balances among themselves ; and in many places outside of New York 
certificates of small denominations printed in a form for general circulation 
were largely used. Thus each city endeavored to avoid the shipment of 
currency, and to retain for its own use such cash as might still be within 
its control. It appears that in New York City alone clearing house cer- 
tificates were issued in excess of $100,000,000. 

By the middle of November the Treasury had met the demand for 
relief to the extent that it had deposited with the banks all accumu- 
lated funds not needed for the immediate purposes of meeting Govern- 
ment expenditures, and had reduced the actual working balance to ap- 
proximately $5,000,000. To allow the balance to fall below that figure 
was not considered prudent, as much difficulty was experienced in bring- 
ing into the Treasury public moneys actually collected at sub-treasuries 
and other revenue offices. The public revenues also were falling off, 
owing in part to the scarcity of currency, which prevented the payment in 
the form required by law of internal revenue taxes and of duties on 
imports. 

In the meantime, and as apparently no further deposits could safely 
be made from the diminished cash resources of the Treasury, national 
banks were notified that they would be permitted to substitute bonds 
suitable for savings bank investments for Government bonds which were 
held as security against public deposits. The purpose of this measure 
was to enable the banks to employ the Government bonds, which were 
thus released as security for additional banknote circulation, in conformity 
with law. To this offer the banks rseaponded promptly, and as a result 
many millions of additional banknotes were taken out and were employed 
in meeting the currency famine. 

As usual in emergencies, the difficulty of obtaining bonds, and other 
obstructions of detail, prevented the increase in circulation becoming 
effective to the full amount until some time after the need for it had 
passed. Just before the acute stage of the crisis, the national banknote 
circulation stood (on October 15) at $607,118,742!. While strenuous efforts 
were made, especially by some of the large banks in New York and 
Chicago, to comply with the expressed wishes of the Department and of 
the Comptroller of the Currency to increase circulation, the amount out- 
standing had risen on November 1 only to $611,822,676, and on November 
15 to $631,344,943. The most important increase in the circulation 
took place after the announcement, about to be referred to, of the Govern- 
ment issues of Panama bonds and one-year Treasury certificates, so that 
the circulation attained on December 1 the amount of $656,218,196 ; on 
December 15, $676,914,235 ; and finally, on December 31, $690,130,895. By 
the latter date the urgent pressure for currency had practically ceased 
and yet notes continued to be issued in compliance with orders previously 
received, until the outstanding circulation on June 5, 1908, last, was $698,- 
511,588. 

The fact that, the national banks were exerting themselves to increase 
circulation, and that the Treasury by these new issues placed at their 
command means of doing so, undoubtedly had a moral effect which tended 
to check the panic and reduce the premium on currency. The banks 
were hampered, however, before the announcement of the new Govern- 
ment issues, by the rapid advance in the price of 2 per cent bonds. 
These bonds sold as high as 110, and even at this price the supply in 
the market obtainable by national banks was extremely limited in quan- 
tity. 

It was with a view to relieving this situation, and counteracting the 
premium on currency, which was itself a stimulus to hoarding and which 
practically interrupted exchanges between different cities, that it was 
derided on November 17 to receive applications for subscriptions for 
$60,090^000 in Panama Canal bonds, under the Act of June 28 1902; 
and $100,000,000 in 3 per cent certificates of indebtedness, under the 
Act of June 13.. 1898. One of the direct effects of thee issues was 
to afford to the banks the means of increasing their circulation. If the 
proceeds of these issues had been retained in entirety in the Treasury. 
the increase in bank circulation would have been offset, by the amount 
paid bv the banks for the bonds. By providing, however, for the tn 
to the banks of a part of the purchase money as an addition to their holdings 
of public deposits at the time, a very considerable net increase in circu- 
lation became possible. ** 

Tn order to afford this relief, the banks to which awards were made 
on Panama bonds were allowed to retain 90 per cent of the purchase 
price as a deposit, and those to which allotments were made of the one- 
year certificates were allowed to retain 7. r > per cenl of the purchase prloe. 
Thus an inducement was offered Cor ons to the ne^ Issues, aa 



62 THE MONEY PANIC OF 1901. 

well as a means of increasing banknote circulation. It was the deliberate 
intent also that the offer was made more attractive in the case of tha 
bonds than in the case of the certificates, after it became evident that 
the issue of the entire amount of the latter first proposed would not 
be required to restore confidence. Ultimately the results of these offers 
on the part of the Treasury were such that it was found necessary to 
issue only $24,631,980 in the Panama bonds and $15,436,500 in the 
certificates of indebtedness. Practically all of both classes of obligations, 
excepting $91,820 in bonds, were used as the basis for increasing the 
banknote circulation or securing public deposits. 

The Comptroller of the Currency refrained at the height of the panic 
from calling on the national banks for the report of condition usually 
required during November, but he issued such a call for reports of 
condition on December 3. The result of the call revealed what was 
expected in well-informed quarters — that much of the currency with- 
drawn from New York had been added to the reserves of interior banks, 
and that their position was execeptionally strong. The fact that the 
call had been made and the report submitted contributed another favor- 
able factor to the situation immediately afterwards, by enabling the 
banks to release a part of this accumulated cash to meet the pressing 
needs of their clients, with the knowledge that they would probably be 
able fully to reinstate their reserves before another call was made by the 
Comptroller. 

The announcement of the issues of new securities by the Treasury, 
accompanied by the publicafion of a letter by the President to the Sec- 
retary of the Treasury, marked in some degree the turning point of the 
panic. The deficit in the reserves of the New York clearing house 
banks which on November 16 was $53,669,950, increased in the next 
week less than $500,000, and in the following weeks turned rapidly 
downward", until the amount on December 28, 1907, was only $20,170,350, 
and by January 18 had been converted into a surplus of $22,635,475. 
The cash holdings of these banks, which had touched a minin*am on 
November S3, 1907, of $215,851,100, rose on January 18, 1908, to $295,- 
182,600. No further steps were considered necessary by the Treasury 
except to continue deposits of public moneys for a time where they were 
available, and early in December it became possible to replenish the cash 
in the Treasury by the withdrawal of about $6,000,000 from national 
banks in New York City. The premium on currency did not wholly dis- 
appear until about the beginning of the new year, but remained only 
nominal during the latter part of December as the panic subsided and as the 
funds withdrawn from banks for hoarding were gradually restored 

So rapidly did the money market improve after the tide had once 
turned that the call made by the' Department upon the banks early in 
December for the return of $6,000,000 was followed on January 24 
by another call for about $10,000,000 from New York banks, and this 
was followed on February 25 by a call for about $29,000,000, each 
bank having an available excess of $50,000 or over being called upon 
for the payment of 25 per cent of its holdings of public money. Voluntary 
payments from New York, Philadelphia, Baltimore, and Boston, in the 
meantime had brought nearly 10 millions back into the Treasury. On 
April 28, 1908, a call was issued for the payment of approximately $45,- 
000,000, and this amount was overpaid by several hundred thousand dol- 
lars. 

In Europe, also, conditions began to improve rapidly with the pass- 
ing of the crisis in America. The percentage of the reserve at the 
Bank of. England rose from 35.62 per cent on January 2, 1908, to 52.69 
per cent on January 16, and the directors felt justified in reducing the 
official discount rate from 7 per cent to 6 per cent on January 2, and two 
weeks later (on January 16) to- 5 per cent. The gold stock of the bank, 
which had been reduced on November 7 to £27,725.225, rose on January 
2, 1908, to £32?,543,666, and on January 16 to £35,791,425. The Imperial 
Bank of Germany, which had been under severe pressure, benefited by an 
increase in its cash by about $20,000,000 in the single week of January 
17, and a decrease in its note issue by $43,875,000, and under these con- 
ditions felt justified in reducing its discount rate from 7% to 6% per cent, 
and later (on January 25) to 6 per cent. The Bank of France also 
greatly increased its cash resources and reduced its discount rate early 
in the year. 

The Secretary did not feel called upon at any stage of the crisis to 
interfere directly with the normal movement of gold between international 
markets. The movement of foreign exchange was very irregular in the 
early stages of the crisis, because of some demand for remittances to 
London in settlement for maturing finance bills and in payment for Ameri- 
can securities which were being remitted by disturbed foreign holders 
to the United States. The sum of $1,500,000 in gold was actually engaged 
for export to Germany on October 19, but was explained as being a special 
transaction. 

After a short period of uncertainty, however, exchange turned strongly 
in favor of imports of gold into the United States, and by the end of October 
engagements of over $24,000,000 were announced, which were eventually 
swelled during the next two months to more than $100,000,000. None of 
this gold arrived until November, but the moral effect of the engage- 
ments was felt as soon as they were announced. The metal was dis- 
tributed, chiefly through the channel of the New York clearing house banks, 
to threatened points throughout the country. It is a striking proof of 
the energy with which the banks of New York extended aid to those of 
other parts of the country that the national bank returns show a reduc- 
tion in soecie in the national banks of New York from $173,221,007 
on August 22, 1907, to $147,974,918 on December 3, 1907. Thus, not 
only did the entire volume of gold imported between these two dates pass 
through New York to other places, except so far as a part was hoarded 
by individuals, but the New York banks gave up $25,000,000 of their 
usual and normal reserves. 



THE MONEY PANIC OF 1907. 63 

Magnitude of tlie Crisis. 

The justification for taking vigorous action to arrest panic Is found 
in the remarkable figures of the disapppearance of currency during the 
period of about six weeks from the suspension of the Knickerbocker 
Trust Company on October 22 until confidence was partially restored 
early in December. The amount of currency which disappeared from 
sight during this period, as nearly as can be ascertained from the national 
bank reports and other sources of information, was about $296,000,000, 
as follows : 

Cash absorbed in United States during the panic. 

Reduction in cash in national banks, August 22 to December 3 $40,838,786 

Net imports of gold, November 1 to December 31 106,403,770 

Increase in public deposits, August 22 to December 3 79,834,689 

Increase in bank circulation, August 22 to December 3 49,856,524 

Decrease in cash in State banks and Trust Companies of New 

York City, August 22 to December 19 19,191,700 

Total 296,125,469 

Of this great absorption of currency, amounting substantially to one- 
tenth of the entire estimated money in circulation in the United States, 
more than two-thirds of the burden fell upon New York. This was 
almost inevitable from the fact that New York is the financial distrib- 
uting center of the country. The figures show that nrbre than the entire 
net loss in national bank reserves fell upon the national banks of New 
York City. The national banks outside of New York City, in spite of 
heavy demands upon them, were able by the aid of New York to main- 
tain an amount of cash actually larger by a small amount on December 
3 than they held at the date of the previous report to the Compteroller 
on August 22, when conditions were relatively tranquil. The, national 
banks of New York City not only met the demand for currency until 
their reserves were reduced $54,103,600 below the legal limit, but in ad- 
dition they imported and distributed $95,000,000 in gold, and distributed 
also, in order to meet the demands of their depositors and banking cor- 
respondents, all of the money of the Government deposited with them. 
The result was that of the $296,000,000 currency absorbed throughout the 
country, $218,275,304 was provided by the banks of New York City. The 
amount thus disposed of by New York banks and trust companies is shown 
in the following table : 

Currency absorbed through New York banks. 

Reduction in cash in national banks, August 22 to December 3 $41,692,312 

Net imports of gold, November 1 to December 31 94,095,481 

Increase in public deposits, August 22 to December 3 47,576,356 

Increase in banknote circulation, August 22 to December 3... 15,719,455 
Reduction in cash in State banks and trust companies, August 

22 to December 19 19,191,700 

Total 218,275,304 

The gravity of the situation was enhanced by the fact that the pres- 
sure upon the money market was not localized in the United States. The 
first engagements of gold were from London and were met by a prompt 
increase of the Bank of England discount rate from 4^ to 5% per cent 
on October 31, which was followed on November 4 by an advance to 6 
per cent, and on Thursday, November 7, to 7 per cent — the highest rate 
fixed at the bank since 1873. In Germany, also, severe pressure was felt 
and the bank rate, after having been first advanced, on October 29, from 
5 x /£ to 6y 2 per cent, was further advanced on November 8 to 7^ per 
cent— the highest rate charged by the Imperial Bank since its organization 
in 1873. The Bank of France, in spite of its immense holdings of gold, 
advanced its rate from 3% to 4 per cent for commercial discounts. So 
serious was the situation in London that aid was invoked from the Bank 
of France, and prudent American bankers felt it necessary to limit demands 
for gold upon London for fear that if they became excessive a commercial 
crisis would occur there which would intensify the danger of the general 
situation in all international markets. Arrangements for imports of gold 
into New York were made not only in Europe, but from the Argentine 
Republic, and Cuba, and the reaction of the American crisis upon Canada 
led to some importations into that country 

The energy with which the economic resources of the country were 
devoted to the relief of the situation is indicated by the manner in which 
exportation of merchandise was expedited by the railways and by dealers 
in foreign exchange. The figures of the movement of merchandise are 
among the most striking ever exhibited in the history of the country. 
They are briefly indicated in the following table : 

Foreign trade movement, August 1 to December 31, 1907. 



Month. 


Import* of 
merchandise. 


Ex^orls of 
meichandlse. 


Excess of 
exports. 


August ._ .- 


$125,806,043 
106,365,180 
111,912,621 
110,942,016 
W, 288,771 


$127,270,447 
135,318,312 
180,256,085 
204,474,217 
207,179,436 


$1,464,404 
28,953,162 
68,343,464 
93,531,301 
114,890.665 


September . . ... 


October 

Novenib'M' .. .____ 


December 



64 THE MONEY PANIC OF 1901. 

The Issue of Bonds and Treasury Certificates. 

The issue of new securities by the Treasury Department was influ- 
enced by the conclusion that' it was advisable to take some strong and 
resolute step which would convince the public, both at home and abioad, 
that the Government was thoroughly alive to the situation and determined 
to give its aid in every possible legal and proper form. The most potent 
weapon at such times in bringing a crisis to an end is often as much one 
of moral effect as of the definite action takgn. It has been the history 
of many great crises in Europe as well as in this country that the knowl- 
edge that adequate resources existed to avoid distaster was often sufficient 
to obviate the necessity for employing such resources to their utmost 
limit. An illustration in point is the action of the Chancellor of the 
Exchequer in Great Britain in the panic of 1866, when the announce- 
ment that he had authorized the Bank of England to disregard the bank 
act and. to issue its notes to any necessary limit promptly arrested pres- 
sure upon the banks. So prompt was the response of public feeling to 
this action in suspending the demand for discounts and the withdrawal 
of deposits that the bank did not find it necessary to avail itself of the 
authority to issue additional notes. The fear that accommodation could 
not be obtained by solvent business men was completely allayed and the 
panic almost immediately subsided. ' 

The fact that the Treasury was in a strong position in respect to 
its normal cash balance made the situation much more easy of control in 
some respects than after the panic qf 1893, when the cash balance was al- 
most completely exhausted and the reaction of this influence was felt in de- 
pleting the, gold reserve. At that time the' first issue of $50,000,00,0 in 5 per 
cent bends was not announced until the cash reserve had been depleted 
below $50,000,000. And the same depletion took place before the second 
issue of bonds in the autumn of 1894. In the recent crisis it seemed 
advisable to the Department, in view of the much sounder condition of 
general business and of the Treasury than in 1894, to announce a strong- 
measure of relief without waiting for the crisis to become more acute. 

It was with this view of the situation that the Secretary of the 
Treasury, in proposing to the President an announcement of an issue 
of $50,000,000 in 2 per cent bonds for the construction of the Panama 
Canal and $100,000,000 in 3 per cent Treasury certificates for one year, 
made the qualification that these amounts should be issued only "if nec- 
essary. " 4 

While the pressure upon the banks was not allayed at once by this 
measure, confidence was so far restored that the premium on currency 
fell immediately, and bids were received in such volume for both classes 
of issues that it was not considered necessary to allot even half of the 
total amount of the two issues. 

The Panama Canal bonds were issued under authority of the Act of 
June 28, 1902, as amended by the Act of December 21, 1905, authorizing 
the Secretary of the Treasury "to borrow on credit of the United States from 
time to time as the proceeds may be required to defray expenditures au- 
thorized by this act (such proceeds when received to be used only for the 
purpose of meeting such expenditures), the sum of $130,000,000, or as 
much thereof as may be necessary." 

It would seem to be obvious from this language that it was in- 
tended to construct the canal entirely from the proceeds of loans issued 
for the purpose and not to charge any part of the oost of construction 
upon the current ordinary receipts of the Government. As the entire 
proceeds of the bonds which were actually issued under this offer, amount- 
ing to $24,631,980, have been expended on the canal work, it would seem 
that no question of the legality or propriety of such an issue of bonds 
could be raised. 

The one-year certificates were issued under authority of the Act of 
June 13, 1898, authorizing such issues when necessary to meet the ex- 
penses of the Treasury. v The criticism has beer made that with a 
nominal cash balance of some $200,000,000 in the Treasury the occasion 
contemplated by the act did not arise and the p.'swer therefore did not 
accrue to the Secretary to make an issue of such securities to- meet cur- 
rent expenses. From a strictly legal point of view there is probably 
no question that the determination of the occasion for making such an 
issue is within the discretion of the Secretary of the Treasury. Indeed, 
it is expressly made so by the statutes. From a financial point of view 
the Secretary felt justified in exercising this discretion with due regard 
to the amount of cash actually in the Treasury as well as to the amount 
shown upon the balance sheet, including deposits in national banks. It 
seemed to him that it would be a strained construction of the Act of 
1898, and of his official responsibility, to hold that it was his duty, in 
order to meet the current needs of the Treasury, to invoke a financial 
disaster by attempting to withdraw funds on deposit with national banks 
at a time when they were subject to severe strain in meeting the busi- 
ness requirements of the country, and when any additional act or policy 
tending to subject them to further pressure might make absolutely im- 
possible, if it were not already so, the return to the Treasury of the funds 
required for meeting its obligations. 

With a balance of only about $5,000,000 in actual cash in the Treas- 
ury, after setting off the necessary amounts against outstanding checks 
and other similar liabilities, Treasury operations could not be carried 
on with ease and safety without additional funds. If measures to ob- 
tain such funds could be taken in such a manner as to restore confidence 
to the financial situation as well as to perform the more direct service 
of keeping the Treasury balance adequate, it seemed to the Secretary 
that the adoption of a policy calculated to achieve these ends was not 
only within the strict limits of his legal powers, but was within his 
duty as responsible in some degree, under our existing fiscal system, for 
the soundness and security of the monetary situation. While the entire 
economic resources of the country were being devoted to the relief of the 
monetary stringency, not only on the part of domestic bankers, but by 
foreign exchange houses and by the railways in the prompt movement of 



: 



THE MONET PANIC OF 1907. 65 

freight for export, it seemed inadvisable for the Secretary of the Treas- 
ury to take any step which would tend to counteract these efforts by 
withdrawing funds from the -banks and thereby adding to the evils which 
it was his earnest desire to alleviate and bring to an end. 

Allotment of the New Issue of Securities. 

The character of the new issues of securities offered for subscription 
on the 19th of November last was such that it was anticipated that 
most of the subscriptions would come from national banks. The 2 per 
cent bonds afford such privileges to national banks as a basis of note 
circulation that there are strong inducements to the banks to outbid pri- 
vate investors, who would find in the bonds nothing more than the best 
form of security paying only 2 per cent per annum. It was expected — 
and this expectation was fulfilled — that the bonds would be used largely 
as a basis for additional banknote circulation and that such circulation 
would contribute its share to relieving the acute pressure for currency 
which existed throughout the country. Even if there had been no other 
justification for limiting subscriptions to national banks, this consideration 
■ — that the bonds would be used to meet the pressure for currency — would, 
in the opinion of the Department, have justified an absolute restriction of 
the awards to national banks. 

The legal right of the Department to make allotments of the bonds 
and securities to such persons and banks and in such amounts as it 
might see fit can hardly be called in question, in view of the fact that 
reservations on these points were made when subscriptions were invited. 
Thus the circular offering the Panama bonds contained this distinct pro- 
vision : "The Department also reserves the right to reject any or all 
bids, if deemed to be to the interests of the United States so to do." 

Obviously, so far as the offer of securities was influenced by the desire 
to prevent distress in the money market, it would have failed of this 
purpose if the awards had been made, even to bona fide bidders, which 
would have resulted in large drafts upon the reserve money of the banks 
and would not have aided in drawing money from private hoards. After 
careful analysis of the bids received the conclusion was reached by the 
Department that if bids were awarded to individuals in large sums it 
would have the tendency to cause still further withdrawals of money 
from the savings banks, which usually carry relatively small reserves in cur- 
rency, and in case of heavy demands upon them would have been compelled 
to draw upon the national banks and trust companies. It was, therefore, 
decided in the case of the Panama bonds to make no awards to individ- 
uals in excess of $10,000. It was also decided to accept the highest 
bids of national banks for the remainder of the issue, after these mini- 
mum allotments to individuals. 

There was another consideration, however, which it was felt cast 
more or less suspicion on offers for the bonds coming from individuals. 
This was the fact that the low rate of interest paid upon the bonds and 
their obvious advantage to the national banks made it probable that indi- 
vidual offers would be made for speculative purposes — in other words, 
for the purpose of selling the right of subscription as promptly as pos- 
sible to the banks. If there were any doubt of the correctness of this 
anticipation it was removed by the character and amounts of bids which 
were received. The total bids for the Panama Canal bonds amounted 
to $2,220,604,580, or more than 44 times the amount offered. This 
fact, not heretofore made public, would have stamped the loan as an even 
more remarkable success than it was, if all these bids could have been 
regarded as 7iiade in good faith by responsible parties. Examination 
of the bids shows, however, that many of them were not only speculative 
in character, but th^t they were made in many cases for very large 
amounts by those wno were personally irresponsible and incapable of 
having made even the smallest preliminary payment if such payment 
had been required. When the awards were made, therefore, the bonds 
were awarded without hesitation to national banks in those cases where 
the prices offered were 102% or higher, and where the bid appeared in 
other respects to be made in good faith and with full capacity on the 
part of the bidder to execute his contract. The amount thus awarded to 
national banks was $24 998,040. 

The awards made to individuals were limited to those cases- where 
the amounts subscribed for were for $10,000 or less, because such bids 
had at least a prima facie appearance of good faith. Even upon this 
modest basis the payments made after the allotment of the bonds showed 
that a considerable portion of these small bids were speculative and 
tiiOre or less irresponsible. While the national banks to which awards 
Were made actually took up and paid for $24,478,860, and left unpaid 
for $519,180, or only a little more than 2 per cent of the awards, the 
$325,660 awarded to individuals were taken up and paid for only to 
the amount of $153,120, and $172,450, or considerably more than half, 
were not paid for and remain on the hands of the Treasurer. Even of 
the amount taken up and paid for, only $91,820 were issued, in con- 
formity with the instructions of the bidders, directly to them. In other 
cases, to the amount of $61,300, directions were given to deliver the bonds 
to national banks, who made the actual payments. Hence, of the small 
amount awarded to individuals only about 28 per cent proved to be bids 
to obtain bonds for investment. 

There was less margin for speculation in the case of the 3 per cent 
certificates, because their term of one year did not allow for any con- 
siderable premium without extinguishing the amount of the interest. 
They were issued at par, and this made them immediately available, as 
it was n<t necessary to secure bids as in £he case of the Panama bonds. 
They therefore afforded a convehienl means to the banks at once to in- 
brea.se their circulation. For this reason the Secretary of the Treasury 
thought proper to announc< at an early date that otters from individuals 
would no longer be received While a number of such offers had been 
received prior to this notice, it was ulti r nat«»ly decided to make- no allot- 
ments except to national banks. This i ci ion was dictatec. by two 



Oft TEE MONET PANIC OF 1901. 

considerations— first the desire to stimulate the issue of banknote cir- 
culation for a period which would relieve the crisis ; and, second, the 
fact that the announcement of the issue of the new securities had already 
to a large extent accomplished its intended purpose and had made it un- 
necessary to issue more than a fraction of the full amount. The issue 
of these securities was suspended therefore before the date first named fori 
closing the receipt of subscriptions, the total amount of the subscriptions 
having reached $63,959,500. The amount issued was only $15,436,500. 
As all of these were registered and issued to national banks with the 
understanding that they should be used as a basis for increasing their 
circulation, or to secure public deposits, they are all on deposit with the 
Treasurer of the United States for these purposes. The statement of the 
Comptroller of the Currency, as of December 31, 1907, shows that $14,- 
944,500 were deposited to secure circulation and $492,000 temporarily to 
secure deposits, pending the issue of circulation. The entire amount, 
$15,436,500, is now deposited to secure circulation. 

One advantage in the issue of the one-year certificates as a basis 
for circulation is that this circulation may be retired within one year. 
It is provided by the Act of March 4, 1907, that not more than $9,000,000 
of banknotes shall be retired in any one month, but this restriction does 
not apply to obligations called for redemption. As the 3 per cent cer- 
tificates will at maturity, in November next, fall under the latter ex- 
emption, the notes based upon them can be retired without restriction as 
to amount if they are found unnecessary for the purposes of business. 
Moreover, in those cases where the Secretary has arranged by mutual 
agreement with the buyers that the certificates may be called and 
paid off within a less period than one year, it will be possible to contract 
the circulation, if it appears to be redundant, without even waiting for 
the expiration of the year from the issue of the certificates and without 
limitation as to amount. 

While the awards of 2t per cent bonds were made primarily to the 
highest bidders among national banks, the effect of the awards was to 
distribute the bonds among banks in 40 of the 46 States of the Union. 
The one-year certificates were distributed less widely, because it was 
found practicable to limit the issue before the time originally set for 
ceasing to receive subscriptions. The certificates were taken, however, 
by institutions in at least 18 States in different parts of the Union. 

It was properly pointed out in some quarters, when two issues were 
proposed, aggregating $150,000,000, that they might tend to an inflation 
of the banknote circulation which would be disturbing if the demand for 
currency should be diminished by the cessation of business activity. It 
was in consideration of this factor that the Secretary felt justified in re- 
stricting the issues in both cases as soon as it appeared that their an- 
nouncement had produced the desired effect upon public confidence. The 
issue of the Panama bonds would have been required in any case within 
a short time to meet the expenses of constructing the canal, and the Sec- 
retary of the Treasury can hardly be held responsible for the effect of 
such issues upon the volume of the banknote circulation, whatever may 
be his opinion as to the desirability of the inflation which might result. 
Practically, therefore, the responsibility resting upon him relates only 
to the $15,436,500 in the one-year certificates and will terminate with 
their maturity and redemption on November 30 of the current year. If 
currency is at that time redundant in amount and tnere is a tendency 
to the exportation of gold, the fact that at least this portion of the 
circulation might be retired by operation of law, unless secured by the 
deposit of other existing bonds for longer terms, may have a salutary 
effect upon the exchanges. 

Distribution of Public Moneys. 

Obviously when the pressure was focused, to the extent which has 
been set forth, on the financial center of the country, it seemed advis- 
able to focus relief there also. The national banks of New York City 
held on August 22 only $28,253,386 in deposits of public money, aside 
from certain balances of disbursing officers, or considerably less than 
3 per cent of the national banking capital of the city. The United 
States deposits in national banks in all other places were about $115,- 
000,000, or more than 12 per cent of the national banking capital of 
the remainder of the country. It is plain, therefore, under the policy 
of recalling the public funds which was inaugurated in the spring, that 
the national banks of New York were not favored with any large pro- 
portion of public moneys, but, if any unintentional discrimination was 
shown, were treated less favorably than the banks of other sections of 
the country. Not a dollar of the public moneys has been deposited in 
the national banks of the country upon any other basis than that of the 
public interest. These funds have been deposited and distributed without 
regard to partisanship, and no individual or association of individuals, 
no city or state or section, has received any other than that fair and 
impartial consideration to which each is entitled. 

While the Secretary of the Treasury felt compelled, In order to meet the 
exigencies of the situation, to increase deposits largely in the banks of 
New York City, even the proportion left in their custody after the panic 
had subsided was smaller than the proportion in certain other cities 
and States. The amount of public deposits December 7, 1907, in the entire 
country was $222,352,252, which amounted to 15.3 per cent of national 
banking capital and surplus, amounting to $1,451,296,366. While the 
banks of the State of New York appear as holders of public moneys to 
the amount of 26.8 per cent of their capital and surplus, the banks of 
the New England, Eastern, and Middle Western States taken as a whole 
and including New York, show a percentage of deposits to capital and 
surplus of only a little more than 15 per cent. The banks of the Southern, 
Western, and Pacific States, on the other hand, show a proportion of 
nearly 18 per cent. With the elimination of New York from the East- 
ern group, the percentage of the remaining Eastern and Middle Western 
States is only about 11.2. 



THE MONET PANIC OF 1907. 67 

Full details of this distribution of public funds, show that they are 
distributed among some 1,400 national banks. The chief object, of 
course, in distributing public funds is not to afford profit to banks as 
such, but to afford to the business community means for carrying on its 
transactions upon a normal basis of money supply and interest charges. 
It has not been thought necessary by the Department to extend the dis- 
tribution of public funds to all small banks, but the aim has been to 
distribute them so widely in every part of the 'country that the benefit 
of the funds thus distributed would reach even the most remote quarters 
through the increased power of making loans and rediscounts given to 
the stronger banks of the locality. 

It has been sought under the present administration of the Depart- 
ment to reduce the geographical distribution of the public funds as far 
as possible to an equitable basis. While one of the means of doing this 
has been to correct inequalities in the percentage of such distributions 
by States, and such corrections are still being made from time to time, 
it has not been felt that the sole and conclusive test of the wisdom of 
the distribution was the exact percentage of funds distributed. On the 
contrary, where particular trade movements were taking place involving 
a special demand for currency, larger deposits have been made than in 
communities where the supply of currency and capital appeared to be 
adequate to meet existing demands. The State of Lousiana, for instance, 
where the cotton movement of the Southwest is largely financed, held on 
December 7, deposits equal to 27.4 per cent of its national bank capital 
and surplus. The State of Texas, on the other hand, which has banking 
capital equal to about four times that of Louisiana, has received only 
5.2 per cent of this amount in public moneys, because the resources of 
the local banks appeared to be equal to the local character of the ex- 
penditures involved in the movement of the cotton crop. It may be added, 
in the case of Texas and in some other States where the distribution of 
public funds was small, that the banks showed by the large reserves of 
cash which they held that they did not need Government assistance. 
Thus, the percentage of total reserve held against deposits was in Texas 
25.72 per cent, and in Arkansas 29.82 per cent. 

In the West, Wisconsin, which contains only one large commercial 
center, received deposits in the ratio of only 9.9 per cent of banking 
capital and surplus, while Indiana received 17.1 per cent. On the 
Pacific Coast, California received 22.2 per cent ; the State of Washington 
29.4 per cent, and Oregon 34.4 per cent. In New England on the other 
hand, where business is carried on less with borrowed capital than in 
some other sections of the Union, the average percentage of public de- 
posits for the national banks of the entire section was only 8 per cent, 
and in Connecticut as low as 3.2 per cent. It would seem, therefore, that 
in spite of considerable differences in the distribution of public funds, 
it could hardly be asserted that the figures indicate any justifiable pref- 
erence fpr one section of the country over another. If they do indicate 
such a preference, it is in favor of the West and South as against the 
Eastern States, where resources in addition to the normal commercial 
assets of the banks are less needed than elsewhere, except in New York, 
upon which centers the pressure from nearly the entire country. 

The subject of the equitable distribution of these deposits is one to 
which the Treasury Department has given much attention. Bear- 
ing in mind the peculiar needs of different sections and the well-recog- 
nized movements of currency, it was intended so to distribute the weekly 
deposits which were begun in August as to remove the inequalities which 
might be found to exist in a manner so gradual as to prevent any sudden 
and violent disturbance to business in any locality. To formulate an 
intelligent policy and pursue proper methods in dealing with these de- 
posits, a commission was appointed by the Secretary in April, 1907, 
consisting of the Treasurer of the United States, the Comptroller of the 
Currency, the Director of the Mint, the Chief of the Division of Loans 
and Currency, and the Chief of the Division of Public Moneys. Much 
progress has been made in the equitable distribution of th^se funds by 
gradually increasing the deposits where they were most needed, and it 
was the intention to deposit in several additional weekly installments, 
some of which had already been prepared, substantial amounts in cer- 
tain of the larger cities, notably Chicago, St Louis, Philadelphia, Cin- 
cinnati and other points. This policy of gradual distribution was inter- 
rupted by the panic of October. It then became necessary to mass funds 
in large amounts where they would be most effective, and the figures 
already given show that from the financial centers they were distributed, 
almost automatically, to the points most seriously threatened. 

One of the reasons for making deposits in large amounts in the national 
'banks of New York and other important cities, aside from the great 
effectiveness of such deposits in financial centers, whence they would find 
their way to the points where the need was greatest, was the fact that 
these banks were able more promptly to obtain the bonds required as 
security. The emergency was too keen to assign deposits to banks which 
were not in possession of bonds or could not obtain them promptly, either 
by purchase or by borrowing from large financial institutions not en- 
gaged directly in the business of note issue or the payment of demand 
deposits. 

An effort was made also to broaden the basis upon which public de- 
posits might be made by extending the list of bonds acceptable to the 
Department. Up to about the 1st of October, State, railway, and muni- 
cipal bonds were accepted at 90 per cent of their market value, when 
not above par, when such bonds came within the provisions of the laws 
of the States of New York and Massachusetts governing investments by 
savings banks. At about this time bonds coming within the provisions 
of these laws became very scarce. Banks were then informed that bonds 
would be acceptable which came within the laws of Connecticut and New 
Jersey, thus making available many millions of bonds which were con- 
sidered as good security. 

The Department has exercised great caution in the acceptance of 
bonds as securities for deposits, and in nearly all cases where bonds were 
accepted which were not legal savings-bank bonds they were marketable 



68 THE MONET PANIC OF 1907. 

at a price equal to, and in sonie cases in excess of, that of savings-bank 
bonds. It was deemed wise, however., as they were not classed as savings- 
bank bonds, to accept them at a lower rate, namely, 75 per cent of their 
market value. In every case the Department has required an ample 
margin, and has every confidence in the soundness of the security it has 
accepted. It may be further stated that many of the bonds accepted by 
the Department, and thite is especially so in the case of Government bonds, 
are selling above par, which gives additional margin, and in those cases 
where the market price was above par no bonds have been accepted beyond 
90 per cent of their par value. 

The net result of the Treasury operations under the present admin- 
istration of the Department has not been to increase the principal of 
the public debt, or the interest chages upon it, in spite of the recent 
issues of securities. On the contrary, the principal of the interest- 
bearing debt declined from $920,099,510 on March 1, 1907, to $897,503,990 
on June 1, 1908. Interest charges stand at about $2,544,000 less than 
in March, 1907. 

The fact that there has been a net decrease in the principal of the 
debt is due to the redemption and payment of a considerable part of 
the 4 per cent funded loan of 1907, which by its terms was redeemable 
at the pleasure of the United States after July 1, 1907. Owing to the 
demand for money which arose in the spring of 1907, it was deemed ad- 
visable to anticipate the maturity of a part of these bonds by offering to 
pay the principal with interest to an amount not exceeding $25,000,000. 
This offer, which was made by a circular issued by the Department March 
14, 1907, resulted in redemptions between that date and June 24, of bonds 
to the amount of $25,088,750. 

In the meantime steps were taken to dispose of the remainder of 
the loan. Under the circular of April 2, 1907, inviting the surrender 
of $50,000,000 in the maturing bonds in exchange for 2 per cent con- 
sols of 1930, there were received for refunding between that date and 
May 31 bonds to the amount of $50,307,800. These measures left 
outstanding, subject to redemption, 4 per cent bonds to the amount of 
$36,121,450. Most of these bonds were received for redemption and the 
interest-bearing debt was reduced by about $36,000,000 during the month 
of July. 

The reduction obtained by the two operations, redemption in advance 
of maturity and ultimate redemption after maturity, was about $61,000,000. 
As the new issues of securities amounted on December 31 to $24,088,040 
in Panama Canal bonds and $15,436,500 in certificates of indebtedness, 
making a combined sum of $39,524,540, this increase of the debt fell about 
$21,500,000 short of the reduction previously made. 

Even more favorable is the showing in respect to annual interest 
charges. The redemption of about $61,000,000 4 per cent bonds ex- 
tinguished annual interest charges of $2»,440,000. The substitution of 
2 per cent bonds; for the remaining $50,000,000 of the 4 per cent loan 
reduced the interest charges by about $1,000,000 per annum. The total 
saving of about $3,440,000 is offset by the interest on the new securi- 
ties, which amounts to about $482,000 upon the Panama bonds and about 
$463,000 upon tne 3 per cent certificates, making a total additional in- 
terest charge of about $945,000. Offsetting this increase in charges 
against the reduction caused by the redemption and refunding of the 4 
per cent loan there emerges a saving for the current year of nearly $2,. 
500,000. 

As it has been shown that the issue of the Panama Canal bonds was 
a necessary incident to the construction of the canal and that substantially 
the only one possible criticism which could lie against the action of the de- 
partment was as to the exact date of the issue, it is fair to consider the in- 
terest payments upon the $15,436,500 in one-year certificates as representing 
the only important obligation incurred by the Treasury Department in seek- 
ing to ave.*t a financial disaster. The amount of interest upon these obli- 
gations will be about $462,000 if they run to maturity, or a little more 
than half of a cent per capita. It seemed to the Secretary that the benefit 
to the country as a whole, including the inhabitants of its most remote 
parts, would more than compensate this expenditure. The amount of 
such interest payments, moreover, is likely to be still further reduced by 
arrangements which have been made with certain of the banks to sur- 
render their certificates in advance of maturity with interest only to the 
date of such surrender. 

Owing to various other readjustments, including the fact that a con- 
siderable sum in the old 4 per cent loan in 1900 had not been presented 
for redemption or conversion, the estimated annual interest charges on the 
debt, which was $23,645,678 on March 1, 1907, stood on June 1, 1908, 
at $21,101,197. As the one-year certificates are not likely to be renewed, 
disbursements of interest on their account will cease within a year, and 
if no further change occurs in the principal of the interest-bearing debt, 
the reduction made in the interest charges between March 14, 1907 and 
November 30, 1908, will be approximately $3,000,000. 

Growth of Money in Circulation — The New Currency Law— 
The Treasury Department and the Money Panic. 

The net increase in the stock of money during- the last four 
years has been $587,C31,922, consisting- of gold, $302,393,065; sil- 
ver, $40,680,905, and national bank notes, $252,460,952, while 
there was a decrease of $8,402,000 in Treasury notes in 1890. 

The Treasury holdings of gold on June 30, 1908, amounted to 
$1,001,666,550, against $97,353,776 on January 31, 1895. 

The increase in small denomi nations. $10 and under, during 
the last four years has been $314,337,811, showing that there 
has been a marked increase in the demand for sma 1 ! bills to meet 
the requirements of trade and commerce. 



THE MONEY PANIC— NATIONAL BANKS. 69 

There has been much important legislation in currency mat- 
ters to meet the demands of the business interests of the coun- 
try, notable among- which may be mentioned the following en 
actments. which were passed upon recommendation of the Presi- 
dent in 190C : An increased supply of bills of small denomina- 
tions ; increase of the monthly limit of retirement of national 
bank notes from $3,000,000 to $9,000,000; authorizing the Secre- 
tary of the Treasury to receive other than United States bonds 
as security for public deposits, among which are State and mu- 
nicipal bonds and other securities that are acceptable as savings 
bank investments; the issue of $10 gold certificates; amendment 
to the law of 1900, permitting the issuance of United States 
notes in denominations less than $10 — ones, twos, and fives. 

National Banks and Growth of National Banking since the 
Beginning of 1900. 

The act of March 14, 1900, entitled "An act to define and fix 
the standard of value, to maintain the parity of all forms ot 
money issued or coined hy the United States, to refund the pub- 
lic debt, and for other purposes," commonly known as the "Gold 
Standard Act," gave a strong impetus to the organization oi' 
national banks, by reason of the fact that authority was granted 
for the formation of national banking associations with capital 
of $25,000, and added to the value of the note issuing franchise 
by permiting the issue of circulating notes to the par value of 
the United States bonds deposited as security therefor. From 
the date of the passage of that act to June 1, 1908, charters 
were granted to 3,889 associations, with authorized capital of 
$228,198,300. By reason of liquidations, voluntary and other- 
wise, the net increase in number of banks was 3,193. Capital 
stock increased from $616,308,095 to $925,697,775, a net increase 
of $309,389,680. Circulation outstanding increased during this 
period from $251,402,730 to $698,449,517, the net increase being 
$444,046,787. 

On February 13, 1900, the date of reports to the Comptroller 
of the Currency next previous to that of the passage of the gold 
standard act, there were in active operation 3,604 banks with ag- 
gregate resources of $4,674,910,710, of which $2,481,579,942 con- 
sisted of loans and discounts and $476,544,315 of lawful monev, 
that is, gold, silver, and legal tenders. The principal liabilities 
of the associations were as follows : Capital stock, $613,084,465 ; 
surplus and undivided profits, $363,872,959 ; circulation out- 
standing,- $204,912,544; individual deposits, $2,481,847,032. On 
May 14, ±908, the date of the latest reports to the Comptroller 
of the Currency, the number of national banking- associations in 
operation was 6,778, their loans and discounts $4,528,346,875, 
specie and other lawful money $861,326,450, and aggreg-ate re- 
sources $8,594,622,697. Capital' stock paid in amounted to $912,- 
361,919, surplus and other undivided profits $758,108,662, circu- 
lating notes outstanding $614,088,723, and individual deposits $4,- 
312,656,789. 

Comparing the condition of the banks on February 13, 1900, 
and May 14, 1908, there is shown to have been a net increase in 
number of associations of 3,174 ; in aggregate resources of $3.- 
919,711,984; in capital stock $299,277,454; in surplus and other 
undivided profits $394,235,698; in circulating notes $409,176,177. 
and in individual deposits $1,830,809,753. The percentages of 
increase were as follows: Number of banks. 88.07 per cent; ag- 
gregate resources. 83.85 per cent : capital stock, 48.82 per cent ; 
circulation. 199.68 per cent; individual deposits, 73.77 per cent. 

Classifying the returns by geographical divisions, the States 
in each division being shown in the accompanying table relatiug 
to the number and capital of national banks organized since 
March 14, 1900, it is noted that there has been an increase in 
the aggregate resources of banks in every section of the coun- 
try. In the New England States the number of banks decreased 
from 565 to 485 and the capital in the sum of $35,822,020: but 
the increase in surplus and undivided profits was $17,163,010, in 
circulation $16,390,368, and in individual deposits $65,034,438. 

The number of national banks in operation in the Fa stern 
States on February 13, 1900. was 976. and on May 14, 1908. 1.495. 
This iuerease in number of banks was attended by an increase iu 
capital stock to the extent of $116,424,214; surplus and undivided 



70 



TEE MONEY PANIC— NATION AL BANKS. 



profits, $187,694,952; circulating notes, $133,265,042, and indi- 
vidual deposits, $643,575,617. 

In the Southern States the number of banks in operation in- 
creased over 150 per cent, or about 545, to 1,369, resulting* in an 
increase in capital stock of $72,831,910; in surplus and undivided 
profits, $53,441,175; in circulating notes, $76,760,030, and indi- 
vidual deposits of $229,122,825. 

The number of banks in the Middle Western States was nearly 
doubled, the increase being from 1,053 to 1,931, and an increase 
in capital stock of $83,246,950 ; surplus and undivided profits, 
$85,917,020; circulation, $115,i26,149, and in individual deposits, 
$529,319,606 

The most notable increase in number of banks was in the 
Western States division, viz, 235 per cent, or about 346 to 1,161 
banks. The increase in capital stock in this division was $32,- 
385,700 ; in surplus and undivided profits, $23,875,439 ; circulating 
notes, $33,587,585, and individual deposits, $194,855,710. 

On February 13, 1900, there were in operation in the Pacific 
States 119 national banks, and on May 14, 1908, including five 
associations in the insular possessions, there were 336. The in- 
crease in capital in this division was $30,210,700; in surplus and 
undivided profits, $26,144,100; in circulation, $34,047,002, and in 
individual deposits, $168,901,555. The capital of the five banks 
in the insular possessions on May 14, 1908, was $710,000 ; sur- 
plus and undivided profits, $158,957 ; circulating notes outstand- 
ing, $385,747, and individual deposits, $1,134,176. 

The number of national banks classified by capital stock, or- 
ganized in each State and geographical division since March 14, 
1900, together with the number and paid-in capital stock of na- 
tional banks reporting to this office on May 14, 1908, are shown 
in the accompanying table : 



Summary, by States, geographical divisions, and classes, of na- 
tional banks organized March 14, 1900, to May 81, 1908, 
and the number and capital of reporting national banks on 
May lh, 1908. 



States, etc 


Capital 
—$50,000. 


Capital 
$50,000+. 


Total 
organizations 


Banks reporting 
on May 14, 1908. 


No. 


Capital. 


No. 


Capital. 


No. 


Capital. 


No. 


Capital. 




3 
4 
5 

1 

3 


$75,000 
105,000 
125,000 
25,000 

~~~~75~OO0 


5 
15 


$285,000 
200,000 
100,000 
4,000,000 
500,000 
200,000 


8 
6 
6 

16 
1 
7 


$360,000 
305,000 
225,000 
4,025,000 
500,000 
275,000 


77 
57 
51 
198 
22 
80 


$9,201,000 00 


New Hampshirt 

Vermont 

Massachusetts- 
Rhode Island. _ 
Connecticut — 


5,435,000 00 
5,710,000 00 

56.427,500 00 
6,700,250 00 

20,230,050 00 


Tot. New Eng- 
land States- 


16 


405.000 


28 

74 

26 

200 


5,285,000 


44 

148 

74 

386 

8 

39 

3 


5.690.000 


485 

420 
173 
764 
26 
101 

11 


103,703.800 00 


New York 

New Jersey 

Pennsylvania-. 


74 

48 

186 

8 

28 


1,892,500 

1,235,000 

4,797,000 

220,000 

747,000 


14,070,000 

1,885,000 

22,180,000 


15,962,500 
3,120,000 

26,977,000 

220,000 

1,677,000 

850,000 


158,657,320 00 

19,850,070 59 

112,978,974 00 

2,323,985 00 


Maryland 

District of 
Columbia 


11 
3 


930,000 
850,000 


17,824,950 00 
5,202,000 00 


Total Eastern 
States 


344 


8.891.500 


314 

27 
33 
22 
12 
37 
19 
31 
18 
17 
118 
21 
26 
20 


39,915,000 


658 

72 
68 
44 
17 
73 
29 
66 
21 
.28 
402 
36 
78 
46 


48,806,500 


1,495 

105 
95 
67 
29 
96 
39 
76 
29 
36 

529 
40 

146 
82 


316,372,299 59 


Virginia.., 

West Virginia-. 
North Carolina 
South Carolina 

Georgia 

Florida 

Alabama 

Mississippi 

Louisiana 

Texas 

Arkansas - 

Kentucky 

Tennessee 


45 
35 
22 

5 
36 
10 
35 

3 
11 
284 
15 
52 
26 

579 


1,206,000 
960,000 
580,000 
125,000 

1,020,000 

275,000 

929, i 500 

80,000 

280,000 

7,641,000 
375,000 

1,340,000 
675,000 


2,760,000 
2,605,000 
2,110,000 
1,485,000 
3,550,000 
3,450,000 
2,625,000 
1,765,000 
3,210,000 
10,550,000 
1,770,000 
3,645,000 
1,750,000 


3,966,000 
3,565,000 
2,690,000 
1,610,000 
4,570,000 
3,725,000 
3,554,500 
1,845.000 
3,490,000 
18,191,000 
2,145,000 
4,985,000 
2,425,000 


12,601,000 00 
8,019,250 00 
6.535,000 00 
4,210.000 00 

10,409,490 00 
4,691,350 00 
8,307,000 00 
3,401,980 00 
8,695,000 00 

40,163,000 00 
3,950,000 00 

16,370,900 00 
9,545,000 00 


Total South- 
ern States— 


15,486,000 


401 


41,275,000 


980 


56,761,500 


1,369 


136,899,870 00 



THE MOXEY PAXIC—BAXKS— CURRENCY LAW. 



71 



Summary by States, etc., of national banks— Continued. 



states, etc. 



Capital 



Ohio 

Indiana 

Illinois 

Michigan 

Wisconsin 

Minnesota 

Iowa 

Missouri 

Total Middle 
Western 
States 



North Dakota- 
South Dakota. 

Nebraska 

Kansas 

Montana 

Wyoming 

Colorado 

New Mexico.— 
Oklahoma 

Total West- 
ern States- 



Washington... 

Oregon 

California 

Idaho 

Utah 

Nevada 

Arizona 

Alaska 

Total Pacific 
States 

Hawaii _. 

Porto Rico 

Total Island 
Possessions 



No. Capital 



723 



27.? 



2,763,000 
2,278,000 
3,793.300 
265,000 
950,000 
4^71,000 
3,080,000 
1,160,000 



18,865,500 



2,740,000 

1,510,000 

2,490,000 

2,185.000 

375,000 

250,000 

1,376,000 

650,000 

7,000,000 



15,576,000 



Capital 
850,000+. 



Ao. Capital. 



347 



11, 22 5, WO 
6,200,00-0 

11,3.3-5,000 
4,390,000 
2,950,000 
3,250,000 
2,945,000 
7,485,000 



49,780,000 



400.000 

400,000 

1,375,000 

2,050,000 

610,000 
550,000 

2,450,000' 
525,000 

2,705,000 



160 11,065,000 



555.000 
676,000 
1,250,000 
580,000 
180,000 
25,000 
130,000 



19 1,445,000 
11 650,000 
61 10,212.500 



Total 
organizations 



No. Capital. 



150 13,993,000 
144 1 8,478,000 
15,128,500 
4,655,000 
3,900,000 
7,321,000 
6,025,000 
8,645,000 



215 
31 
60 

203 
167 

70 



Banks reporting 
on May 14, 1908. 



No. 



361 

23! 
407 
97 
128 

261 
317 
119 



68,645,50o'l, 




552 



134 3,396,000 



50,000 



10 



116 



600,000 

275,000 

1,125,000 

200.000 

50,000 



41 

38 
110. 

33 

11 



3,140,000 
1,910,000 
3,865,000 
4,235.000 
98-5,000 
S0O.0O0 
3,826,000 
1,175,000 
9,705,000 



12'-' 
87 
207 



Capital 



60,319,100 00 
24,916,4.50 00 
56,043,500 00 
14,755,000 00 
15,740,000 00 
20,666,000 00 
20,270,000 00 
30,455,000 00 



43,135,050 00 



4.610,000 00 
3,3S5.000 00 
13,245,000 00 



206 12,142.500 00 



39 
30 

114 
401 



20,641,000 1,161 



2,000,000 

1,326,000 

11,462,800 

1,180,000, 

455.000 

1,150,000 

330,000 

50,000 



3,705,000 00 
1,610,000 00 
9,465,000 00 
1,905,000 00 
12,212,700 00 



32,370,200 00 



14,557,800 250' 17,953,800 



50,000 



550,000 
1 100,000 



650,000 



4 600,000 
1 100,000 



700,000 



7,482,200 00 

4,103,700 00 

30,532,800 00 

1,855,000 00 

2,155,000.00 

1,707,000 00 

705,000 00 

100,000 00 



48,645,700 00 



610,000 00 
100,000 00 



(10,000 00 



Total United 
States 



2,520 35,670,500 1,369 162,527,800 3, .389 223,193,300 6,773 912,361,919 59 



THE CURRENCY LAW. 

From the opening of the first session of the Sixtieth Con- 
gress it was agreed by all Eepublicans that an honest attempt 
should be made to enact into law a Currency bill which should 
provide for any future emergency and prevent a repetition of a 
panic such as we had last fall. Early in the session the Eepub- 
licans reported a bill knowri as the Vreeland bill and it passed 
the House by a good majorit}-. During its consideration the 
Eepublicans gave the Democrats an opportunity to vote upon 
the so-called Williams bill, which had had the approval of Mr. 
Bryan, but the Democrats refused to vote even for their own bill, 
and persisted in a useless filibuster, but could not prevent the 
passage of the Eepublican bill. 

In the Senate the so-called Aldrich bill was passed and con- 
ference committees were appointed in both houses. It was found, 
however, that the House would not accept the Aldrich bill, and 
that the Senate would not accept the Vreeland bill, and it was 
not until the end of the session that a so-called conference bill 
was agreed upon by the Conference Committee of both Houses. 
This bill was introduced into the House on May 27th, and passed 
by a vote of 166 to 140, the Eepublicans voting in the affirma- 
tive and the Democrats in the negative. The same conference 
bill was introduced the following day im the Senate and paeted 



72 TEE MONEY PANIC— THE CURRENCY LAW. 

that body on Saturday, May 30th, after a filibuster had been 
attempted against the bill by the Democrats. 

In speaking upon the measure during its consideration in the 
House Kepresentative Burton, of Ohio, said: 

Mr. Speaker, the incompetency of the Democratic party to rule this 
people was never more emphatically displayed than by their course on 
this currency legislation. Last autumfi there was a frightful panic The 
mightiest financial institutions tottered as if they would fall and wheels 
of commerce and industry were clogged, hundreds of thousand 'were thrown 
out of employment and much of the cause of this distressful condition 
was the rigidity and insufficiency of our currency system. 

The Republicans of this House came here determined, in spite ol 
barren theories, in spite of selfish interests, and against the solid oppo- 
sition of the Democratic party, to do something for this country, so that 
such a calamity might not occur again. [Applause on the Republican 
side.] 

If you gentlemen had been in power and had gone home, having done 
nothing, you might better have called on the rocks and the hills to fall 
on you because of your inability to take care of this most urgent prob- 
lem. And yet you fill the air with cries that this measure is prompted 
only by political emergency, that it is partisan. Gentlemen, if there is 
any question which should be approached dispassionately, if there is any 
question wherein we should seek to grasp the real situation and solve 
it, it is this which relates to the money supply of the country. 

********* 

But this bill throws open to any national bank of the country the 
opportunity to become a member of an association of banks, each of which 
may issue currency upon its resources — that is, upon commercial paper 
or securities approved by the association. 

There must be at least ten banks associated, having a capital and' 
surplus of not less than $5,000,000. But if any single banking asso- 
ciation having public bonds wishes to issue currency under the method 
embodied in the Aldrich bill, it may do so. 

On this side we have had the courage to bring forward a measure 
for the relief of the country and to meet the fear of panic and distress; 
on the other side you have fled from your own measure. And now you 
accuse others because they introduce a bill for the purpose of meeting 
the existing situation, containing a principle to which even you cannot 
make objection. 

********* 

The provisions of the bill agreed upon may not be permanent. We 
have placed a time limit upon them to satisfy that potent public opinion 
which believes that we ought to have an entire reorganization of our 
whole banking system. Some, no doubt, will maintain that these pro- 
visions will work so well that no such readjustment will be required. 
At any rate, we are advocating the passage of a law which has in it 
no element of danger. No bank note can be issued which will not be 
good anywhere on the globe. The tax is so high that there can be no 
danger of any inflation. The redemption fund of 10 per cent substituted 
for the reserve provision in the House bill is, I believe, an improve- 
ment. And with this on the Statute books the ship of commerce may go 
out into the most stormy sea with the hope that, though tempests may 
come, she will weather them all, and weather them in safety. [Pro- 
longed applause on the Republican side.] 

The bill as it became a law is as follows : . 

THE NEW CURRENCY LAW. 

An Act to Amend the National Banking Laws. 

Be it enacted by the Senate and House of Representatices of the United 
States of America in Congress assembled, That national banking as- 
sociations, each having an unimpaired capital and a surplus of not less ■ 
than twenty per centum, not less than ten in number, having an aggre- 
gate capital and surplus of at least five millions of dollars, may form 
voluntary associations to be designated as national currency associations. 
The banks uniting to form such association shall, by their presidents 
or vice-presidents, acting under authority from the board of directors, 
make and file with the Secretary of the Treasury a certificate setting forth 
the names of the banks composing the association, the principal place of 
business of the association, and the name of the association, which name 
shall be subject to the approval of the Secretary of the Treasury. Upon 
the filing of such certificate the associated banks therein named shall 
become a body corporate, and by the name so designated and approved 
may sue and be sued and exercise the powers of a body corporate for 
the purposes hereinafter mentioned : Provided, That not more than one! 
such national currency association shall be formed in any city : Pro- ' 
vided, further, That the several members of such national currency as- 
sociation shall be taken, as nearly as conveniently may be, from a ter- 
ritory composed of a State or part of a State, or contiguous parts of one 
or more States : And provided further, That any national bank in such 
city or territory, having the qualifications herein prescribed for mem- 
bership in such national currency association, shall, upon its application 
to and upon the approval of the Secretary of the Treasury, be admitted 
to membership in a national currency association for that city or ter- 
ritory, and upon such admission shall be deemed and held a part of the body 
corporate, and as such entitled to all the rights and privileges and subject to 
all the liabilities of an original member : And provided further, That each 
national currency association shall be composed exclusively of banks 
not members of any other national currency association. 

The dissolution, voluntary or otherwise, of any bank in such associ- 
ation shall not affect the corporate existence of the association unless 






THE MOSEY PANIC— THE CURRENCY LAW: 73 

there shall then remain less than the minimum number of ten banks : 
-, That the reduction of the number of said banks below 
the minimum of ten shall not affect the existence of the corporation 
with respect to the assertion of all rights in favor of or against 

tiou. The affairs of the association shall be managed by a boar.l 
consisting of one representative from each bank. By-laws for the gov- 
ernment of the association shall be made by the board, subject to the 
approval of the Secretary of the Treasury. A president, vice-president, 
ary; treasurer, and an executive comrxfittee of not less than five 
members, shall be elected to the board. The powers of such b .ard, except 
in th^ election of officers and making of by-laws, may be exercised through 
its executive committee. 

The national currency association herein provided for shall have and 
exercise any and all powers necessary to carry out the purposes of this 
section, namely, to render available, under the direction and control of 
the Secretary of the Treasury, as a basis for additional circular! n, any 
securities, including commercial paper, held by a national banking a 
atir.n. For the purpose of obtaining such additional circulation, any 
bank belonging to any national banking association, having circulat ng 
notes outstanding secured by the deposit of bonds of the Lnited States 
to an amount not less than forty per centum of its capita! stock, and 
which has its capital unimpaired and a surplus of not less than twenty 
per centum, may deposit with and transfer to the association, in trust 
for the United States, for the purpose hereinafter provide.!, such of the 
securities above mentioned as may be satisfactory to the board of the 
association. The officers of the association may thereupon, in behalf 
of such bank, make application to the Comptroller of the Currency for 
an issue of additional circulating notes to an amount not exceeding -eventy- 
five per centum of the cash value of the securities or commercial paper 
so deposited. The Comptroller of the Currency shall immediately trans- 
mit such application to the Secretary of the Treasury with such recom- 
mendation as he thinks proper. r>nd : f in the judgment of the 3?cretary 
of the Treasury, business conditions in the locality demand additional 
circulation, and if he be satisfied with the character and value of the 
securities proposed and that a lien in favor of the United States on the 
securities so deposited and on the assets of the banks composing the as- 
sociation will be amply .sufficient for the protection of the United States, 
he may direct an issue of additional circulating notes to the association, 
on behalf of such bank, to an amount in his discretion, not, however, ex- 
ceeding seventy-five per centum of the cash value of the securities so 
deposited : Provided, That upon the deposit of any of the State, city, 
town, county, or other municipal bonds of a character described in sec- 
tion three of this Act, circulating notes may be issued to the extent of 
not exceeding ninety per centum of the market value of such bonds so 
deposited : And provided further. That no national banking association shall 
be authorized in any event to issue circulating nates based on commercial 
paper in excess of thirty per centum of its unimpaired, capital and sur- 
plus. ;The term "commercial paper" shall be held to include only notes 
representing actual commercial transactions, which when accepted by the 
association shall bear the names of at least two responsible parties an 1 
have not exceeding four months to run. i 

The banks and the assets of all banks belonging to the association 
shall be jointly and severally liable to the United States for the redemp- 
tion of such additional circulation ; and to secure such liability the lien 
created by section fifty-two hundred and thirty of the Revised Statutes 
shall extend to and cover the assets of all banks belonging to the asso- 
ciation, and to the securities deposited by the banks with the association 
pursuant to the provisions of this Act : but as between the several banks 
composing such asscciation each bank shall be liable only in the pro- 
portion that its capital and surplus bears to the aggregate capital and 
surplus of all such banks. The association may, at ans time, require 
of any of its constituent banks a deposit of additional securities or 
commercial paper, or an exchange of the securities already on deposit, 
to secure such additional circulation : and in case of the failure of such 
bank to make such deposit or exchange the association may. after ten 
notice to the bank, sell the securities and paper already in its 
hands at public sale, and deposit the proceeds with the Treasurer of 
the United States as a fund for the redemption of such additional cir- 
culation. If such fund be insufficient for that purpose, the association 
may recover from the bank the amount of the deficiency by suit in the 
Circuit Court of the United States, and shall have the benefit of the lien 
hereinbefore provided for in favor of the United States upon the assets 
of such bank. The association or the Secretary of the Treasury may 
permit or require the withdrawal of any such securities or commercial 
paper and the substitution of other securities or commercial paper of 
equal value therefor. 

Sec. 2. That whenever any bank belonging to a national currency 
association shall fail to preserve or make good its redemption fund in 
the Treasury of the United States, required by section three of the Act 
of June twentieth, eighteen hundred --nd seventy-four, chapter three 
hundred and forty-three, and the provisions of this Act. the Treasurer 
of the United States sh?ll notify such national currency association to 
make good such redemption fund, and upon the failure of such national 
currency association to make good snob fund, the Treasurer of the United 
may, in his discretion, apoly so much of the redemption fund 
belonging to the other banks composing such national currency associ- 
ation as mav be necessary for that purpose: and such national currency 
after five days*' notice to such bank, proceed to sell at 
sale tho securities so deposited by such bank with the association 
i reliant to the provisions of section one of this Act. and deposit the 
itb the Treasurer of the United States as a fund for the re- 
demption of tne additional circulation taken out bv such bank under this 
Act! 

3. That any national banking association which has circulating 
note- outstanding, secured by the deposit of United States bonds, to an 



74 THE MONEY PANIC— THE CURRENCY LAW. 

amount of not less than forty per centum of its capital stock, and which 
has a surplus of not less than twenty per centum, may make application 
to the Comptroller of the Currency for authority to issue additional cir- 
culating notes to be secured by the deposit of bonds other than bonds 
of the United States. The Comptroller of the Currency shall transmit 
immediately the application, with his recommendation, to the Secretary 
of the Treasury, who shall, if in his judgment business conditions in the 
locality demand additional circulation, approve the same, and shall de- 
termine the time of issue » and fix the amount, within the limitations 
herein imposed, of the additional circulating notes to be issued. When- 
ever after receiving notice of such approval any such association shall 
deposit with the Treasurer or any Assistant Treasurer of the United 
States such of the bonds described in this section as shall be approved 
in character and amount by the Treasurer of the United States and the 
Secretary of the Treasury, it shall be entitled to receive, upon the order 
of the Comptroller of the Currency, circulating notes in blank, registered 
and countersigned as approved by law, not exceeding in amount ninety 
per centum of the market value, but not in excess of the par value of 
any bonds so deposited, such market value to be ascertained and determined 
under the direction of the Secretary of the Treasury. 

The Treasurer of the United States, with the approval of the Sec- 
retary of the Treasury, shall accept as security for the additional cir- 
culating notes provided for in this section, bonds or other interest-bearing 
obligations of any State of the United States, or any legally authorized 
bonds issued by any city, town, county, or other legally constituted 
municipality or district in the United States which has been in existence 
for a period of ten years, and which for a period of ten years previous 
to such deposit has not defaulted in the payment of any part of either 
principal or interest of any funded debt authorized to be contracted by 
it, and whose net funded indebtedness does not exceed ten per centum 
of the valuation of "its taxable property, to be ascertained by the last 
preceding valuation of property for the assessment of taxes. The Treas- 
urer of the United States, with the approval of the Secretary of the 
Treasury, shall accept, for the purposes of this section, securities herein 
enumerated in such proportions as he may from time to time determine, 
and he may with such approval at any time require the deposit of addi- 
tional securities, or require any association to change the character of 
the securities already on deposit. ' 

Sec. 4. That the legal title of all bonds, whether coupon or reg- 
istered, deposited to secure circulating notes issued in accordance with the 
terms of section three of this Act, shall be transferred to the Treasurer 
of the United States in trust for the association depositing them, under 
regulations to be prescribed by the Secretary of the Treasury. A receipt 
shall be given to the association by the Treasurer or any Assistant Treas- 
urer of the United States, stating that such bond is held in trust for 
the association on whose behalf the transfer is made, and as security 
for the redemption and payment of any circulating notes that have been 
or may be delivered to such association. No assignment or transfer of 
any such bond by the Treasurer shall be deemed valid unless counter- 
signed by the Comptroller of the Currency. The provisions of sections 
fifty-one 'hundred and sixty-three, fifty-one hundred and sixty- 
four, fifty-one hundred and sixty-five, fifty-one hundred and sixty-six, and 
fifty-one hundred and sixty-seven, and sections fifty-two hundred and twen- 
ty-four to fifty-two hundred and thirty-four, inclusive, of the Revised 
Statutes respecting United States bonds deposited to secure circulating 
notes shall, except as herein modified, be applicable to all bonds deposited 
under the terms of section three of this Act. 

Sec. 5. That the additional circulating notes issued under this Act 
shall be used, held, and treated in the same way as circulating notes of 
national banking associations heretofore issued and secured by a deposit 
of United States bonds, and shall be subject to all the provisions of law 
affecting such notes except as herein expressly modified : Provided, That 
the total amount of circulating notes outstanding of any national banking 
association, including notes secured by United States bonds as now pro- 
vided by law, and notes secured otherwise than by deposit of such bonds, 
shall not at any time exceed the amount of its unimpaired capital and 
surplus : And provided further, That there shall not be outstanding at an> 
time circulating notes issued under the provisions of this Act to an amount 
of more than five hundred millions of dollars. 

Sec. 6. That whenever and so long as any national banking associ- 
ation has outstanding any of the additional circulating notes authorized 
to be issued by the provisions of this Act it shall keep on deposit in the 
Treasury of the United States, in addition to the redemption fund required 
by section three of the Act of June twentieth, eighteen hundred and seven- 
ty-four, an additional sum equal to five per centum of such additional 
ciruclation at any time outstanding, such additional five per centum to 
be treated, held, and used in all respects in the same manner as the 
original redemption fund provided for by said section three of the Act 
of June twentieth, eighteen hundred and seventy-four. 

Sec. 7. In order that the distribution of notes to be issued under the 
provisions of this Act shall be made as equitable as practicable between 
the various sections of the country, the Secretary of the Treasury shall 
not approve applications from associations in any State in excess of the 
amount to which such State would be entitled of the additional notes 
herein authorized on the basis of the proportion which the unimpaired capi- 
tal and surplus of the national banking associations in such state bears 
to the total amount of unimpaired capital and surplus of the national 
banking associations of the United States: Provided, however, That in 
case the applications for associations in any State shall not be equal 
to the amount which the associations of such State would be entitled to 
under this method of distribution, the Secretary of the Treasury may, 
in his discretion, to meet an emergency, assign the amount not thus 
applied for to any applying association or associations in States in the same 
section of the country. 



THE MONEY PANIC— THE CURRENCY LAW. 75 

Sec. 8. That it shall be the duty of the Secretary of the Treasury 
to obtain information with reference to the value and character of the 
securities authorized to be accepted under the provisions of this Act, and 
he shall from time to time furnish information to national banking as- 
sociations as to such securities as would be acceptable under the provisions 
of this Act. 

Sec. 9. That section fifty-two Hundred and fourteen of the Revised 
Statutes, as amended, be further amended to read as follows : 

"Sec. 5214. National banking associations having on deposit bonds 
of the United States, bearing interest at the rate of two per centum 
per annum, including the bonds issued for the construction of the Panama 
Canal, under the provisions of section eight of 'An Act to provide for 
the construction of a canal connecting the waters of the Atlantic and 
Pacific oceans,' approved June twenty-eighth, nineteen hundred and two, 
to secure its circulating notes, shall pay to the Treasurer of the United 
States, in the months of January and July, a tax of one-fourth of one 
per centum each half year upon the average amount of such notes in 
circulation as are based upon the deposit of such bonds ; and such asso- 
ciations having on deposit bonds of the United States bearing interest 
at a rate higher than two per centum per annum shall pay a tax of 
one-half of one per centum each half year upon the average amount of 
its notes in circulation as are based upon the deposit of such bonds. 
National banking associations having circulating notes secured otherwise 
than by bonds of the United States shall pay for the first month a tax 
at the rate of five per centum per annum upon the average amount of 
such of their notes in circulation as are based upon the deposit of such 
securities, and afterwards an additional tax of one per centum per annum 
for oach month until a tax of ten per centum per annum is reached, 
and thereafter such tax of ten per centum per annum, upon the average 
amount of such notes. Every national banking association having out- 
standing circulating notes secured by a deposit of other securities than 
United States bonds shall make monthly returns, under oath of its presi- 
dent or cashier, to the Treasurer of the United States, in such form 
as the Treasurer may prescribe, of the average monthly amount of its 
notes so secured in circulation ; and it shall be the duty of the Comptroller 
of the Currency to cause such reports of notes in circulation to be verified 
by examination of the banks' records. The taxes received on circulating 
notes secured otherwise than by bonds of the United States shall be paid 
into the Division of Redemption of the Treasury and credited and added 
to the reserve fund held for the redemption of United States and other 
notes." w 

Sec. 10. That section nine of the Act approved July twelfth, eighteen 
hundred and eighty-two, as amended by the Act approved March fourth, 
nineteen hundred and seven, be further amended to read as follows : 

"Sec. 9. That any national banking association desiring to withdraw 
its circulating notes, secured by deposit of United States bonds in the 
manner provided in section four of the Act approved June twentieth, 
eighteen hundred and seventy-four, is hereby authorized for that pur- 
pose to deposit lawful money with the Treasurer of the United States and, 
with the consent of the Comptroller of the Currency and the approval 
of the Secretary of the Treasury, to withdraw a proportionate amount 
of bonds held as security for its circulating notes in the order of such 
deposits : Provided, That not more than nine millions of dollars of lawful 
money shall be so deposited during any calendar month for this purpose. 

"Any national banking association desiring to withdraw any of its 
circulating notes, secured by the deposit of securities other than bonds 
of the United States, may make such withdrawal at any time in like 
manner and effect by the deposit of lawful money or national bank notes 
with the Treasurer of the United States, and upon such deposit a pro- 
portionate share of the securities so deposited may be withdrawn : P7'o 
vided. That the deposits under this section to retire notes secured by the 
deposit of securities other than bonds of the United States shall not 
be covered into the Treasury, as required by section six of an Act en- 
titled 'An Act directing the purchase of silver bullion and the issue of 
Treasury notes thereon, and for other purposes,' approved July fourteenth, 
eighteen hundred and ninety, but shall be retained in the Treasury for the 
purpose of redeeming the notes of the bank making such deposit." 

Sec. 11. That section fifty-one hundred and seventy-two of the Re- 
vised Statutes be, and the same is hereby amended to read as follows: 

"Sec. 5172. In order to furnish suitable notes for circulation, the 
Comptroller of the Currency shall, under the direction of the Secretary 
of the Treasury, cause plates and dies to be engraved, in the best manner 
to guard against counterfeiting and fraudulent alterations, and shall have 
printed therefrom, and numbered, such quantity of circulating notes, in 
blank, of the denominations of five dollars, ten dollars, twenty dollars, 
fifty dollars, one hundred dollars, five hundred dollars, one thousand 
dollars, and ten thousand dollars, as may be required to supply the as- 
sociations entitled to receive the same. Such notes shall state upon 
their face that they are secured by United States bonds or other securi- 
ties, certified by the written or engraved signatures of the Treasurer 
and Register and by the imprint of the seal of the Treasury. They 
shall also express upon their face the promise of the association receiving 
the same to pay on demand, attested by the signature of the president 
or vice-president and cashier. The Comptroller of the Currency, acting 
under the direction of the Secretary of the Treasury, shall as soon as 
practicable, cause to be prepared circulating notes in blank, registered 
and countersigned, as provided by law, to an amount equal to fifty per 
centum of the capital stock of each national banking association ; such 
notes to be deposited in the Treasury or in the sub-treasury of the 
United States nearest the place of business of each association, and to 
be held for such association, subject to the order of the Comptroller of 
the Currency, for their delivery as provided by law : Provided. That the 
Comptroller of the Currency may issue national bank notes of the present 
form until plates can be prepared and circulating notes Issued as above 



76 THE MONEY PANIC— THE CURRENCY LAW. 

provided : ~ Provided, hoivever, That in no event shall bank notes of the 
present form be issued to any bank as additional circulation provided 
for by this Act." 

Sec. 12. That circulating notes of national banking associations, when 
presented to the Treasury for redemption, as provided in section three 
of the Act approved June twentieth, eighteen hundred and seventy-four, 
shall be redeemed in lawful money of the United States. 

Sec. 13. That all acts and orders of the Comptroller of the Currency 
and the Treasurer of the United States authorized by this Act shall have 
the approval of the Secretary of the Treasury, who shall have power, 
also, to make any such rules and regulations and exercise such control 
over the organization and management of national currency associations 
as may be necessary to carry out the purposes of this Act. 

Sec. 14. That the provisions of section fifty-one hundred and ninety- 
one of the Revised Statutes, with reference to the reserves of national 
banking associations, shall not apply to deposits of public moneys by the 
United States in designated depositories. 

Sec. 15. That all national banking associations designated as regu- 
lar depositories of public money shall pay upon all special and additional 
deposits made by the Secretary of the Treasury in such depositories, and 
all such associations designated as temporary depositories of public money, 
shall pay upon all sums of money deposited in such associations interest 
at such rate as the Secretary of the Treasury may prescribe, not less, 
however, than one per centum per annum upon the average monthly 
amount of such deposits : Provided, however, That nothing contained in 
this Act shall be construed to change or modify the obligation of any 
association or any of its officers for the safe-keeping of public money : 
Provided, further, That the rate of interest charged upon such deposits 
shall be equal and uniform throughout the United States. 

Sec. 16. That a sum sufficient to carry out the purposes of the pre- 
ceding sections of this Act is hereby appropriated out of any money in 
the Treasury not otherwise appropriated. 

Sec. 17. That a Commission is hereby created, to be called the 
"National Monetary Commission," to be composed of nine members of the 
Senate, to be appointed by the Presiding Officer thereof, and nine mem- 
bers of the House of Representatives, to be appointed by the Speaker 
thereof ; and any vacancy on the Commission shall be filled in the same 
manner as the original appointment. 

Sec. 18. That it shall be the duty of this Commission to inquire into, 
and report to Congress at the earliest date practicable, what changes are 
necessary or desirable in the monetary system of the United States or 
in the laws relating to banking and currency, and for this purpose they 
are authorized to sit during the sessions or recess of Congress, at such 
times and places as they may deem desirable, to send for persons and 
papers, to administer oaths, to summon and compel the attendance of wit- 
nesses, and to employ a disbursing officer and such secretaries, experts, 
stenographers, messengers, and other assistants as shall be necessary to 
carry out the purposes for which said Commission was created. The 
Commission shall have the power, through sub-committee or otherwise, 
to examine witnesses and to make such investigations and examinations, 
in this or other countries, of the subjects committed to their charge as 
they shall deem necessary. 

Sec* 19. That a sum sufficient to carry out the purposes of sections 
seventeen and eighteen of this Act, and to pay the necessary expenses of 
the Commission and its members, is hereby appropriated out of any money 
in the Treasury not otherwise appropriated. Said appropriation shall be 
immediately available and shall be paid put on the audit and order of the 
chairman or acting chairman of said Commission, which order and audit 
shall be conclusive and binding upon all Departments as to the correctness 
of the accounts of such Commission. 

Sec. 20. That this Act shall expire by limitation on the thirtieth 
day of June, nineteen hundred and fourteen. 

Approved May 30, 1908. 



THE CURRENCY LAW. 

Its Provisions Outlined by an Accepted and Unprejudiced 
Authority. 

[From "Bradstreets," May 30, 1908.] 

The bill is, as was to be expected, a compromise, measure, in 
which the conferees have combined as far as possible the fea- 
tures of the Aldrich and Vreeland bills. It empowers national 
banking associations, each having- an unimpaired capital and a 
surplus of not less than 20 per cent, not less than ten in number, 
and having an aggregate capital and surplus of not less than 
$5,000,000, to form voluntary associations to be designated as 
National Currency Associations. The banks uniting to form such 
associations are required through their officers to file with the 
Secretary of the Treasury certificates setting forth the names 
of the associations and of the banks composing them and their 
principal place of business, whereupon the associated baiitfas 



THE MONEY PANIC— THE CURRENCY LAW. 77 

named in each certificate are to become a body corporate, enti- 
tled to sue and be sued and to exercise the powers of a body 
corporate for the purpose of the bill. Not more than or** 1 

association is to be formed in any city ; the members thereof 
are to be taken as nearly as conveniently may be from a terri- 
tory composed of a state or part of a state or contiguous parts 
of one or more states, and no member of one national currency 
association is to be a member of another, but any national bank 
within the territory of an association having- the requisite quali- 
fications is entitled to become a member thereof. The affairs of 
each association are to be managed by a board consisting of one 
representative from each bank. 

In order to obtain additional circulation, any bank belonging 
to a national currency association having circulating notes out- 
standing secured by the deposit of United States bonds to an 
amount not less than 40 per cent of its capital stock, and which 
has its capital unimpaired and a surplus of not less than 20 
per cent, may deposit with and transfer to the association in 
trust for the United States such securities held by it, including 
commercial paper, as may be satisfactory to the board of the 
association, whose officers may thereupon in behalf of such bank 
apply to the Comptroller of the Currency for an issue of ad- 
ditional circulating notes, not exceeding 75 per cent of the cash 
value of the securities or commercial paper so deposited. The 
application is to be immediately transmitted by the Comptroller 
with such recommendation as he shall think proper to the 
Secretary of the Treasuiy, who ma}' direct an issue of additional 
notes to the association on behalf of the applying bank to an 
amount in his discretion not exceeding 75 per cent of the cash 
value of the securities deposited, provided that in his ji dgment 
business conditions in the locality demand additional circula- 
tion ; that he is satisfied with the character and value of the 
securities proposed, and that a lien in favor of the United States 
on the securities deposited and on the assets of the banks com- 
posing the association will be amply sufficient to protect the 
government. Upon the deposit of state, county, or mun sinai 
bonds, circulating notes may be issued to not exceeding 90 per 
cent of the market value thereof, but no national bank is to oe 
authorized in any event to issue circulating notes based on com- 
mercial paper in excess of 30 per cent of its unimpaired capital 
and surplus. The term "commercial paper," as used in the bill- 
is defined to include only notes representing actual commercial 
transactions, which when accepted by the association shall bear 
the names of at least two responsible parties and have not 
exceeding four months to run. 

As a means of additional security for the notes issued under 
the bill, it is provided that the banks and the assets of all banks 
belonging to the association to whom they are issved shall be 
jointly and severally liable for the redemption thereof, and the 
lien created by section 5230 of the Revised Statutes is extended 
to cover the assets of all banks belonging to the association and 
the securities deposited by the banks with the ass' ciation, 
though as between the several banks composing such association 
each bank will be liable only in the proportion that its aggregate 
capital and surplus bear to the aggregate capital and surplus of 
all such banks. Associations may at any time require from any 
of their constituent banks a deposit of additional securities or 
commercial paper or an exchange of securities already on de- 
posit, and in case of the failure of a bank to meet such require- 
ment may, after ten days' notice to the bank, sell the se<- *s 
and paper already in their hands at public sale and depesit the 
proceeds with the Treasurer of the United States as a fund for 
the redemption of the additional circulation, or in case of the in- 
sufficiency thereof may recover the amount of the deficiency 
by suit. In the event of any bank failing to preserve or make 
good its redemption fund, the national currency association of 
which it is a member may be notified to do so, and in the event 
of its failure the Treasurer of. the United States is authorized 
to apply so much of the redemption fund of the other banks com- 
posing 1 ho association as iunv be necessary for the purpose. 

As already intimated above, bonds other than t!n>." of the 
United States may be accepted as security for additional cir- 



78 TEE MONEY PANIC— TEE CURRENCY LAW. 

culation. With the approval of the Secretary of the Treasury, 
the Treasurer of the United States is to accept for that purpose 
bonds or other interest-bearing obligations of any state of the 
United States, or any legally authorized bonds issued by any 
city, town, county or other legally constituted municipality yr 
district in the United States which has been in existence for a 
period of ten years, and which for a period of ten years pre- 
vious to the deposit thereof has not defaulted in the payment 
of any part of either principal or interest of any funded debt 
authorized to be contracted by it, and whose net founded indebt- 
edness does not exceed 10 per cent of the valuation of its ta x 
able property. The legal title of all bonds deposited is to be 
transferred to the Treasurer of the United States in trust for 
the association depositing them. 

The notes issued under the bill are to be used, held and 
treated in the same way as national bank notes heretofore issued 
and subject to the provisions of law affecting such note-; except 
as modified in the bill. The total amount of outstanding cir- 
culating notes of any bank, however, must not exceed the amount 
of its unimpaired capital and surplus, and the total amount of 
notes issued under the bill must not at any time exceed 
$500,000,000. While any bank has outstanding any of the ad- 
ditional circulation authorized by the bill, it is required to keep 
on deposit in the Treasury, besides the redemption fund re- 
quired under the act of June 20, 1874, an additional sum equal 
to 5 per cent of such additional circulation, to be held and 
treated in the same manner as provided by that act. To secure 
an equitable distribution of the notes issued under the bill, it 
is provided that the Secretary of the Treasury shall not approve 
applications from any state in excess of the amount to which 
such state would be entitled on the basis of the proportion borne 
by the unimpaired capital and surplus of the banks of that 
state to those of the banks of the whole country, provided 
where the applications from any state are below its propor- 
tion the Secretary of the Treasury, to meet an emergency, may 
assign the amount not applied for to any applying association 
in another state in the same section of the country. 

The tax on the additional circulation is fixed by the bill for 
the first month at the rate of 5 per cent per annum upon the 
average amount of such notes in circulation, with an additional 
tax of 1 per cent per annum for each month afterward until 
a tax of 10 per cent per annum is reached, and thereafter a tax 
of 10 per cent per annum upon the average amount of the notes. 
These taxes are to be added to the reserve fan 3 held for the 
redemption of United States and other notes. Provision is m.i 
for the appointment of a currency commission, consisting of 
nine members from each branch of the national legislature, to 
report what changes are desirable in the monetary system of 
the United States or in the laws relating to banking and cur- 
rency, such commission to sit during the sessions or recess of 
Congress. 

A Measure of Panic Insurance. 
[From the Wall Street Journal.] x 

In the first place, it certainly does provide a measure of 
protection against the worst effects of such a financial crista 
as we had last winter. It provides for the issue of emergency 
currency up to $500,000,000 that could be issued quickly by 
national banks in case any scare developed that led to with- 
drawal of reserve money into hoarding places. That is «orriy. 
thing so invaluable to the financial system of the United States 
that, however defective the mechanism to accomplish this may 
be and however short it- may fall of a thorough-going reorgani- 
ation of the banking and currency laws of the United States, 
it must be accepted as a great relief measure. It is panic in- 
surance. 

Moreover, in accomplishing this it does so with a frank ac- 
knowledgment that the law is a temporary expedient. This 
acknowledgement is made in the last section of the bill, which 
provides that the Act shall expire by limitation on June 30, 
1914. In the meantime a national monetary commission is pro- 
vided for, which is to report what changes are necessary in the 






TEE MONEY PANIC— MONEY OF THE TVORLD. 79 

laws relating 1 to banking* and currency. The purpose is that 
between now and 1914 a really comprehensive and scientific 
sj-stem of banking shall be enacted. 

Ex-Secretary Shaw on Cause of Panics. 

At the meeting of the National Business League of Chicago 
ex-Secretary Shaw said: 

"The American people have been living extravagantly and this prac- 
tice has become well-nigh universal, and applies as much to the West 
as to the East. Boldness in business has also been the rule. In the 
agricultural States men have purchased lands, paying part cash, and 
have felt perfectly safe with a mortgage representing 50 per cent of 
the prospective value. City and suburban property has been purchased 
in the same way. Others have purchased well-known and high-grade 
stocks and bonds as investments, but have borrowed a part of the pur- 
chase price. Timber, coal lands and mining enterprises have been cap- 
italized, and every locality, East, West, North, and South, has aided in their 
flotation. Commercial, industrial, and electric railway enterprises have 
been projected, and securities thus created have found a ready market 
in rural as well as in urban communities. Meantime, everyone has de- 
nounced the speculator and none have been more generous of criticism 
than those most guilty. 

"It has been popular for several years to speak disparagingly of 
American business men, their methods, and the institutions with which 
they have been connected. With few exceptions, both the secular and 
the religious press have vied with magazine writers, Chautauqua lec- 
turers, and ambitious politicians in painting in most somber colors every- 
thing American, and in gazetting as unworthy of confidence, quite indis- 
criminately, American business men. A few most shameful disclosures 
have been held up quite universally as fair illustrations of conditions 
generally instead of exceptions. Threats of criminal prosecutions of un- 
named persons on undefined and indefinite charges have been liberally 
exploited. Naturally these things have had their influence. Universal 
business confidence cannot be maintained indefinitely in the face of uni- 
versal denunciation, and when confidence forsakes us there is nothing 
left on which to rest our business and industrial superstructure. { 

"Lest I might be misunderstood, I want to make it clear that in 
my judgment this country will never outgrow the lift toward civic and busi- 
ness righteousness resulting from the policy of strict enforcement of law 
which has characterized the administration of President Roosevelt. I am 
equally certain that it will take us some years to outgrow the evil effects 
resulting from agitation, reckless legislation, and ill-considered prose- 
cutions by those who have been unable to appreciate the President's pur- 
poses." 



MONEY OF THE WORLD. 

Stocks of Money in the Principal Countries of the "World, in 
1873, 1896, and 1906. 

This table, which shows the quantity of gold, silver, and un- 
covered paper in each of the principal countries for which figures 
are available, compares the quantities of these various classes 
of money in 1906 with that of 1896, the period of the silver 
agitation in the United States, and with that of 1873, the earliest 
year for which figures of this character were collected by the 
Director of the Mint, whose office is authority for all of the 
figures in this table. It will be noted that the quantity of 
gold and the total money in the United States have grown much 
more rapidly than in any other country, and that the growth 
from 1896 to 1906 has been very strongly marked with a gain 
far in excess of that of any other country in the list. Attention 
is also called to the fact that the total stock of gold in the 13 
countries named, as shown by the final line of the table, has 
grown much more rapidly than that of either of the other 
classes of money named. 

In this connection the table showing the world's gold and sil- 
ver production from 1493 to 1907 will prove interesting. The 
table in question will be readily found by reference to the index. 

By an examination of that table it will be seen that the 
world's gold production since 1873 has aggregated as^ much 
as in the entire period from 1492 to 1873. An analysis of 
that table discloses the fact that the value of gold produced 
in the EWorld from 1492 to 1S73 was 6,120 million dollars, 
coining value, and that the production from the beginning of 1873 
to the beginning of 1908 was 6,368 millions. Statisticians esti- 
mate that the quantity of gold in the world is now double that 
of 1875, while the quantity produced since 1896 has been over 
three billion dollars, or one-third as much as that produced in 
the 400 years prior to 1896. 



80 



TEE MONEY PANIC OF 1907. 



20 



S4 » 



:ggg?; 

> ooo o < 



!88888g 



OOOOOOCOOOOoo 
<N O to I- t^ f— i— i v — i in 05 m oo 

O IM C5 H H -.. 00 io m W W (O H 
ONOIOOMHHIOH 



888888888888 



o o < 

V- 



■ O © Q < 

:8S8S 



&88&8833SSS8: 

IftOOMNHCOHtOCOOHri 



aHOTlOQ0MN«l-*lfl 
CO M M O N H CO cj 



88S8i«88S8i«8: 

00 00 iN H'OtOMMCO'ONI 

O © oj r-T o ©"in I 



I CM IN (2J 



lO <N lO tH ► 



lis 



§888888888888 

OH(MOONOIOS©IO^OCO 



'OOO©' 

:883S: 



8888888 



©oiraoooi"Tir>ici 

-niO'jiaHoOMHi 



© o © o © < 
©o© ©o< 
©©©©©< 



SooooopS9Se°® 
©©©©©©©©ooo© 

WCOHNOINIXOMOHNH 

go © rn ©"t^r-T-* in in ©"© r~"eo 

aHHHNMNieOH 



§©©©©©©©00000 
888888888888 

8*8"8*88*8"88S8&3s" 

lOI>-C^00(N'*©^HI^O^*O© 
mT^h CONXION ©CO t- lO -# (N 
CO rH -* <N 



SOOlDOOOOi 
© © CO © OOO < 

HOOlMSDOOMi 



'COMint-Oi 



888888888888: 

MNiUCiS^lOHCSTllOfflO' 



8888: 



888 

-ch © lO 



OQCSiOlONlOQ^HN 
mO-+(NNHC0lS 



C5 +J 
4-> SS 

So 



a 3 S >>r n „a +3 -S S -a & 

c3 tJ cor3 =?1j 02 wj a o n 
mOPSSw^-Jj^QoDlzi 



■ 



PROSPERITY. 



The periods of protection in the United States have been the 
periods of prosperity. The periods of prosperity have been those 
of protection. In the first half of the little more than a cen- 
tury of our existence under the Constitution protection and low 
tariff alternated at comparatively frequent intervals, in the 
second half protection has-been the rule, low tariff the exception. 
In the 48 years from I860 to 1908 there have been 45 years of 
protection and 45 years of prosperity, 3 years of low tariff and 3 
years of adversity. To be sure, there were during the long- per- 
iod of protection certain financial disturbances, due to inci- 
dents and causes which had no relation to, and were not affected 
by, the sj^stem of raising of revenues, but these were exceptions 
which proved the rule of general prosperity as an accompani- 
ment of protection. 

Measuring from 1812, the date of the first protective tariff, 
to 1861, the beginning of what may be termed the permanent 
period of protection, there were many experiments with free 
trade and protection. "During that long period," said the late 
James G. Blaine, in his celebrated reply to William E. Glad- 
stone published in the North American Review, in January, 1*90, 
"free trade tariffs were thrice followed by industrial stagnation, 
by financial embarrassments, by distress among all classes de- 
pendent for subsistence upon their own labor. Thrice were 
these burdens removed by the enactment of a protective tariff. 
Thrice the protective tariff promptly led to industrial activity, 
to financial ease, to prosperity among the people ; and this happy 
condition lasted in each case until illegitimate, prolific com- 
binations precipitated another era of free trade. * * * As 
an offset to the charge that free trade tariffs have always ended 
in panics and long £>eriods of financial distress, the advocates 
of free trade point to the fact that a financial panic of great 
severity fell upon the country in 1873 when the protective tariff 
of 1861 was in full force. The panic of 1873 was widely different 
in its true origin from those which I have been exposing. The 
Civil War had sacrificed on both sides a vast amount of prop- 
erty, a half million men had been killed, and a million more dis- 
abled; the public debt that must be funded reached nearly 
3,000 millions of dollars ; * * * two great calamities in the 
years immediately preceding had caused the expenditure .of 
more than two hundred millions of dollars suddenly withdrawn 
from the ordinary channels of commerce ; the rapid and exten- 
sive rebuilding in Chicago and Boston after the destructive 
fires of 1871 and 1872 had a closer connection with the panic 
of 1873 than is commonly thought. Still further, the six years 
of depression from 1873 to 1879 involved individual suffering 
rather than general distress. The country as a whole never ad- 
vanced in wealth more rapidly than during that period. * * * 
The business distress was relieved and prosperity restored under 
protection, whereas the ruinous effects of panic under free trade 
have never been restored except under protection." 

This masterly analysis by Mr. Blaine of the relation of pro- 
tective tariffs to prosperity and of great financial depressions in 
their relation to low tariffs has been fully justified by the events 
since it was written. The long period of depression which fol- 
lowed the return to low tariff immediately succeeding Mr. 
Blaine's defeat for the presidency continued during that entire 
period of low tariff and until relief was obtained by a return to 
protection. Following the reestablishment of protection in 1897 
came an immediate restoration of prosperity, which continued 
steadily until the great disturbances in world finances resulting 
from the Boer and Russo-Japanese wars, and the local disturb- 
ances resulting from the great losses consequent upon the 
Baltimore and San Francisco disasters, which paralleled the 
Chicago and Boston disasters --'' 1871 and 1872, referred to by 
u 81 



82 PROSPERITY. 

Mr. Blaine as closely connected with the panic of 1873, and 
fully justifying his statement that financial depressions under 
protection are due to momentary causes and are but temporary 
in duration. 

That the panic of 1907 was due to the great causes above re- 
ferred to and to the lack of sufficient currency to finance the 
great undertakings consequent upon the tremendous prosperity 
which had come to the country under the decade of protection 
is now generally conceded, as will be seen from the quotations 
which follow from distinguished writers upon, and students of 
this subject. That it was merely a financial panic, temporary in 
its existence and not a great industrial depression reducing em- 
ployment, wages, and prices of the products of labor, such as 
that accompanying the Wilson low tariff, will be equally apparent 
by a comparison of conditions in the summer, of 1908, ten months 
after the panic of 1907, with those of the summer of 1896, after 
three years of low tariff and accompanying industrial, as well 
as financial depression. The public soup houses, the Coxey ar- 
mies, the thousands compelled to sacrifice self respect and ask 
and accept charity and the millions unsuccessfully seeking em- 
ployment, which characterized the industrial panic accompanying 
the low tariff period, 1894-7, contrast strongly with conditions 
to-day. 

Business Improvements in 1908. 

That business conditions have already greatly improved and 
that the financial disturbance of eight months ago is not to re- 
sult in general business depression is now generally conceded. 

The New York Journal of Commerce (Democratic) of June 
1, 1908, announced the resumption of work on full time in large 
numbers of the New England cotton and woolen mills. The 
same issue reports from Paducah, Ky., the big hosiery mills of 
that city running day and night in the hope of catching up with 
orders. 

The Philadelphia Ledger of June 2d reports the Coplin Cement 
Manufacturing Company as working day and night with its 
entire force, while large numbers of other industries were re- 
ported as increasing their force of employees and working on 
full time. 

Dispatches from St. Louis published on June 1st, state that 
17,000 names were on June 1st added to pay rolls in St. Louis 
and vicinity, and that $5,000,000 worth of goods had been sent 
from the St. Louis houses to manufacturers within a fortnight. 
The New York Evening Post (Democratic) of May 23d, com- 
menting upon the improvement, says : "It is only fair to remem- 
ber that the country has to-day in its sound currency and pros- 
perous interior two factors making for recovery which did not 
exist in 1874 ;" and on June 1st publishes dispatches from many 
places, especially the New England cotton and woolen mills, 
announcing a return to full time. 

The Washington Post (Democratic) of June 2d says : "June 
begins the real summer season with many signs of returning 
prosperity. Plenti fulness of money and its cheapness have en- 
couraged promoters of industrial enterprises and railroad buil- 
ders to renew their plans of expansion. Some of the best in- 
formed railroad men foresee business that will tax the capacity 
of their equipment. Merchants are beginning to order for a 
busy fall trade. The country "is all right." 

E. G. Dun & Co. say in their Review that their figures of com- 
mercial failures for the month of May, 1908, present the most 
encouraging monthly statement as to the amount of defaulted 
indebtedness since July of last year and its total of 13% mil- 
lions compares favorably with 20 1/3 millions in the best pre- 
ceding month of this year. The New York Herald of June 1st 
says : "All the factors of production are with us in full blast, and 
with easy money and good crop prospects, to which the element 
of confidence is now added by the enactment of the currency 
law, the outlook is bright indeed for the highest measure of 
prosperity." 

The New York Journal (Democratic) of June 2d says: "The 
country is waking up. Mills and factories that have been closed 
for months are again humming and whirring with action. Trade 



PROSPERITY. 83 

is improving. New York merchants are reinstating employees 
that they were forced to dispense with last fall because of the 
flurry in Wall street. In Chicago commercial men are pre- 
paring for a prosperous season. In the great manufacturing 
centers of the East fears have fled from owners of plants and 
many chimneys that had long grown cold are now sending up 
their former volumes of smoke. There is money in the banks 
and the specter of distress is dimmer." 

The New York Herald of July 26, says : From all over the 
land come the good tidings that an unmistakable and abundant 
wave of prosperity is sweeping along. To the Herald come dis- 
patches from the great centers which prove beyond doubt 
that "good times" are here — and here apparently, to stay. Mills 
are running full blast, crops are bumper everywhere, the rail- 
roads are taking on men, and the entire nation, with one accord, 
gives vent to the expression that prosperous seasons are at hand. 
In the uplift of general industry from depression, following 
upon satisfactory harvests, no one can overlook the tremendous 
force of abundant and cheap -money. While the vast accumu- 
lations in the banks of the country are in themselves the evi- 
dences and results of lessened activities of commercial life. 
the great accumulations of surplus funds gathered in the financial 
reservoirs provide the quickening of industry when the proi^er 
period for recuperation has run its conr^. 

How vast a sum of reserve rnone}' has accumulated in the 
country in recent months can only be approximated. But in 
the national banks alone, under the call of thc# Comptroller of 
the Currency for their condition on May 14. there was no less 
than $861,326,450 of specie and legal tenders or reserve money. 
Of this sum $318,000,000 was in the vaults of national banks 
in New York City. The Comptroller of the Currency has just 
issued a call for the condition of the national banks as of July 
15. iThe figures on this are not yet available, but the general 
impression is that, despite gold exports during the interval, the 
showing "legal reserve money" will have been augmented. 

The total gold circulation in the United States, according 
to recent estimates, amounted to the huge total sum of $1,445,- 
000,000, of which 36 per cent was held in the national banks of 
the United States and nearly 16 per cent in the banks of New 
York City, which is the central reservoir of the financial system. 
As already stated on May 14, the national banks of the country 
held $861,326,450, which was an increase of $73,000,000, as com- 
pared with the preceding call by the Comptroller of the Cur- 
rency, that of February 14, and no less than $171,000,000 more 
than was held by the banks of the national association a year 
ago in May. 

National Bank Conditions, May 14. 1908. 

The latest report of the Comptroller of the Currency on the 
operations of the National banks of the country shows that their 
condition had nearly returned to that of the corresponding date 
in 1907, a period of high tide of prosperity, and was in marked 
contrast with conditions in March, 1897, the month of the inau- 
guration of William McKinley, and the approximate end of the 
Wilson low 4ariff period. The capital stock paid in of the 
National banks of the country on Ma}' 14, 1908, was 912 million 
dollars ; on Ma}' 20, 1907, one year earlier, 884 millions, and on 
March 9, 1897, was but 642 million dollars, showing an improved 
condition as to capital stock when compared with that of one 
year ago. and an increase of nearly 50 per cent when compared 
that of the corresponding date of 1897. The surplus fund on 
May 14, 1908, was 555 million dollars, against 535 millions on 
May 20, 1907, and but 247 millions on March 9, 1897. The un- 
divided profits, less expenses and taxes paid, were on May 14, 
1908, 203 million dollars, against 1S6 millions May 20. 1907,' and 
but 86i^ millions on March 9, 1897. The individual deposits on 
May 14, 1908, were 4,313 million dollars, against 4,323 millions 
on May 20, 1907, and but 1,000 millions on March 9. 1S97. the in- 
dividual deposits on May 14, 1908, being thus practically as much 
as one year ago. and over 2y 2 times as much as in 1S97. The 
loans and discounts, which are a measure of industrial activity. 



84 



PROSPERITY. 



were on May 14, 1908, 4,528 million dollars, against 4,631 mil- 
lions on May 20, 1907, and but 1,886 millions on March 9, 1897, 
being thus but little below the conditions of that* high water 
mark of prosperity one year ago, and more than 214 times as 
much as in March, 1897. 



Money in Circulation, July 1, 1908. 

The money in circulation in the United States on July 1, 
1908, was $3,045,257,289, against $2,772,956,455 on July 1, .1907. 
the year of high-water mark of prosperity, against $1,506,434,966 
in 1896, the year of low-water mark of Democratic adversity, and 
the year in which William Jennings Bryan was telling us that 
prosperity and sufficient money to produce prosperity could only 
be had by the free and unlimited coinage of silver. The per 
capita circulation July 1, 1908, was $34.81, against $32.22 on 
July 1, 1907, and $21.41 on July 1, 1897, the per capita of money 
in circulation on July 1, 1908, being thus 8 per cent more than in 
1907 and 60 per cent more than in July, 1896, the low-record year 
of the Wilson tariff period. One interesting feature of this tre- 
mendous increase in the amount of money in circulation in the 
United States in 1908 as compared with 1896, when we were told 
that increased currency could only be obtained bj' the free and 
unlimited coinage of silver, is the fact that the gold and gold 
certificates in circulation (the latter being, of course, the equiva 
lent of gold, since they represent gold deposited in the Treasur 
aggregated on July 1, 1908, $1,403,017,937, against but $497,1 
183 on July 1, 1896, or nearly three times as much gold in 
dilation in 1908 as in 1896. 



Pi-ices of Farm Products, 190S. 

Another evidence that the financial disturbance of 1907 has 
not seriously affected the masses or their purchasing power and 
has not brought to the great agricultural population the terrible 
depression whioh characterized the low tariff period is found 
in a comparison of prices of farm and other products prevailing 
in the .markets to-day with those of 1896. A little table below 
compares prices of a few representative articles in the first week 
of June, 1908, with those ruling in the first week of June, 1896. 
It will be seen that the price of wheat in New York, which in 
the first week of June, 1896, was 69% cents per bushel, was $1 
per bushel in June, 1908; corn advanced from 33% cents per 
bushel in June, 1896, to 78 cents per bushel in June, 1908 ; oats, 
from 22% cents per bushel in June, 1896, to 53y 2 cents per bushel 
in 1908; lard, from 4.4 cents per pound to 8*4 cents; mess pork, 
from $8 per barrel to $14.50 ; wool, Ohio XX, from 17 cents per 
pound to 30 cents; and cotton, from 734 cents per pound in 
June, 1896, to 11.4 cents per pound in June, 1908. 



Wholesale prices at New York of representative articles of farm 
production, 1896 and 1908. 





Articles. 




First week In June— 




1896. 


1908. 






per bushel— 


Dollars. 

0.6934 

.3334 

.223/4 

.044 
8.00 
.17 
.0734 


Dollars. 
1.00 






per bushel— 


.78 


Oats 




per bushel— 


.53V 2 






_ per pound— 


.085 






_#___ per barrel— 


14. i 50 






per pound— 


*.30 


Cotton 




per pound.. 


.114 



Evidences of Industrial Activity. 

One further evidence of the slight effect upon our industries 
of the financial panic of 1907 when compared with the industrial 
panic of 1894, 1895 and 1896, which followed the enactment of 
the Wilson law, is found by a comparison of the imports of 
manufacturers' raw materials at 'the present time with those 



PROSPERITY— 1897-1907. 85 

of the low tariff period, and also by a comparison of the manu- 
factures exported at the present time with those of the low 
tariff period. The imports of raw material for use in manufac- 
turing- in the seven months from October, 1907, to and including 
April, 1908, the full period of the financial panic, exceeded in 
value those of any full year of the operation of the Wilson loic 
tariff act, whose framers prided themselves on the fact that 
their tariff law r offered free raw materials to the manufacturer^ 
of the United States. The importation of raw material during 
the entire period of the Wilson law a vc raged 16 million dollars 
per month; during the seven months"' depression under the Ding- 
ley law, from October, 1, 1907, to May 1, 1908, the importation 
of raw material for use in manufacturing averaged 29 million 
dollars per month. The exports of manufactures during the 
three years' operation of the Wilson tariff law aggregated 774 
million dollars, or an average of 21% million dollars per month. 
The exports of manufactures from July 1, 1907, to May 1, 1908, 
including the full period of the depression under the Dingley 
law. aggregated 637 million dollars, or an average of 63.7 mil- 
lions per month. Thus the monthly average of exportations of 
manufactures during the ten months ending with April, 1908, 
has been three times as much in value as the monthly average 
during the entire period of the Wilson law. It may safely be 
asserted that the value of manufactures exported in the fiscal 
year 190S icill be as great as that for the entire three years under 
the M'ilson law, this estimate for 1908 being based upon the 11 
months' figures already received by the Bureau of Statistics. 

All Late Returns Favorable. 

Necessarily the opportunities for a statistical comparison of 
1908 conditions with those of earlier years are few, since statis- 
tical statements in most cases apply to full years, either fiscal 
or calendar, and none of these at the present moment are avail- 
able for the year 1908. In all of the monthly or briefer periodic 
statements available the latest figures for 1908 have been pre- 
sented, and the instantaneous picture of conditions which they 
present is, as seen by the above, extremely favorable. It is pos- 
sible, however, to compare conditions at the close of 1907 (in 
some cases the calendar, and in other cases the fiscal year) with 
those of earlier dates and especially to compare conditions of 
1907, after a decade of_ Dingley operation, with those of 1897. 
after three years' experience with low tariff and four years ex- 
perience w T ith Democratic rule. The statements and tables which 
follow compare conditions in 1907 with those of 1897, the year 
of McKinley's inauguration and the enactment of the Dingley 
law% also in other cases with those of 1906, the last full year 
of Democratic and low tariff rule. 



COMPARISON OF CONDITIONS IN U)07 WITH THOSE OF 1897. 

Financial, Commercial and Industrial Conditions in the 
United States in 1S97 and at Latest Available Date. 

Value of all farm products, estimated b}- the Department of 
Agriculture: in 1897, 4,250 million dollars; in 1907, 7,500 mil- 
lions. 

Value of farm animals: on January 1, 1897, $1,655,415,000; on 
January 1, 1908, $4,331,230,000. 

Value of horses: 1897, $452,650,000; in 1908, $1,867,530,000. 

Value of mules: 1897, $92,302,000; in 1908. $416,939,000. 

Value of cattle: 1897, $877,169,414; in 1908, $1,495,995,000. 

Value of sheep: 1897, $67.02 1.000 ; in 1908. $211,736,000. 

Value of swine: 1897, $166,273,000: in 1908. $3:59.030,000. 

Farm value of sheep per head : 1897. $2.46 ; in 1907, $3»S8. 

Value of wool product: 1897, 30 million dollars; in 1907, 78 
millions. 

Farm value of crops: 1897, 501 million dollars; in 1907. 
I 1,337 millions. 

Farm value of wheat crop: 1897, 428 million dollars; in 1907. 
554 millions. 



86 PROSPERITY— 1891-1007. 

Hay crop of the United States: 1897, 401 million dollars; in 

1907, 744 millions. 

Potato crop of the United States: 1897, 90 million dollars; 
in 1907, 184 millions. 

Beet sugar product of the United States: 1897. 84 million 
pounds; in 1907, 967 millions, or eleven times as much in 1907 
as in 1897, and the beet sugar production in 1907 was twice as 
great as that of the cane sugar production of the United States 
for the same year. 

Farm value of corn per bushel : in 1897, 26.3 cents ; in 1907, 
51.6 cents. 

Farm value of wheat per bushel: in 1897, 80.8 cents; in 1907, 
87.4 cents. 

Value of cotton crop: 1897, 288 million dollars; in 1907, 683 
millions. (Estimate of New Orleans Cotton Exchange.) 

Price of middling cotton per pound in the New York market : 
1897, 7 cents; in 1907, 12.1 cents. 

Price of medium Ohio fleece w«ol per pound: January, 1897, 
21 cents; January, 1907, 39 cents. 

Average price of corn in the New York market : in January, 
1897, 32 cents per pound; in January, 1907, 64 cents per pound. 

Pig iron production in 1897, 9,652,000 tons; in 1907, 25,781,000 
tons. 

Coal production: 1897, 178,776,000 tons; in 1907, 429 million 
tons. 

Tin plates manufactured: 1897, 574,779,000 pounds; in 1906. 
1.294,000000 pounds. 

American cotton manufactured bv American mills: in 1897, 
2,792,000 bales ; in 1907, 5.005.000 bales. 

Cotton imported for use in manfacturing in 1897, 51,899,000 
pounds; in 1907, 104,792,000 pounds. 

Wool imported for use in manufacturing: in 1897, 350,852.000 
pounds; in 1907, 203,848,000 pounds, showing the contrast under 
protection and free trade. 

Paw silk imported for use in manufacturing : in 1897, 7,993,000 
pounds; in 1907, 18,744,000 pounds. 

Crude rubber imported for use in manufacturing: in 1897, 
35,574,000 pounds; in 1907, 76,964,000 pounds. 

Pig tin imported for use in manufacturing tin plates: in 1897. 
6^2 million dollars ; in 1907, 38 million dollars. 

Value of all mineral products : in 1897, $647,000,000 ; in 1906. 
$1,903,000,000. 

Total domestic exports : in 1897, 1,032 million dollars ; in 1907, 
1,854 millions. 

Exports of manufactures: 1897, 311 million dollars; in 1907, 
740 millions. 

Share which manufactures form of the exports : 1897, 30 per 
cent ; 1907, 40 per cent. 

Imports: 1897, $764,730,000; in 1907, $1,434,421,000. 

Imports of raw material for use in manufacturing: 1897, 
$196,159,000; in 1907, $477,027,000. . 

Imports free of duty: 1897, 382 million dollars; in 1907, 644 
millions. 

Imports dutiable: 1897, 383 million dollars; in 1907, 790 mil- 
lions. 

Excess of exports over imports: 1897, $286,263,144; in 1907, 
$446,429,653, and the excess of exports over imports since the 
Dingley Act went into effect, over 5y 2 billion dollars. \ 

Money in circulation: July 1, 1897, 1,640 million dollars; June 
1, 1908, 3,036 millions. 

Gold and gold certificates in circulation : July 1, 1897, 555 mil- 
lion dollars ;' June 1, 1908, 1,402 million dollars." • 

Per capita money in circulation : July 1, 1897, $22.87 ; June 1, 

1908, $34.75. 

Interest on public debt: July 1, 1897, $34,387,000; June 1, 
1908, $21,258,000. 

Per capita interest charged: July 1, 1897, 48 cents; June 1, 
1908. 24 cents. 

Number of national banks in operation in United States : 
October 5. 1897, 3,610: February 14. 1908. 6.698. 

Capital stock of national banks in operation : October 5, 1897, 
$631,500,000; February 14, 1908, $905,550,000. 






PROSPERITY. 87 

Loans and discounts of national banks : October 5, 1897, 2,067 
million dollars; February 14, 1908, 4,422 million dollars. 

Deposits in all banks in the United States : 1897, 5,095 million 
dollars; 1907, 13,100 millions. 

Deposits in savings banks : 1897, 1,983 million dollars ; 1907, 
3,495 millions. 

Number of depositors in saving's banks: 1897, 5,201,132; 1907 
8,588,811. 

Bank clearings in the United States : 1897, 54 billion dollars ; 
1907, 155 billions. 

Wealth. (There are no figures for 1897 or 1907.) Census 
estimate for 1900 is 88,517 million dollars, and for 1904, 107,104 
millions. 

Industrial insurance in force: 1897, 996 million dollars; in 
1906, 2,454 millions. 

Students in colleges, universities, and schools of technology: 
in 1897, 86,000; in 1906, 129,000. 

Telegraph messages sent: 1897, 71,780,000; in 1907, 98,480,000. 

Railways in operation in the United States : 1897, 184,591 
miles; 1907, 228,509 miles, an increase of 43,918 miles. 

Passengers carried: 1897, 504 millions; 1906, 815 millions. 

Tons of freight carried: 1897, 788 millions; 1906, 1,610 mil- 
lions. 

Railways placed under receivership: 1897, 1,537 miles; 1907, 
317 miles. 

Railways sold under foreclosure : 1897, 6,675 miles ; 1907, 114 
miles. 

Electric railways in the United States : 1897, 13,765 miles ; 
1906, 36,212 miles. 

Average freight rates on wheat from St. Louis to Liverpool : 
1897, 20.33 cents per bushel ; in 1907, 15.87 cents per bushel. 

Tonnage of vessels owned on the ocean, frontage, lakes and 
western rivers of the United States: 1897, 4,769,000 tons; 1907, 
6,939 tons. 

Vessels built in the United States: 1897, 232,233 tons; 1907, 
471.332 tons. 

Tonnage of vessels from foreign countries entering the ports" 
of the United States : 1897, 23,760,000 tons ; 1907, 36.622,000 tons. 

Tonnage of ve'ssels passing through the Sault Ste. Marie 
Canal : 1897, 17,620,000 tons ; 1907, 44,088,000 tons. 

Telephone subscribers: 1897, 325,000; January 1, 1908, 3,035,- 
000. 

Number of railway employees: 1897, 823,476; 1906, 1,521.355. 

Wages paid by railways: 1897, 466 million dollars; 1906, 901 
millions. 

Expenditures for public schools in the United States : 1897, 
$187,682,000: 1906, $307,766,000. 

Immigrants arrived : 1897, 230,832 : 1907, 1,285,349. 

Original homestead entries in the United States : 1897, 4,452,- 
000 acres; 1907, 14,755,000 acres. 

Public lands sold for cash : 1897, 7,754,000 acres ; 1907, 20,867,- 
000 acres. 



Tlie present phenomenal prosperity lias been won under a 
tariff which was made to protect the#interests of the Ameri- 
can producer, business man, wage-worker, and farmer alike. 
—President Roosevelt at Minneapolis, April 4, 1903. 

The Rate law does not pro far enough. The practice under 
it has already disclosed the necessity for new amendments 
and will doubtless suggest more. Such is the true method 
— the empirical and tentative method — of securing proper 
remedies for a new evil. — Hon. Wm. H. Taft, at Columbus. 
Ohio. 

The hum of industry has drowned the voice of calamity 
and the voice of despair is no longer heard in the United 
States, and the orators without occupation here are now 
looking to the Philippines for comfort. As we opposed them 
when they were standing against industrial progress at 
home, we oppose them now as they are standing against na- 
tional duty in our island possession in the Pacific. — President 
McKinley. 

One vital, dominating fact confronts the Democratic 
party -which no oratory, which no eloquence, which no 
rhetoric enn obscure: BRYAN'S NOMINATION MEANS TAPt'S 
ELECTION.— New York World. 



88 PROSPERITY—MONET IN CIRCULATION. 

Money in Circulation in the United States, 1880 to 1908. 

This table shows the amount of money in circulation in 
the United States and the various classes thereof at decennial 
periods from 1800 to 1880, quinquennially from 1880 to 1890, 
and annually from 1890 to 1908. An especially important feat- 
ure is the decline in the amount of money in circulation and 
in per capita circulation in 1895 and 1896 and the rapid in- 
crease which has characterized more recent years. It will be 
seen that the total amount of money in circulation has doubled 
since 1896 and that the increase has occurred chiefly in gold, 
and in gold certificates for which an equivalent in gold is de- 
posited in the Treasury Department. The total circulation has 
doubled and the per capita circulation has increased more than 
50 per cent since 1896, when Mr. Bryan and his followers were 
telling- us that free coinage of silver was necessary to a growth 
of our currency. 



SQ 



^3 


< 










to 


■w 






<© 


+-> 






+J 


DQ 



2, £ k! 

032, 



2&* 

H o © 

o 



53 £? 

— m o 

O O <p 

111 Cv Si 



°2 

o fl 






2 5 

C53 



irM^©©©OC!COI.^< 



INNNNNNNNWNIMNNlMINl 



lO)NNN©NN 



CO N "* W CO LO N ' 



iHONONIMN' 

» t- ua o © © -n oo 

lOHMMOHM' 



oominwiMON 



lflOQOXI>MNN 



..N3)O^OOO'+MOWN-tl®HQ0WN'* 
(M->K-1<tOir, (OtOlOtDCOffiOi-INCOiniONNO 






■ O O O) ffl W ai 
©©©©©© 



f OONNr HNOotOMNMOW- 



iOlft<DMO-*001BOlOXOffiNMQ5 



HQ0HNOh-(DMHNH0r)ro(NHi0O«O00*O 

IMNOM-«H»-*l' , IMlff00MrtOHOM'«W(SM 

lOHOaoipaNOHMQ^HcomNXMNHin 



UPH-CHHOOICOX'JIO 
IHMS ai -M © r—l l-S — 



OHHNffil 



lOOXHH' 



INWWHHi 



iffllBinNNOieiCftMOOOffif 

> ?5 rf rt £2 ?S °°, "* °2 ( 



INNNNCOMCOO? 



iXNI^NO-HONlffXWMNlOffiNNlCNOlCOO 

IMl0MN5C«O30!9NN-*-«O«!0NS»li0Cj 
l!0^tO~M3:'+0 0; 0D!DOXin-*t-lfl^!C(MO00 

i <n"itT oo co tvTcTcrr 05 aocT-* cTrHrH 10 rax ©"©"© o"a 
i o a h x o id »a x u >a co i- i © -+ 10 <m -f i— oo 

lfflW«0'ML"OLOONSii , maOWNI t< © Od rH 

i ■* tC^a -""ma c; co co~ -a o -* co co © -h -* co 53 iocs O 

1 01 c-l K " - £ H -J e -M -f X O H CO X » « M M -t •<)( 

1 co co re co :- co co 01 im M c-i w co co co co co m w co co co 



t " CD Ol CO X I 



. ! J-~ IT CD i-H C5 S'lO <M £- 

co id © i_a ■ a © © © 1^ © cn © 



ia co r- co co ■ 



lt~ l^ © CO CO : 



ONOMXatO"#H-*HC^ 

coipaoON^«©»N(«e 



© cca -a ac oc .a oc ca. ca ca. oc cca © ca ©■ © © © © 
i.a co — X' — co — 1 or x rJHL-c^--f-*c;o 
x c co a x oc r^ co laaccooinONXCMM 



NXOOOMCCHC-l CO © I~ © CO O-l < 



- co 1— 1 01 cd x ai 1^ i> 

ifM^+©CD-*-t<COC 



LPIMONCONlTinCi 



10 o a c a a n o cd •+ n n 

-<- —. - — ' CO CO — 1 ~ > •- ~ x ■ > " CO -*> h- ' 
M M M CO m it CD©COCDCOCMCOU-ua: 



co- 0-1 1a 1 
I © CO CO' 



co -* i<- ir © 1 



01 a a ip a a la co h a a i- o d x < - 
01 x 1—1 -■- — ' ca. 1 - co ai 1a co -*• 1- - -- 

© t- CO © i— CO © CO CO ID ITT ID © 

00 ai © 1^ © ai rf 01 ai . 



-* ~i c" co © 



(M 01 a h H ^ 01 



O -f ffl m -+ o 
oawo - - 



C- CD "J 



co © ai ia © 

CO ID 1^ © 00 
""« © ■** 1^ CM 



-0 I 



■ co © ~ ac ca 



irr. 00 00 © X ia co i~ 10 — ceo 00 ca © ■ 
qoich ca — i--: ccxiccooo: 
co o (M co ic m 0. co ic o t- x n ( 

ita T-T-tTtCoO X ip © -* r- t- C5 © ac ai i~ 1 
oi -t< 1 - © © © oc 1 ~ ia .— ia 1 ai co — - 

ai co. co -* "* -a •*• -t ■ -♦ i-a © © © © © co ; 



©©©©©©©© 

© — ai co -Mia cd 1- 
x x X X 



_ x © © © © © c 

GOOOOOOOCOOCOOCOC 



>— — vi .. ■■" CD I \~ X 

..,:©©©©©©©©© 
XXXMEGC. OO ©©©© 






c3 m 



£c 



o 

^5 C3 



.2§ 



PROSPERITY— B At) K DEPOSITS. 



89 



Bank Deposits 



BANK DEPOSITS, 
in the United States, 1875 to 1907. 



This table, taken from the official reports of the Comptroller 
of the Currency, shows the amount of money deposited in all 
classes of banks and the grand total of bank deposits in the 
United States in each year from 1875 to 1907. It will be noted 
that the total gain in total deposits in the four Democratic 
years, from the end of 1892 to the end of 1896, was but 280 million 
dollars, an annual average of 70 millions during that period, 
while the increase since the beginning of 1897 has averaged 700 
million dollars per annum, or more than ten times as much an- 
nually as the annual average during the four years of Democracy 
and low tariff. 

Deposits in banks of all classes in the United States, 1815 to 1907. 



Deposits in— 



1375. 
1876. 
1877. 
1878. 
1879. 
1880. 
1881. 
1882, 
1883. 
1884. 
1885 
1S86. 
1887. 
1888. 
1389. 
1890, 
1391. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901- 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 



National 
banks. 



Dollars 

686,478,630 

641,432,836 

636,267,529 

621,632,160 

648,934,141 

833,701,034 

1,031,731,043 

1,066,707,249 

1,043,137,763 

979,020,350 

1,106,376,517 

1,146,246,911 

1,285,076,979 

1,292,342,471 

1,442,137,979 

1,521,745,665 

1,535,058,569 

1,753,339,680 

1,556,761,230 

1,677,801,201 

1,736,022,007 

1,668,413,508 

1,770,480,563 

2,023,357,160 

2,522,157,509 

2,458,092,758 

2,941,837,429 

3,098,875,772 

3,200,993,509 

3,312,439,842 

3,783,6.58,494 

4,055,873,637 

4,322,880,141 



Savings 
banks. 



Dollars. 

924,037,304 

941,350,255 

866,218,306 

879,897,425 

802,490,298 

819,106,973 

891,961,142 

966,797,031 

024,856, 

,073,294,955 

095,172,147 

141,530,578 

,235,247,371 

364,196,550 

444,391. 

550,023,956 

654,826,142 

758,329,618 

808,800,262 

777,833,242 

844,357,798 

935,466,46? 

983,413,561 

028,208,409 

182, 006, 42 J 

389,719,95,' 

516,843,293 

650,104,486 

815,483,106 

918,775,329 

093,077,357 

299,544,601 

495,410,087 



State 
banks. 



Dollars. 
165,S71,439 
157,928,658 
226,654,538 
142,764,491 
166,958,229 
208,751,611 
261,362,303 
281,775,496 
334,995,702 
325,365,669 
344,307,916 
342,882,767 
447,995,653 
410,047,842 
507,084,481 
553.054,584 
556,637,012 
648,513,809 
706,865,643 
658,107,494 
712,410,423 
695,659,914 
723,640,795 
,912,365,406 
,164,020.972 
,266,735,282 
,610,-502,246 
,698,185,28711 
,814,570,163)1 
,073,218,049 1 
.365,209,630 1 
,741,464,129 2 
,068,649,860 2 



Loan and 

trust 
companies. 



Dollars. 

85,025,371 
87,817,992 
84,215,849 
73,136,578 
75,873,219 
90,0O8,0OS 
111,670,329 
144,841,596 
165,378,515 
188,745,922 
188,417,293 
214,063,415 
240,190,711 
257,878,114 
299,612,899 
336,456,492 
355,330,080 
411,659,996 
486,244,079 
471,298,816 
546,652,657 
586,468,156 
566,922,205 
662,138,397 
835,499,064 
,028,232,407 
271,081,174 
,525,887,493 
,589,398,796 

«0, 322, 325 
0,856,737 
008,937,790 
,061,623,035 



Private 
banks. 



Total 
deposits. 



Dollars. 
321,100,000 
322,100,000 
243,840,000 
183,830,000 
139,920,000 
182,667,235 
241,845,554 
295,622,160 
(h) 
(h) 
(h) 
(h) 
96,580,457 
94,878,842 
83,183,718 
99,721,667 
94,959,727 
93,091,148 
68,552,696 
66,074,-549 
81,824,932 
59,116,378 
50,278,243 
62,085,084 
64,974,392 
96,206,049 
118,621,903 
131,669,948 
133,247,990 
95,791,454 
127,937,098 11 
109, 947, 509i 12 



Dollars. 

,182,512,744 
,150,629,791 
,057,196,222 
,901,260,654 
,834,175,887 
,134,234,861 
,538,570,371 
,755,743,582 



305,091,171 
419,343,819 
776,410,402 
061,002,364 
196,811,530 
664,934,251 
627,223,910 
651,115,302 
921,267,817 
945,124,424 
094,735,370 
688,164,450 
768,658,361 
238,986,450 
458,886,045 
104,722,986 
553, 693;. 594 
000,516,999 
350,739,316 
215,767,666 
099,635,348 



The Republican party was horn because of a principle, 
and it has lived and grown because of princinles too sound 
to be overthrown, too deep to be effaced.— Hon. James S. 
Sherman. 

In the great battle of 1896 the Republican party again 
stood for the maintenance of the integrity of the nation. 
The fight was against odds produced by a great industrial 
depression, and against the most sophistical arguments. The 
Republican party maintained a campaign of education 
among the wage-earners and the farmers, which ultimately 
led to the complete defeat of this second financial heresy 
■which has threatened the integrity of our business structure. 
—Hon. Wm. H. Taft, at Kansas City, Mo. 



There has never been a Republican Administration 
which has not carried us forward. There has not been a 
Democratic Administration since the advent of the Repub- 
lican party that has not carried us backward. The Demo- 
cratic party has never had the courage, even when it had 
the opportunity, to enact into law its own promises. The 
Republican party on the contrary has not only promised 
but has fulfilled its pledges and accomplished even more 
than it pledged. That is why it has the confidence of (he 
people, that is why it can again be intrusted with legis- 
lation and administration for another ter.ni. That is why 
it should be, and I believe will be, successful again tievt 
November. — Hon. James S. Sherman. 



90 



PROSPERITY— SAVINGS DEPOSITS. 



Number of savings banks in the United States, number of de- 
positors, amount of savings deposits, average amount due each 
depositor in the years 1820, 1825, 1830, 1835, 1840, and 1845 to 
1901, and average per capita in the United States in the years 

given. 

[Compiled in the office of the Comptroller of the Currency.] 



Year. 



1820_ 
1825- 
1830. 
1835. 
1840- 
1845- 
1846_ 
1817. 
1848- 
1849. 
1850- 
1851. 
1852. 
1853. 
1854. 
1855- 
185G_ 
1857- 
1858. 
1859. 



1861_ 
1862_ 
1853_ 
1861- 
1865_ 
1865- 
1367- 
1868- 
1869- 
1870. 
1871. 
1872- 
1873. 
1874- 
1S75_ 
1876- 
1877- 
1878. 
1879. 
1880- 
1881- 
1882- 
1883- 
1884- 
1885_ 
1886_ 
1887- 
1888- 
1889- 
1890_ 
1891- 
1892.. 
1893- 
1894- 
1895. 
1896_ 
1817_ 
1898- 
1800- 
1900_ 
1901_ 
1902. 
1903- 
1904. 
1905- 
1906- 
1907. 



Number 

of 

banks. 



52 
61 
70 
74 
76 
83 
90 
108 
128 
141 
159 
190 
215 
222 
231 
245 
259 
278 
285 
289 
293 
305 
317 
336 
371 
406 
476 
517 
577 
647 
669 
693 
771 
781 
675 
633 
639 
629 
629 
629 
630 
636 
616 
638 
681 
801 
819 
921 
1,011 
1.059 
1 030 
l'024 
1,017 
988 
980 
979 
987 
1,002 
1,0% 
1,0* 
1,078 
1,157 
1,237 
1,319 
1,415 



Number 
of depos- 
itors. 



8,635 

16,931 

38,035 

60,058 

78,701 

145,206 

158,709 

187,739 

199,764 

217,318 

251,354 

277,148 

308,863 

365,538 

396,173 

431,602 

487,986 

490,428 

538,840 

622,556 

693,870 

694,487. 

787,913 

887,096 

976,025 

980,844 

067,061 

188,202 

310,144 

466,681 

630,846 

902,047 

992,925 

2,185,832 

2,293,401 

2,359,864 

2,368,630 

2,395,314 

2,400,785 

2,288,707 

2.335,582 

2,528,719 

2,710,354 

2,876,438 

g ,015, 151 

3,071,495 

3,158,950 

3,418,013 

3,838,291 

4,021,523 

4,258,893 

4,533,217 

4,781,605 

4,830,599 

4,777.687 

4,875,519 

5,065,494 

5,201,132 

5,385,746 

5,687,818 

6,107 083 

6,358*:723 

6.666,672 

7,035,228 

7,305,443 

7,696,229 

8,027,192 

8,5S8,811 



Deposits. 



$1,138,576 

2,537,082 

6,973,304 

10,618,726 

14,051,520 

24,508,677 

27,374,325 

31,627,479 

33,087,488 

36,073,924 

43,431,130 

50,457,913 

59,467,453 

72,313,696 

77,823,906 

84,2:10,076 

95, 5 J8, 230 

98,512,988 

108,43S,287 

128,657,901 

149,277,504 

146,729,882 

169,431,540 

206,235,202 

236,280,401 

242,619,382 

282,155,794 

327,009,452 

392,781,813 

457,675,0.50 

549,874,358 

650,715,442 

735,046,805 

802,363,609 

864,556,902 

924,037,304 

941,350,255 

868,218,306 

879,897,425 

802,490,298 

819.108,973 

891,981,142 

966,797,081 

1,024,856.787 

1,073,291,955 

1,095,172,147 

1,141,530,578 

1,235,247,371 

1,364,198,550 

1,425,230,349 

1,524,814,506 

1,625,079,749 

1,712,769,026 

1,785,150,957 

1,747,931,280 

1,810,597,023 

1,907,156,277 

1,939,376,035 

2,085,631,298 

2,230,366,954 

2,449,547,885 

2,597,094,580 

2,750,177,290 

2,935,204,845 

3.060,178,611 

3,261,236,119 

3,482,137,198 

3.690,078,945 



eachde-^ t ^ e 
posltor. Jgfgf 



$131.86 
149.84 
183.03 
176.72 
178.54 
168.77 
172.48 
168. 48 4 
105.63 
165.99 
172.78 
182.06 
192.54 
197.82 
196.44 
195.29 
195.90 
200.87 
201.24 
206.66 
215.13 
211.27 
215.03 
232.48 
242.08 
247.35 
264.70 
283.63 
299.80 
312.04 
337.17 
342.13 
368.82 
367.07 
376.98 
391.56 
397.42 
361.63 
366.50 
353.72 
350.71 
352.73 
356.70 
356.29 
355.96 
356.56 
361.36 
361.39 
355.41 
354.40 
358.03 
358.04 
358.20 
369.55 
365.86 
371.36 
376.50 
372.88 
383.54 
392.13 
401.10 
408.30 
412.53 
417.21 
418.89 
423.74 
433.79 
429.64 



Anything that makes capital idle, or which reduces or 
destroys it, mast redace hoth wages and the opportunity 
to earn wages. It only rqnires the effects of a panic through 
which we are passing, or through which we passed in 
1S93 or 1873, to show how closely united in a common in- 
terest we all are in modern society. We are in the same 
boat, and financial and business storms wh J c * *£f ec »L £™f 
are certain to affect all others.— Hon. Wm. H. Taft, before 
the Cooper Union, New York City. 



PROSPERITY— SAYINGS DEPOSITS. 



91 



SAVING BVXK DEPOSITS. 

Deposits and Depositors in Savings Banlis in the Principal 
Ccantries of the World, compared with those of the United 
States. 

This table, which shows the number of depositors in savings 
banks in the principal countries of the world, and the average 
amount per capita, gives an opportunity to compare the pros- 
perity of American savings depositors with that of depositors 
in other counties. It 'will be noted that the total amount of 
deposit and the per capita deposit exceed in the United States 
those of any other country shown in the list, which includes 
all countries for which statistics of this character are available. 
The table is an official one prepared by the Bureau of Statistics 
for publication by the Comptroller of the Currency in his an- 
nual report for 1908. 

Depositors, amount of deposits and average deposit in all savings 
banks, and average deposit per inhabitant in the principal conn- 
tries of the world, according to latest available information. 

[Prom 1907 Report of the Comptroller of the Currency.] 



Countr: 



Austria 

Belgium (a) 

Denmark (b) 

France 

Germany 

Hungary (c) 

Italy (d) 

Netherlands 

Norway 

Russia (e) 

Finland 

Sweden 

United Kingdom- 
Australasia 

Canada (f) 

Cape Colony 

British India 

Japan 

United States (g) 
All other 

Total 



Number of 
depositors. 



,514. 

,311 
,323 
,131 
,291. 
,516. 
,51.3. 
649, 
790, 
,665. 

243. 
,911, 
,093, 
500 , 
209 , 
107, 
115, 
5 '.2, 
53S. 
630, 



570 
815 
011 
523 
217 
629 
678 
769 
307 
996 
525 
655 
783 
413 
563 
191 
758 
050 
811 
27S 



Deposits. 



$95,809,635 



$1,033 

151 

212 

898 

2,831 

370 

233 

91 

100 

533 

21 

175 

1,017! 

237! 

63 

12. 

45 

75. 

3,690 

306: 



,181,961 
,610,983 
,900,390 
,376,625 
,333,000 
,914,925 
,735,421 
,619,000 
,250,602 
,316,000 
,484,885 
,917,932 
,126,158 
,305,271 
,711,6.50 
,514,706 
,396,711 
,966,732 
,078.9 55 
,788,295 



$12,106,630,522 



Average 
deposit. 



$187.32 

65.59 

160.98 

71.03 

163.71 

239.81 

35.71 

55 . 55 

126.85 

91.13 

100.33 

90.60 

81.10 

158.16 

293.07 

116.7.5 

10.69 

6.05 

129.61 

111.46 



$126.36 



a. Data for the State-controlled Caisse Generate d'Epargne. Includes 
savings deposits witfi post-offices. In addition, there are four municipal 
and five private savings banks, which on December 31, 1904, had 42,279, 
and on December 31, 1905, 42,171 depositors, and deposits to the amount 
of $9,379,623 in 1904, and $9,575,248 in 1905. 

b. Includes all savings institutions. Number of depositors in savings 
banks proper, exclusive of branches of ordinary banks, was in 1905, 1,021,- 
697; in 1904, 996,615; deposits, $160,621,194 in 1904, and $166,677,241 
in 1905. 

c. Exclusive of owners of savings deposits in commercial banks and 
savings associations, who numbered in 1905, 499,238, and in 1904, 462,307, 
with deposits of $144,622,000 in 1904 and $162,948,000 in 1905. 

d. Exclusive of depositors in the so-called "societa ordinarie di credito" 
and "societa cooperative di credito," for which the number of depositors 
is not stated. The deposits at the end of 1903 amounted to $85,965,495. 

e. Preliminary data for all Government savings banks, as published in 
the Viestnik Finansov. Deposits are exclusive of securities held for depos- 
itors, the nominal value of which on December 31, 190$, was $115,431,000, 
and on December 31, 1906, $122,262,000. 

f. Exclusive of deposits and depositors in the special savings banks, 
amounting on June 30, 1906, to $27,399,194. The total deposits in all 
savings banks amounted thus to $89,309,816 in 1906, making the average 
deposit per inhabitant $13.87. These totals do not include the savings 
deposits in the chartered banks ("deposits payable after notice or on a fixed 
day"), which on December 31, 1906, were $398,765,182, and on Decem- 
ber 31, 1905, $338,411,275. 

g. Includes Illinois State banks having savings departments. 



Liberty and honor do not measnre all that the party 
has stood for and stands for today. There is another great 
underlying 1 policy which the Republican party adopted at 
its birth and has developed since as has none of the ^rcnt 
powers of Christendom. I refer to the Policy of Progress, 
which lias made onr country the greatest, onr nation the 
strongest, and onr people the wealthiest and happiest of 
all the peoples of the world.— Hon. James S. Sherman. 



92 



PROSPERITY— NATIONAL BANKS, 



53 E 



s 


— 


<a 


O 


g 


s-i 


00 


a 




o 


rO 


Q 


© 


u 




-G 


■y.) 




to 


<M 


to 


o 


p^; 


+a 








u 


to 


O 


o 




s 








CC 


x: 




+j 


•w 




to 


b 


o 


o 






S 


N 


IS 


1 — i 


tea 





O H © 
1ft t>i O 



T 1 0> 
M CO 



CO CO i—l CO OS 



O-flOlC 
-t< CM - CO 
CO CM © CO 



8lft 
05 



com coi- 



Ift ift co -t CO 



ooooo 



© Ift '< 

a> ift i 



as co m co © CM 



ICO<DOO(OHNOCOOON 

-^CO^CMlftlft-^CiOCO^fCM 

tHCMi-H i-Hr-t i-l CM iH 



©©©< 

8 CD o i 
©©. 



COlftO©lft-*CM©© 

CMlPOtO-*HWO 
COOONOCSWONN 



Sooo< 
© © © < 
coooo< 



:885 

©©< 



i-H OlftQOO i 



COCMi-HTj<OOaOCX3CMC5ift 



IOOOOOOCDOC 
• OOlftl^OCMOlftlft" 



> O Ift §> o "ft < 



© O © 1ft CM O ' 



) CO CM CO CM CO CO CO 



CO CO i— I -* CO Ift -* i— i ift . T~ Vj ift i'r CI I - LC ~ H t- CO 00 CD IO H CO 6 -t 
<MCMCOCMrHCMCOCMCOCMCM-*CO rtCOt-MNHN'<)l'* | lO't 



IHOMC-ISDHMCSO' 
I CM CM CO CO CM -K CO 



OQCMQOOOOOO 

Ouft COLftOOOOCOO 
NOIOHKOOOOO 

OOCOOllftOOOCOCAOO'MO-HCii 
NtD-fHtOHOMr- 

cocoiftincMcMifti^ii - 



COOiCM00"*i-<r^CMGi00r-CDCMC0CMCMCO< 



CO CO CO rH O <N r-l l 



'MOlMOlC-lOlOCOHNtoaoOOOt-" 
I CO i-l i-l N N N CO N O CO CI W « i-n ! 



IN©C»-*MMMi 



i CO CO 00 CO CO 



to t^. 1-- f- !•- l~- t^ 1^ r^ f~- F- CO CO 60 CO CO CO CO CO CO 00 © © 

cooocococooococooooooococococooocooocooococcoo 



ro^iooi^ooo© 



PROSPERITY— NATIONAL BANKS. 



93 



1 r-- © -f i— I ■* 00 






g 



© og to ^ OJ 



mssow 

/j l- © CO 
© CO ■* t-H 






©©©©©i~ ©©©©©©©©©© 



OiOOW-OrHOO: 



-* ir © © r- 



Ol O ?) L"J M lO H i— I i— I 



IMMOHNNOM00N 



O © < 

© © ( 
if> © i 



I" ~ ~ ' 



HO^ONfflom- 



~. ". 1 X © OT -f 



(M t-(M O© ■ 



o-i co -M eg rH r-i 



3a«NOa-(iM3)HNirii-ir-' 



© © © © © © O ' 

©©©©©©©. 
©©©©©©©: 



gggggggg 

©LO©IOCOLOIO© 



00 CO 30 © -" -M © 



lOiBO^OO-fOMOM: 
_ , J © -■- c i -- i - ~ i:c c: cc — < ro ■ 
<MCJ00M-+a-t3:LOHMOin- 

Wr-iinT)iM-*atoa 



hhinm co eg co og co 



cooo-*©ooco-+©co 



SlSaaSfiocooeoS 
j oc i/o oo x * £5 26 cS 25 © c. © 



© co © 

JC M X) 50 0C 00 00 



2- 



2 ® 
-IS « 

W .3. 



ao 

2S 






- - 


C3 


■M 


( , 


- <" 


S 


a 




$1 




09 


a 




4J 


o 


09 

■*-> 
Q 


«! 3 


fe 




H 






94 PROSPERITY— BUILDING ASSOCIATIONS— FAILURES. 



BUILDING ASSOCIATIONS. 

They Care for $728,000,000 of the People's Savings.— An In- 
crease of .$55,000,000 in 1907 Alone. 

[From Cincinnati Commercial Tribune, March 1, 1908.] 
The report of Secretary Cellarius, of the United States League 
of Building- Associations, now in session at New Orleans, shows 
that the building associations of the United States are caring 
for the enormous number of 728,000,000 dollars of the savers 
among the people of the United States — the home-builders and 
home-owners of the country. Secretary Cellarius thus tells of the 
remarkable increase in the holdings of the building associations 
during 1907 : 

The building and loan associations of the United States have increased 
approximately $55,000,000 in assets in 1907, so that they now care for 
$728,000,000 of the people's savings. The members of these associations 
are largely wage-earners. They have in the aggregate accumulated a vast 
sum, which has been mainly loaned to members for the purpose of securing 
their own homes. 

During the same year the membership increased over 100,000, 
with Pennsylvania having the largest increase in assets — $10.- 
000.000 — and Ohio next with an increase of $8,000,000. In only 
one State, California, was there a decrease in membership, 2,000 
falling from the rolls ; yet the assets of the associations in that 
State increased in the sum of of $200,000. Plainly the calamity 
howler ought to take to the woods in the face of the showing of 
the building associations of the United States. Deposits of $673,- 
000,000 in 1906 rising to deposits of $728,000,000 in 1907 are a 
most conclusive answer to the pessimists whose only delight is in 
the determination to see nothing but calamity and to hear noth- 
ing but its howls. The better part of the showing is in the fact 
that the depositor in a building association is a home-builder, 
adding immensely to the wealth of the country and raising the 
standard of citizenship. Ohio shows up well, magnificently well, 
in fact, considering the greater population of Pennsylvania, and 
1908 will push her further to the front. 






FAILURES. 

Commercial Failnres in the United States, 1880 to 1907. 

The table which follows, taken from Dun's Eeview, a non- 
partisan publication, shows the number of commercial failures 
and the amount of liabilities in each year from 1880 to 1907. 
These figures are for the calendar years — the year ending De- 
cember 31 — and those for 1907 therefore include most of the 
great failures which occurred during the recent financial troubles. 
It will be noted that the total liabilities in 1907 ($197,000,000) 
were but about one-half of those of 1893 ($346,000,000), when the 
population was but about three-fourths that of today, and much 
less than the a.innifal average during the four Democratic years, 
1893, 1894, 1895 and 1896, although the population of the 
United States was then less than 70.000,000 against the pre 
86.000,000. The liabilities of the failures of 1893 amounted to 
$346,779,839, when the entire population was about 66,349,000. or 
an average liability of $5.23 if applied to the entire population, 
in 1907 the liabilities were $197,385,22^ and the population 85,- 
817,293, or an average liability of $2.30 per capita in 1907, against 
$5.23 per capita in 1893. 



Principles are more enduring than men, more lasting 
than factions. — Hon. James S. Sherman. 

Instead of making a panic, the national policy of ending 
the lawlessnes of corporations in interstate commerce, and 
of taking - away their power of issuing, without supervision, 
stocks and bonds, will produce a change in their manage- 
ment and remove one fruitful cause for loss of public con- 
ndence.—Hon. Win. II. Taft, to Merchants and Manufacturers' 
AsHoniat ion, Boston, Mass, 



PROSPERITY. 



95 



Commercial failures and average of liabilities, 1880 to 190":. 



: 



[From Dun's Review, New York.] 



l otal for the Year. 



lendar Tear. 



N umber 
of failure* 



1880 

1881 

1882 

1883 

1884 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893* 

1894* 

1895* 

1896* 

1897 

189S 

1899 

1000 

1901 

1902 

1003 

1001 

1005 

1006 

1907 



Number of 


Per cl. 1 


business con- 


of fail- 


cerns. 


ures. 


746,823 


1 
0.63 


781,689 


.71 


822,256 


.82 : 


863,993 


1.06 | 


904,759 


1.21 ! 


919,990 


1.16 


969,841 


1.01 


994,281 


.90 


1,046,662 


1.02 I 


1.051,140 


1.04 ' 


1,110,590 


.98 I 


1,142,951 


1.07 


1,172,705 


.88 ! 


1,193 113 


1.28 


1,114,174 


1.25 i 


1,209.282 


1.09 


1,151,579 


1.31 ' 


1,058,521 


1.26 ! 


1,105,830 


1.10 


1,147,595 


.81 


b 1,174,300 


.92 ; 


1,219,242 


.90 ! 


1,253.172 


.93 '• 


1,281,481 


01 


1,320,172 


.92 


1,356,217 


.85 


1,391,587 


.77 


1,417,077 


.82 | 



Amount of 
liabilities. 



\ verage 
liabilities. 



$65,752,000 

81. 155 ,032 
101,517, 564 

172,874,172 
226,343,427 
124,220,321 
114,644,119 

167,560,944 
123,823,973 
148,781.337 
189,856,964 
189,868,638 
114,014,167 
346,779.833 
172,992.355 
173,193.060 
225,096,834 
154,332,071 
130,662,899 
90,879,889 
138,405,673 
113.002.376 
117,476.769 
155,444.185 
144,202,311 
102.676,172 
119,201,515 
197,385,225 



$13,886 
14,530 
15,070 
18,823 
"20,632 
11,678 
11,651 
17,302 
11,595 
13,672 
17,406 
15.471 
11,025 
22,751 
12,458 
13.124 
14,952 
11,559 
10,722 

0,733 
12,S54 
10,279 
10,114 
12,879 
11,820 

8,913 
11,150 
16,834 






■Democratic and low tariff period. 



WHEAT PRODUCTION AND CONSUMPTION. 



Wheat Production and Consumption of the United States and 
Production of the World. 

This table shows the production, exports, quantity retained 
for consumption, consumption per capita, and farm value of 
wheat in the United States, for a long term of years. The per 
capita consumption, a measure of the prosperity of the people. 
was, it will be observed, larger in 1906 than in any earlier 
year ; the value of the crop per acre in 1905, 1906 and 1907, 
greater than in many years ; the production unusually large, 
but the exportation much below the annual average prior to 
1904. indicating that the requirements of our own population 
are rapidly approaching present productive capacity and justify- 
ing the efforts of the present administration to expand the 
producing area of the country through irrigation, drainage and 
the conservation of natural resources. 



Quantities of wheat produced in the United States and w the 
world, and of wheat and wheat flour exported and retained 
for consumption, 1811 to 1901 ; flour reduced to ivheat at i*4 
bushels to barrel. 

[From the Statistical Abstract.] 



Year 
ending Produc- 
June30— tion. 

(a) 


Exports 

of 

domestic. 

Bushels. 
57,043,036 

V'2, 07 1.726 
150,502,506 
KM), 304, 180 
1S6.3-21.5U 
121,892,389 
1 17,811,316 
111,534,182 


Domestic 
retained 
for con- 
sumption. 

Quantity. 


Per 

capita 
con- 
sump- 
tion. 


Value 

of crop 

per 

acre. 


Wor d's 
production. 


Bushels. 

1877 289,356,500 

1878 364,196,146 

1879 420,122, $00 

1>80 148,756,630 


Bushels . 
232, 312, 564 
272,154,520 
269,619,804 
268,452,450 
312.2. 

87,701 

$74,151 

309.551,978 


Bush. 
5.01 
5.72 
5.58 
5.35 


$10.09 
14.65 
10.15 
15.27 


1 average 

I crop. 

I 1,914,000,000 


1,868 

■ffl.OOO 

_ i 501,185,470 

1884 421,086,160 


6.09 12.48 
1.08 12.12 
8.64 12.02 
5.64 ' 10.52 


"~2^1i5~666^666 



96 



PROSPERITY. 

Quantities of wheat produced — Continued. 









Domestic 








Year 
ending 


Produc- 


Exports 
of 


retained 
for con- 


captia 


Value 

of crop 

per 


World's 


lutiebO- 
(a). 


tion. 


domestic. 


sumption. 


sump- 


production. 






Quantity. 


tion. 


acre. 






Bushels. 


Bushels . 


Bushels. 


Bush. 






1885 


512,765,000 
357,112,000 
457,218,000 


132,570,366 
94,565,793 
153,804,969 


380,194,634 
262,546,207 
303,413,031 


6.77 
4.57 
5.17 


8.38 
8.05 
8.54 




1886 




1887 


2,434,000,000 


1888 


456,329,000 
415,868,000 
490,560,000 


119,624,344 
88,600,742 
109,430,467 


336,703,656 
327,267,258 
381,129,533 


5.62 
5.34. 
6.09 


8.25 
10.32 
8.98 




1889 




1890 




1891 


399,282,000 


106,181,316 


293,080,684 


4.59 


9.28 


2,432,322,000 


1892 


•611,780,000 


225,665,812 


386.114,188 


5.94 


12.86 


2,481,805,000 


1893 


515,949,000 


191,912,635 


324,036,365 


4.89 


8.35 


2,562,913,000 


1894 


396,131,725 


164,283,129 


231,848,596 


3.44 


6.16 


2,660,557,000 


1895 


460,267,416 


144,812,718 


315,454,698 


4.59 


6.48 


2,562,518,000 


1896 


467,102,947 


126,443,968 


340,658,979 


4.85 


6.99 


2,506,320,000 


1897 


427,684,346 


145,124,972 


282,559,374 


3.95 


8.97 


2,236,268,000 


1898 


530,149,168 


217,306,004 


312,843,164 


4.29 


10.86 


2,948,246,000 


1899 


675,148,705 


222,618,420 


452,530,285 


6.09 


8.92 


2,783,885,000 


1900 


547,303,846 


186,096,762 


361,207,084 


4.74 


7.17 


2,640,751,000 


1901 


522,229,505 


215,990,073 


306,239,432 


3.95 


7.61 


2,955,975,000 


1902 


748,460,218 


234,772,515 


513,687,703 


6.50 


9.37 


3,090,116,000 


1903 


670,0fi3,008 


202,905,598 


467,157,410 


5.81 


9.14 


3,186,883,000 


1904 


637,821,835 


120,727,613 


517,094,222 


6.33 


• 8.96 


3,147,627,000 


1905 


552,399,517 


44,112,910 


• 508,286,607' 


6.15 


11.58 


3,317,381,000 


1906 


692,979,489 


97,609,007 


595,370,482 


7.07 


10.83 


3,423,134,000 


1907 


735,260,970 


146,700,425 


588,560,545 


6.86 


10.37 


3,111,059,000 



a The production and value pex 
the fiscal year. 



acre relate to the calendar year preceding 



Prosperity has come at home; the national honor and in- 
terest have heen upheld abroad.- From President Roosevelt's 
speech of acceptance. 

The price of wheat is fixed by the law of supply and de- 
mand, which is eternal; gold has not made long- crops or 
short crops, high prices or low prices. — Maj. McKinley to 
Homestead workingmen, September 12, 1896. 

"We must regard and have an interest in what oar neigh- 
bors are doing, and when we can assist them, we cannot 
pass by on the other side as the Levite did, bat we mast 
take them up as the Good Samaritan did and bind ap their 
wounds and prepare to send them on their way rejoicing.— 
Hon. Wm. H. Taft, at Cleveland, Ohio. 

The true welfare of the country is ihdissolubly bound up 
with the welfare of the farmer and the wage-worker — of the 
man who tills the soil, and of the mechanic, the handi- 
craftsman, the laborer. If we can insure the prosperity of 
these two classes we need not trouble ourselves about the 
prosperity of the rest, for that will follow as a matter of 
course. — Vice-President Roosevelt at opening of Pan-Amerl- 
ean Exposition, May 20, 1901. 

In the first place it is said that the policy of the admin- 
istration has been directed for the last four years against 
organized capital, and that it has thereby frightened in- 
vestors. I deny it. The course of the administration has 
been directed against such organized capital as was vio- 
lating the statutes of the United States — and no other. It 
had every consideration and desire to aid and assist organ- 
ized capital which was engaged in legitimate business. — Hon. 
Wm. H. Taft, to Merchants and Manufacturers' Association, 
Boston, Mass. 

The tide of prosperity may ebb and flow, but the great 
waves of industrial wealth will continue to grow in volume 
with ever-increasing comfort and happiness to our con- 
tented people, who will soon number 100,000,000. And be-, 
cause of our intelligent and skillful labor, made so because 
of good wages and good living, we shall make better fabrics 
and build stronger structures— that in spite of their higher 
cost in the beginning will be cheaper in the end and wil' 
be wanted by the people in every corner of the earth. So 
that we shall capture the markets of the world in greater 
volume without ever sacrificing our home market, the foun- 
dation of our National wealth and progress.— Hon. James, 
S. Sherman. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



PROSPERITY. 



97 



Hnaneial, 



commercial, and industrial conditions in the United 
States, 1892, 1896, and 1901. 



ITEMS. 


1892. 


1896. 


1907. 


Population 


65,085,000 


70,254,000 


85,817,000 


Interest-bearing debt dolls.. 


585,029,330 


847,363,890 


894,834,280 


Armual interest charge dolls.. 


22,893,883 


34,387,266 


21,628,914 


Annual interest per capita cts._ 


35 


49 


25 


Receipts from customs c!oLls._ 


177,452,964 


160,021,752 


332,233,363 


Treasury receipts, net ordi- 








nary dolls.. 


354,937,784 


326,970,200 


663,140,334 


Gov't expenditures (a) dolls.. 


. 345,023,331 


352,179,446 


578,903,748 


Gold in Treasury dolls.. 


114,612,892 


102,494,781 


304,619,431 


Gold and gold certificates in 








circulation (b) dolls.. 


549,662,443 


497,103,183 


bl, 161,769,607 


Money in circulation dolls.. 


1,601,347,187 


1,506,434,966 


b2, 772, 956, 455 


Money in circulation, per 








capita dolls.. 


24.56 


21.41 


b32.22 


Bank clearings, New York.. dolls.. 


36,279,905,236 


29,350,894,884 


95,315,421,238 


Bank clear'gs, total, U. S— dolls.. 


60,883,572,438 


51,935,651,733 


154,662,515,258 


- Loans and discounts, nat'l 








banks dolls.. 


2,127,757,191 


1,971,642,012 


4,631,143,692 


Savings bank depositors (c) 








No. dolls- 


4,781,605 


5,065,494 


8,588,811 


Sayings bank deposits (d)__dolls__ 


1,758, 329, 61S 


- 1,935,466,468 


3,495,410,087 


Bank deposits, total dolls.. 


4,664,934,251 


4,945,124,424 


13,099,635,348 


Industrial life insurance in 








force dolls— 


583,527,016 


888,266,586 


2,453,616,207 


Total life insurance in 








force do'ls.. 


4,897,731,359 


5,943,067,492 


13,706,810,284 


Imports dolls.. 


827,402,462 


779,724,674 


1,434,421,425 


Imports, per capita (e) dolls.. 


12.50 


10.81 


16.55 


Exports dolls. . 


1,030,278,148 


882,606,938 


1,880,851,078 


Exports, per capita (f) dolls.. 


15.61 


12.29 


21.60 


Excess of exports over im- 








ports dolls.. 


202,875,686 


102,882,264 


446,429,653 


Imports of mfr's materials.. dolls.. 


1S8,317,595 


197,646,852 


477,027,174 


Exports of manufactures.. ..dolls.. 


183,076,682 


258,008,885 


740,123,451 


Share mfr's form of ex- 








ports per cent- 


18.02 


29.89 


39.92 


Exports of meat and dairy 








products <ioiis__ 


141,2(0,834 


133,377.540 


202,392,508 


Exports to Asia and Oceania.dolls.. 


35,163,117 


42,827,258 


133,889,857 


Exports to Porto Rico dolls.. 


2,856,003 


2,102,094 


g25,686,285 


Exports to Hawaii dolls.. 


3,781,628 


3,985,707 


hl4,435,725 


Exports to Philippine Isles.. dolls.. 


60,914 


162,446 


8,661,424 


Animals on farms, total 








value dolls— 


2,461,755,608 


1,727,926,084 


4,423,697,853 


Horses dolls.. 


1,007,593,636 


500,140,186 


1,846,578,412 


Cattle dolls- 


922,127,287 


872,883,961 


1,527,054,378 


Mules dolls— 


174,882,070 


103,204,457 


428,063,613 


Swine dolls.. 


241,031,415 


186,529,745 


417,791,321 


Sheep dolls.. 


116,121,290 


65,167,735 


204,210,129 


Sheep, total in U. S No.. 


44,938,365 


38,298,783 


53,240,282 


Sheep, av. val. per head— dolls.. 


2.60 


1.70 


3.95 


Farm products, value- 








Corn dolls— 


642,146,630 


491,006,967 


1,336,901,000 


Wheat dolls- 


322.111.8S1 


310.602,539 


554,437,000 


Oats dolls- 


209,'253,611 


132,485,033 


334,568,000 


Hay dolls- 


490,427.798 


388,145,614 


743,507,000 


Potatoes dolls.. 


103,567,520 


72,182,350 


183,880,000 


Wool production lbs.. 


294,000,000 


272,474,708 


298,294,750 


Wool dolls.. 


79.075.777 


32,529,536 


78,263,165 


Cotton production dolls.. 


313,000.000 


269,116.000 


578,000,000 


Beet-sugar production tons- 


5,000 


29,000 


432,000 


Mineral production. ._ dolls.. 


622,543,381 


640,544,221 


j 1,902, 517, 565 


Coal production tons— 


160, 115, 2 42 


171,416,393 


j369,783,281 


Pig-iron production tons— 


. 9,157,000 


8,623,129 


25,781,361 


Steel rails mfg tons— 


1.298,936 


1,300,325 


j3, 977, 872 


Steel manufactured tons.. 


4,927,581 


5,281,689 


23,398,000 


Exports of iron and steel— .dolls.. 


28,800,930 


41,160,877 


181,530,871 


Tin plates manufactured lbs.. 


42,119,192 


359,209,798 


j 1,293, 738, 880 


Tin plates imported lbs.. 


422,176,202 


385,138,983 


142,529,400 


Pig tin imported lbs._ 


43, 90S, 652 


49,952,957 


96,013,005 


Domestic cotton used in 








mfg bales.. 


2,858,000 


2,505,000 


5,005,000 


Silk imported for mfg lbs.. 


8,831,019 


9,363,987 


18,743,904 


Hides and skins imported... dolls.. 


26,850.218 


30,520,177 


83,206,545 


Rubber imported for mfg lbs__ 


39,976,205 


36,774,460 


76,963,838 


P. 0. Dept., receipts of dolls.. 


70,930,476 


82,499,208 


183,585,006 


Telegraph messages sent No.. 


71,722,589 


72,221,896 


98,480,007 


Telephone subscribers (k) No._ 


216,017 


281,695 


3,035,533 


Patents issued No.. 


23,559 


23,273 


36,620 


Failures No__ 


10,344 


15,088 


11,725 


Failures, liabilities dolls.. 


114,044,167 


226.096,834 


197,38 


Original homestead entries. acres.. 


16,808,791 


4,830,915 


14,754,585 


Railways built miles— 


i, in 


1,654 


j5,294 


Railways, net earnings dolls.. 


852, 817, 405 


332,766,979 


J790,1S7,712 


Railways, dividends paid— .dolls.. 


93, S^, 412 


81,528,154 


j 253, 3 40, Or, 


Railways, employees No.. 


821.415 


m785,034 


jl. 521, 355 


Railways, wages paid dolls.. 


440,318,900 


mtl5.508,261 


Jn9D0,8Ol,653 


Railways, freight carried tons- 


730,615,011 


773,868,716 


jl, 610, 099,829 


Railway passengers, carried— No.. 


575,769,678 


535,120,756 


j 815, 744, 118 



98 



PROSPERITY. 



Financial, commercial, and industrial conditions in the United 
States, 1892, 1896, and 1901.— Continued. 



ITEMS. 



1907. 



Railways, freight receipts, 
ton per mile cents.. 

Railways sold under fore- 
closure miles__ 

Freight passing Sault Ste. 
Marie canals tons.. 

WHOLESALE PRICES (ANNUAL 
AVERAGE). 

Wheat per bush— 

Corn per bush— 

Oats per bush__ 

Flour, patent barrel.. 

Hogs, heavy 100 lbs.. 

Bacon, short clear sides—pound— 

Steers, choice to extra 100 lbs.. 

Beef, fresh native sides pound- 
Coffee, Rio No. 7 pound- 
Sugar, granulated pound.. 

Tea, Formosa, fine pound- 
Men's shoes, vici kid pair- 
Men's shoes, brogan pair.. 

Serge suitings yard- 
Women's dress goods, cash- 
mere yard 

Wool, Ohio, and XX, 

scoured pound- 
Coal, anthracite, stove ton- 
Coal, bituminous, at mine.— ton- 
Petroleum, refined gallon.. 

Pig iron, foundry No. 1 ton- 
Wire nails 100 lbs— 

Cut nails 100 lbs— 

Tin plates (o) 100 lbs.. 

Steel rails ton- 
Steel billets ton- 
Rope, manila, % inch pound.. 



94 


82 


77 


1,922 


13,730 


114 


10,647,203 


17,249,418 


44,087,974 


Dollars. 


Dollars. 


Dollars. 


0.7876 


0.6413 


0.9073 


.4500 


.2580 


.5280 


.3042 


.1801 


.4501 


4.3466 


3.7957 


4.8755 


5.1550 


-3.3579 


6.0800 


.0787 


.0494 


.0954 


5.0909 


4.5957 


6.5442 


.0762 


.0698 


.0884 


.1430 


.1233 


.0658 


.04354 


.04532 


.04051 


.3008 


.2583 


.2300 


2.5000 


2.2500 


2.500 


1.0375 


.9938 


1.2729 


.9100 


.6143 


1.05 


.3724 


.1960 


.3920 


.6119 


.3940 


.7181 


4.1532 


3.7942 


4.8215 


.9000 


.9000 


1.5375 


.0794 


.1039 


. 1346 


, 15.7492 


12.9550 


23.8950 


2.1896 


2.9250 


2.1167 


1.7583 


2.7125 


2.1625 


5.3050 


3.4354 


4.0900 


30.0000 


28.0000 


28.0000 


23.6308 


18.8333 


29.2533 


.1148 


.0664 


.1290 



a "Net ordinary expenses" include expenditures for War, Navy, Indians, 
pensions, payments for interest, and "Miscellaneous," but do not include pay- 
ments for premiums, principal of public debt, or expenditures for postal service 
paid from revenues thereof. 

b As the result of special investigation by the Director of the Mint a reduc- 
tion of $135,000,000 was made in the estimate of gold coin in circulation on July 
1, 1907, as compared with the basis of previous years. 

c Includes depositors in Illinois State banks having savings departments, for 
number of which see report of the Comptroller of the Currency. 

d Exclusive of Illinois State banks having savings departments. 

e Based on imports for consumption only. 

f Based on domestic exports only. 

g Shipments to Porto Rico. 

h Shipments to Hawaii. 

i Includes corn, wheat, oats, barley, rye, buckwheat, potatoes, and hay. 

j 1906. 

k Includes statistics of American Telephone and Telegraph Company and 
operating companies associated with it. 

1 1893. 

m 1895. 

n Excludes compensation paid by Southern Pacific Company, not reported. 
Corresponding amount paid in 1905 was $27,530,117. 

o 1892 figures are for imported tin; those of subsequent years, of domestic 
manufacture. 



The policy of Washington is the policy of the Republican 
party. — Senator Cullom. 

Luxuries to the European laborer are necessities to the 
American. — Senator Frye, in the American Economist. 

The people have no patience -with those who would violate 
the plighted faith of the nation and stamp its obligations 
with dishonor. — Hon. Wm. McKinley to delegation of farmers, 
at Canton, September 23, 1896. 

The business men of our community as a -whole are honest 
and their methods are sound. The President has never said 
otherwise. Indeed, it is chiefly in the interest of the great 
body of honest business men that he has made his fight 
for lawful business methods.-— Hon. Wm. H. Taft, to Mer- 
chants and Manufacturers' Association, Boston, Mass. 



THE TARIFF 



Protection to American labor and industry was one of the 
leading motives which led to the Constitution — in fact, said 
Webster, "Without that provision in the Constitution it never 
could have been adopted." It is not to be wondered at then that 
the first revenue law placed upon our statute books provided 
for the encouragement and protection of manuiactureris. vv.^.- 
the list of articles enumerated was small as compared to thj 
extended schedule of to-day, yet the law was found to be most 
effective in inaugurating an industrial policy and an industrial 
advance, which has continued with more or less force and with 
comparatively few interruptions to the present day. This first 
tariff law continued in force practically without material change 
until 1812, when it was enacted : 

"That an additional duty of 100 per cent upon the permanent 
duties now imposed by law upon goods, wares, and merchandise 
imported into the United States shall be levied and collected upon 
all goods, wares, and merchandise which shall, from and after 
the passing of this act, be imported into the United States from 
any foreign port or place." 

And it was further enacted : 

"That this act shall continue in force so long as the United 
States shall be engaged in war with Great Britain and until the 
expiration of one year after the conclusion of peace, and no 
longer : Provided, however, That the additional duties laid by 
this act shall be collected on all such goods, wares, and merchan- 
dise as shall have been previously imported." 

This wajtathe only complete revision of the tariff that has 
taken placj^H our history on account of war. The increase in 
tariff rates£*«oupled with the prohibitions of non-intercourse, 
threw us on our resources and resulted in the establishment of 
many new industries, which, in spite of the ravages of war, 
brought immense increase of national wealth and business ac- 
tivity. 

In a special message to Congress, February 20, 1815, Presi- 
dent Madison asked — 

"Deliberate consideration of the means to preserve and pro- 
mote tne manufactures which have sprung- into existence and at- 
tained an unparalleled maturity throughout the United States 
during the period of the European wars." 

The law of 1812 terminated on February 17, 1816, by its 
own provision, one year after the ratification of the Treaty of 
Ghent. Fearing that the duties existing- before the war would 
not afford sufficient protection to the newly established indus- 
tries, it was the determination of the leaders of the time that 
those duties should be increased in the new law of 1816; and 
the intention was to make the tariff a thoroughly protective 
one, yet it proved a failure, as the framers of that tariff had 
not anticipated the inundation of goods with which our country 
would be hooded from abroad and particularly from England 
because of the stocks that had accumulated there for several 
years. We, therefore, experienced our first great industrial de- 
pression, which lasted until 1824, when the first thoroughly pro- 
tective tariff law was enacted, by which, in the words of the 
i late President McKinley : "The nation was quickened into new 
life, and the entire country under the tariff moved on to higher 
triumphs in industrial progress, and to a higher and better 
destiny for all of its people." In 1828 still higher duties were 
substituted. The operation of the law brought great dissatis- 
faction in the South, resulting in Nullification in South Carolina, 
which, however, was quickly suppressed by President Jaek- 
' son. The agitation against the high duties of the 1828 tariff 
led to the compromise tariff of 1832, which provided for a 
gradual reduction every two years until only 20 per cent should 
remain. Long before the final reduction, however, the panic of 
1837 came upon the country, bringing disaster on every hand and 
the greatest business depression wjhich the country had up to that 
time known. L', 

99 
9 



100 THE TARIFF. 

The election of the Whigs in 1840 was followed by the tariff 
of 1842 — an adequate protection measure, and a revival / of 
industry and prosperity immediately followed. But the Demo- 
crats again came into power in 1844, and under the leadership 
of the Secreary of the Treasury, Robert J. Walker, of Missis- 
sippi, a new law was framed in 1846 which remained in 
force until 1857, when the duties were further reduced and 
when another severe panic followed with accompanying distress 
to all phases of commerce and industry. This period from 
1846 to 1860 was accompanied by the nearest approach to free 
trade in our history, and while the country enjoyed more or 
less progress and periods of prosperity in certain industrial 
lines, owing largely to demands abroad for our agriculaural 
products, due' to foreign wars and famines, yet in spite of these 
favorable conditions, the so-called Walker Tariff and tariff of 
1857 brought widespread ruin to many of our industries and 
checked our industrial progress. 

When the Eepublicans came into power in 1860, they were 
confronted with a country nearly bankrupt, with an empty 
Treasury, with industries prostrated, with expenditures exceed- 
ing receipts, and with an unfavorable balance of trade. Mr. 
Morrill, of Vermont, then Chairman of the Ways and Means 
Committee, framed a bill on protective tariff lines, which passed 
the House of Eepresentatives on May 11, 1860, and the Senate 
in the early part of 1861, being signed by President Buchanan 
on March 2, 1861. *It was really the first measure of any kind 
enacted by the Republican party, and since that law was placed 
on the statute books the Republican party has persistently and 
consistently advocated and enacted tariff laws which during 
their operation have not only afforded sufficient revenue, but 
have given ample protection to American labor and industry 
against the competition of cheaper labor abroad. Tnis first law, 
due to the wisdom of Republican leaders, was in noway intended 
to be a war measure, and after the war broke out 'and during 
four years of its continuance, it was repeatedly amended to 
meet existing conditions. After the close of the war and 
during the years which followed numerous changes were made, 
reducing many of the high rates made necessary as revenue 
producers during the war period, but the Republican principle 
of protection was retined so long as the legislative and exec- 
utive power remained in the hands of the Republican party. 

The McKinley law enacted in 1890 was accepted by all 
Republicans and Protectionists as the best tariff law that had 
ever been framed up to that time. Under its operation the 
country was at the height of its prosperity and progress in 
1892, when suddenly to the consternation of the industrial world 
a Democratic President was elected, and with him a Democratic 
Senate and House of Representatives. Anticipating the enact- 
ment of a tariff law largely for revenue only, a financial and 
industrial panic came over the country, which continued until 
it was arrested by the enactment of the so-called Dingley Tariff 
in 1897. Carrying out their threat, the Democrats framed and 
passed a low tariff bill in 1894, which became a law without the 
signature of the President and remained in force until July 
24, 1897. 

Since 1897 to the present time the Dingley law has been in 
operation, and under it the United States has shown a progress 
and prosperity never before known in the history of civilization. 
On other pages will be found detailed tables showing the changes 
from year to year in the various phases of our industrial life, 
in our foreign trade and domestic production, and in the state 
of the Treasury, and these tables will vindicate to the very 
last degree the wisdom of the Republican party in framing what 
has been without question as nearly perfect a tariff law as it 
was possible to frame to meet equitably the needs of all sec- 
tions of the country, all classes of people, and all diversified 
industries. To show compactly what progress has been made 
under the Dingley law the following tabulation is given. The 
year 1896 is taken as the last full year of the Cleveland Free 
Trade Administration, and 1907 is taken as the last full year for 
which the figures are available. 



TEE TARIFF. 

Conditions in 1901 compared with those of 1896. 



101 



Population. 



Population 

Money in circulation 

Bank clearings 

National banks deposits 

Savings banks deposits 

State banks deposits 

Receipts of the Gov't (net ordinary) 

Expenditures 

Imports _, 

Exports . 

Exports of manufactures 

Farm products 

Value of farm animals 

Corn (farm values) 

Wheat 

Oats 

Cotton 

Hay 

Coal mined — tons— 

Pig iron manufactured tons— 

Steel tons- 
Tin plate manufactured pounds- 
Domestic cotton consumed— bales- 
Sugar consumed —tons- 
Railways miles.. 

Freight carried by railways.— tons- 
Post office receipts 







Increase 


1896. 


1907. 


per 
cent. 


70,254,000 


85,817,239 


22.15 


$1,506,434,966 


$2,772,956,455 


84.07 


$51,935,651,733 


$154,662,515,258 


197.80 


$1,668,413,508 


$4,322,880,141 


159.10 


$1,935,466,468 


$3,495,410,087 


80.59 


$695,659,914 


$3,068,649,860 


341.11 


$326,976,200 


$663,140,334 


102.81 


$352,179,446 


$578,903,748 


64.38 


$779,724,674 


$1,434,421,425 


83.97 


$882,606,938 


$1,880,851,078 


113.10 


$2.58,008,885 


$740,123,451 


186.86 


a$ 4 ,250, 000, 000 


$7,500,000,000 


76.38 


$1,727,926,084 


b$4, 331, 230, 000 


150.66 


$491,006,967 


$1,336,901,000 


172.28 


$310,602,539 


$551,437,000 


78.50 


$132,485,033 


$334,568,000 


152.53 


$291,811,564 


C$721,647,237 


147.30 


$388,145,614 


$743,507,000 


91.55 


171,416,390 


C369,783,284 


115.72 


8,623,127 


25,781,361 


198.88 


5,281,689 


c23,398,136 


343.00 


359,209,798 


Cl, 293, 738, 880 


260.16 


2,505,000 


5,005,000 


99.80 


1,960,086 


2,993,978 


52.75 


182,769 


C222.635 


21.81 


773,868,716 


1,610,099,829 


108.06 


$82,499,208 


$183,585,006 


122.53 



a Department of Agriculture estimate for 1897. b 1908. 



c 1906. 



To show in brief the important changes and revisions of the 
tariff during our history and their result, the following sum- 
mary is given, beginning with the tariff of 1812, the first im- 
portant revision following the first law of 1789. 

Important tariff revisions. 



jo 

1812 
1816 

1824 

H828 
1832 
1833 

1842 
1846 

1857 



1861 

1861 
1862 
1863 
1864 
1865 
1867 

1870 

1872 

1875 



1894 
1897 



Reason for Revision. 



War 

To provide new rates after 

repeal of war duties. 
Ruinous condition of indus 

tries. 
To increase prosperity ... 

Conciliation , 

Compromise to save the 

Union. 
To save our industries . 
To satisfy the Southern free 

traders. 
To decrease the revenue 

and still further satisfy 

the South 

First Republican tariff for 

revenue and protection, 

I To meet requirements of 
war. 

To help wool and woolen in- 
dustries. 

To establish new industries, 
especially iron and steel. 

To conciliate "reformers.". 

To correct act of 1872.... 
To conciliate revisionists.. 



To meet existing conditions 
To try free trade 



To provide revenue and to 
protect our failing indus- 
tries. 



Time con- 
sumed.* 



No debate. 
39 days 

4% months 

4 months . 
6 months . , 
2 months . 

5 months. 
sy 2 months, 

6 months . . 



11 months, 

Passed 
promptly 

7 months . , 

4 months . , 
3 months . . 

1 month . . . 

2 months.. 

5^ months. 

8 months. . 

5 months. .. 



Nature 
of change. 



Rates doubled. 
Moderate protec- 
tion. 
Substantial in- 
crease. 
Further increase. 

Decrease 

Do 

Increase 

Free trade and ac 

valorem duties 

Further decrease 



Increase 



General increase. 



Upward changes. 

$28 per ton on 
steel rails. 

10 per cent re- 
duction. 

Repeal of 10 per 
cent reduction. 

Reduction and 
increased free 
list. 

Increase and spe- 
cific rates. 

Large reduction, 
free wool, etc.. 

Substantial in- 
crease. 



Result. 



Beneficial. 
Disastrous, 

Beneficial. 

Do. 
Injurious. 
Disastrous. 

Beneficial. 
Ruinous. 

Bankruptcy. 



Beneficial. 

Do. 

Do. 
Do. 

Injurious. 
Beneficial. 
Injurious. 

Beneficial. 

Ruinous. 

Beneficial. 



* This is the time of actual debate and passage, exclusive of time spent 
agitation, hearings, and preparation. 



102 THE TARIFF. 

The tenets of the Democratic party being" to the effect that 
a tariff should be for revenue only, while many of the leading- 
Democrats advocate absolute free trade, it is not difficult to 
draw the line between the two parties and foretell what would 
be the result of a change in our system, which has been so 
successful, so thoroughly tried, and so fully vindicated.^ Every 
prominent industrial country on earth except one has resorted 
to the protection of their labor and industries, and it is thought 
that within a few years even Great Britain, the only free trade 
country on earth of any importance, will change her fiscal 
policy and again adopt the system of protection. It would 
be folly then for the United States to abandon a system under 
which she has thrived to an unparalleled degree and adopt a 
system discarded by practically every other nation and com- 
petitor in the world's markets. 

Perhaps the most persistent complaint maue against the pro- 
tective tariff is the cry that the tariff is the "Mother of 
Trusts," to use the careless words of a departed monopolist. 

Trusts, however, are not a product confined to the United 
States or to protective countries, as Free Trade England is 
covered with them from one end of the country to the other ; 
in fact, they were in force there long before they were in the 
United States. There may be combinations of capital or labor 
and associations of corporations and communities of interests 
that are for the best interest of all concerned, and there may 
be those which are inimical to the welfare of a part of the people 
and which give advantage to another part. The question must 
be studied and considered and handled entirely apart from the 
tariff. 

Kegarding the charge that under our protective system our 
manufacturers are selling goods abroad cheaper than at home, 
it may be said that this universal principle of business, of pro- 
duction, and markets, is indulged in to a far less degree in 
the United States than abroad, and at no time to the injury 
of the American laborer. We also sell many things abroad at a 
larger price than we do at home. We sell things according to 
the markets, according to prices, according tg supply and de- 
mand, according to the universal principle of competition, but 
always to the advantage of the American laborer, who reaps 
a higher reward for his labor than can be found elsewhere on 
the face of the earth. While it is possible that a fraction of 1 
per cent of our goods sold abroad now may be at a price less than 
at home, it can be stated without fear of successful contradic- 
tion, that under free trade we would lose our splendid home 
market and be obliged to seek foreign markets in competition 
with the cheap labor of the world, without profit to our man- 
ufacturers or suitable wages to our workmen. 

The export discount bugbear does not any long-er deceive 
the American laborer, for the American voter and the American 
workingman prefers to see our factories running 12 months 
a year instead of being shut down for two or three months, 
and a stock of surplus goods piled up in warehouse. These two 
principal objections that the Democrats make to the operation 
of our protective system, viz, that it fosters trusts and enables 
us to maintain profitable prices at home, have been shattered 
time and time again. Opposed to them are the many favorable 
and successful results which have come to our great country 
during the past half century, and particularly during the last 
decade under the operation of a fiscal system which limits the 
importation of competitive products to displace the goods that 
should be manufactured by our own people. 

Of the many satisfactory reasons for maintaining a pro- 
tective tariff, the greatest of course will be that of the high 
wages insured to the American workingman. Tables showing 
the wages of labor in the United States and other countries 
are published on another page of this volume, though these 
are scarcely required since there is not an intelligent man 
living to-day who does not know that the American workman 
gets two and three times, and even quadruple the wages of 
low tariff countries. There is no man but who knows that 
the standard of living of the American laborer is higher than 
in any other country, that he not only gets more money in 



THE TARIFF, 1780 TO 1908. 103 

wages, but far more comforts at home, that his family is 
better housed, better fed, better clothed, better educated, enjoys 
more of the conveniences and comforts and luxuries of life than 
is ever dreamed of by the average laborer of Europe. So long as 
the Kepublican par-ty remains in power there will be no abandon- 
ment of an industrial system made possible by tariff law that will 
maintain this standard of living to the American workmen. 

Another reason why we should continue our tariff on pro- 
tective lines is that it gives us a surplus in the Treasury. Under 
the operation of the Dingley law, since the Spanish war our re- 
ceipts have exceeded our expenditures by nearly $300,000,000. It 
is possible that a deficit may come for a single year or two, due 
to a temporary depression in business or to extraordinary expen- 
ditures, but this will undoubtedly adjust itself and with a large 
surplus for just such an emergency, there need be no alarm, be- 
cause in a single year or even a two year period the expenditures 
may exceed our receipts. Our government receipts consist almost 
wholly of customs duties and the so-called internal revenue, and 
this internal revenue must depend largely upon the prosperity of 
the people, upon their purchasing power ; and being derived al- 
most wholly from a tax upon luxuries, it must depend almost as 
wholly upon a surplus wage fund maintained over the expendi- 
tures for the necessaries of life. The internal revenue then is most 
directly associated with the tariff, for the reason that if duties 
are lowered and foreign goods are allowed to come into the 
country, displacing American products and making idle Ameri- 
can workingmen, the internal revenue will immediately fall off 
in proportion. As regards the claim which the Democrats and 
free traders advance, that a lowering of duties will result in 
increased importations and increased revenue, the opposite has 
always been shown to be the result. Although for a time 
the purchase of foreign goods might increase, yet when the 
people become impoverished from lack of work and lack of 
wages, their purchasing power is reduced, no matter how cheap 
the articles may be. Protection then insures adequate revenue, 
without resorting to direct taxation, which has always been ob- 
noxious to the American people, and which will not be resorted 
to unless to meet the exigencies of war. 

Another argument which the Free Traders and Democrats 
are delighted to indulge in has been that if we do not buy 
we cannot sell. In the eleven years of the Dingley tariff our 
sales abroad have practically doubled and we are to-day in the 
first rank as an exporting nation, and during this time our 
favorable balance of trade has exceeded four billion dol- 
lars. These foreign markets which we have been gaining 
against the competition of the great industrial nations of the 
earth, we have gained without sacrificing any portion whatever 
of our splendid home market, which is the envy of the civilized 
world. 

The tariff planks of the Republican and Democratic platforms 
since 1856 are printed on another page of this volume, as shown 
by the index. 

Following these various changes the general statement can 
be made that whenever in our history the tariff has been reduced 
in whole or in part, a business depression has followed, and in 
many cases most severe commercial and industrial panics. The 
general statement can also be made that in every instance where 
the tariff has been increased, or a higher duty placed upon any 
article, prosperity has followed in general throughout the coun- 
try, and the particular article or class of articles to which pro- 
tection was given or upon which the protection was increased 
showed a most substantial advancement. Besides the general re- 
vision shown in the preceding table there have been at various 
times changes in our tariff schedules, not affecting the entire 
list of articles. The various tariff laws are shown in detail in 
the following table: 

Our Principal Tariff Laws. 

Date of such act. Character of the bill and other remarks. 

1789, July 4 Specific and ad valorem rates, latter from 5 to 

15 per cent. 

1790, August 10.. Specific and ad valorem rates, latter from 3 to 

15J4 per cent. 



104 TEE TARIFF, 1789 TO 1908. 

Date of such act. Character of the bill and other remarks. 

1791, March 3 This act only affected "spirits" paying specific 

duties. 

1792, May 2 Specific and ad valorem rates, latter from iy 2 

to 15 per cent. 

1794, June 7 Specific and ad valorem rates, latter from 10 

to 20 per cent. 

1795, January 29. This act affected but few articles paying spe- 

cific and ad valorem rates. 

1797, March 3... This act affected but few articles paying spe- 
cific and ad valorem rates. 

1797, July 8 This act only affected salt paying a specific 

duty. 

1800, May 13 This act affected but few articles paying spe- 
cific and ad valorem rates. 

1804, March 26.. This act, commonly called "Mediterranean 
fund," imposing an additional duty of 
2y 2 per cent in addition to the duties now 
imposed by law. 

1804, March 27.. This act affected but few articles paying spe- 
cific rates. 

,18-12, July 1 This act imposed DOUBLE DUTIES, known as 

WAR DUTIES. 

1813, July 29.... This act only affected salt paying a specific 
duty. 

1816, February 5. This act continued the double duties to 30th of 
June, 1817. 

1816, April 27... Specific minimum and ad valorem rates, latter 
from iy 2 to 30 per cent. 

1818, April 20... This act affected but few articles paying spe- 

cific rates. 

1819, March 3... This act only affected "wines" paying specific 

rates. 

1824, May 22 Specific, minimum, compound, and ad valorem. 

latter from 12 to 50 per cent, the first 
really Protective tariff. Results were 
most beneficial. 

1828, May 19.... Known as the Tariff of Abominations. Spe- 
fic, minimum, compound and ad valorem, 
latter from 20 to 50 per cent. 

1828, May 24 This act only affected "wines" paying specific 

rates. 

1830, May 20.... This act only affected "coffee, tea, and cocoa," 
paying specific rates, and reducing the 
rates. 

1830, May 29 This act only affected "molasses" paying spe- 
cific rates. 

1830, May 29.... This act only affected "salt" paying specific 
rates. 

1832, July 13 This act only affected "wines of France" paying 

specific rates. 

1832, July 14 Specific, minimum, compound, and ad valorem, 

the latter from 5 to 50 per cent. 

1833, March 2 ... Compromise act — looking to a reduction of du- 

ties to 20 per cent. 

1841, Sept. 11... Specific and ad valorem, latter from 12y 2 to 

20 per cent. 

1842, August 30. Specific, minimum, compound, and ad valorem, 

the latter from 1 to 50 per cent. 

1846, July 30. . .The rates of duty imposed by this act were ex- 
clusively ad valorem, and arranged by 
schedules. 

1857, March 3.. A further reduction of rates which were ex- 
clusively ad valorem, arranged by sched- 
ules. 

1861, March 2... Went into effect April 12, 1861. Intended to 
raise the necessary revenue for the Gov- 
ernment expenditures and afford Protec- 
tion to our labor and industries. 

1861, August 5... First of the war tariffs, large increase in 
duties. 

1861, Dec. 24.... Duties increased on sugar, tea, and coffee. 



Bills changing and generally increasing 
duties. 



THE TARIFF, 1189 TO 1908. 105 

Date of such act. Character of the bill and other remarks. 

1862, July 14 Went into effect August 2, 1862. Further in- 

crease of rates. 

1863, March 3; 
1864, April 20, 
June 30; 1865, 
March 5; 1866, 
March 15, July 
28 _ 

1867, March 2... Rates increased on wool and woolens, giving 

great benefit to those industries. 
1870, -July 14, 
December 20 . . General changes. Free list largely reduced. 

Duty of $28 per ton on steel rails. 

1872, May 1 Tea and coffee made free. 

1872, June 6 Went into effect August 1, 1872. Reduction of 

10 per cent. Increased free list. 
1875, February 8. Revised statute, with slight and unimportant 

changes. 

1874, June 22.... Known as the "Little Tariff Bill." General 

changes. 

1875, March 3. . . Rates increased on sugar. Repeal of the 10 per 

cent reduction of Act of June 6, 1872. 

1879, July 1.... Quinine made free. 

1880, July 14... A few unimportant changes. 
1882, May 6 and 

December 3... Repeals discriminating duty. 

3.883, March 3... Went into effect July 1, 1883. Known as the 
Tariff Commission Bill. General revision, 
reduction and increased free list. Severe 
blow to wool industry. 

1890, October l.Went into effect October 6, 1890. Known as 
the McKinley Bill. Changes from ad val- 
orem to specific rates. Enlarged free list. 
Sugar made free, a bounty being substi- 
tuted. Reciprocity law. 

1894, August 27. Known as the Gorman- Wilson Bill. Became a 
law without the President's signature. 
General reduction of duties. Wool put on 
free list. Results, both anticipatory and 
actual, were disastrous to all industry 
and labor. 

1897, July 24... Known as the Dingley Law and still in op- 
eration unchanged. The most perfect and 
successful tariff law ever enacted. Has 
brought unprecedented prosperity. 

It will be seen from the above table that the present law 
has been in operation unchanged longer than any other tariff 
law in our history, and while many favor continuing the law 
unchanged for the present, still there is such a general demand 
for re-adjustment of schedules to meet changed conditions in 

I our industrial world that it is conceded on all sides that gen- 

j eral revision will be made in the near future. In fact, antici- 
pating such revision both Houses of Congress have asked and 

. received authority to secure information looking to the prepar- 

i ation of a new law. 

In the Senate, on May 16, Mr. Aldrich, from the Committee 
on Finance, reported the following resolution, which was con- 
sidered by unanimous consent and agreed to: "Resolved, That 
the Committee on Finance is authorized, in connection with 
investigations heretofore ordered by the Senate, with the view 
of promptly securing the information necessary for an in- 
telligent revision of the customs laws of the United States, 
to - call to their assistance experts in the Executive Depart- 
pftentSs of the Government and to employ such other assistants 
as 1 hey shall require ; and they are especially directed to report 
what further legislation is necessary to secure equitable treat- 
ment for the agricultural and other products of the United 

j States in foreign countries; and they shall also, in the consider- 
ation of changes of rates, secure proof of the relative cost of pro- 
•iiation in this and in principal competing foreign countries of 



106 TEE TARIFF— REVISION. 

the various articles affected by the tariff upon which changes in 
rates of duty are desirable." 

In the House, on May 16, Mr. Payne, from the Committee 
on Ways and Means, moved the passage of the following tariff 
resolution : "Eesolved, That the Committee on Ways and Means 
is authorized to sit during the recess of Congress and to gather 
such information, through Government agents or otherwise, as 
to it may seem fit looking toward the preparation of a bill for 
the revision of the tariff ; and said committee is authorized to 
purchase such books and to have such printing and binding 
done as it shall require, and, in addition to requiring the atten- 
dance of the committee stenographers, is authorized to employ 
an additional stenographer, and to incur such other expenses 
as may be deemed necessary by said- committee ; and all the 
expenses of said committee shall be paid out of the contingent 
fund of the House on the usual vouchers, approved as now pro- 
vided by law." The resolution was agreed to by a strict party 
vote of 154 yeas to 92 nays. 

The platform adopted at Chicago by the National Eepublican 
Convention and the pledge made in the tariff plank will be 
faithfully kept by those selected to make our laws, in the next 
session of the 60th Congress or in the first session of the 61st 
Congress ; but in the light of history and with the experience 
we have had for 120 years, and the record of the Eepublican 
party on this subject, there can be no doubt that the new tariff 
will be a measure fully protective in principle and framed with 
a view to meet the requirements on an equitable basis of every 
section, every class, and every industry. 

Cause of the Growth of Protection Sentiment at Home and 
Abroad. 

The primary idea in levying a tax upon merchandise entering 
a community or State was to require persons from abroad trad- 
ing in that community to bear their proper share in the public 
expenditures. The tranquillity and order of the community, and 
hence its commercial possibilities, were maintained by the gov- 
ernment, for whose suj)port the local producers and merchants 
were taxed, and it was held that merchants from abroad desir- 
ing to enjoy the privilege of trading in that community should 
contribute their proper share to the maintenance of the govern- 
ment, which assured commercial privileges, and that they should 
contribute a relatively larger percentage of the value of the 
merchandise sold than was required of the local dealer, because 
the foreign merchant carried away with him his profits, while 
the domestic producer or dealer expended his profits in the home 
community in the support of his family or in the employment of 
other members of the community. Hence the tariff — a tax upon 
merchandise entering a community from abroad. 

Danger from Ontside Competition Constantly Increasing* 

Originally the danger to domestic industries from foreign 
competition was much less than at the present time. Merchan- 
dise brought into any country from abroad must first bear the 
cost of transportation, and in times when the cost of transpor- 
tation was great, and when goods were necessarily transported 
by animal power and by sailing vessels only, this high cost of 
carriage was of itself a protection to the domestic producer in 
any country. True, the producer of merchandise just across 
the border line of a country had an enormous advantage ever the 
producer a thousand or five thousand miles distant, but as only, 
a small proportion of the producers were located near to the 
border line such countries did not find it necessary to establish 
high tariffs to protect their own producers or manufacturers. 
The distance which foreign goods must be carried and the cost 
of transportation over that distance alone serve to create a 
protective wall for the domestic producer. In late years these 
conditions of distance and transportation have absolutely 
changed. The railroad and the modern steamship have reduced 
the cost of transportation compared with that in the early part 
or even in the middle of the century just ended ; while the tele- 
graph and the telephone have annihilated distance and time. 



TEE TARIFF. 107 

Merchandise from the interior of Europe, ordered by telephone, 
telegraph, and cable, transported from its place of production 
by trolley road, canalized rivers, or boats operated by steam or 
electricity, or by railway to the Atlantic, and thence by great 
steamships, built to carry hundreds of carloads at a single 
voyage, across the ocean, and again transported to the interior 
of the United States by the cheapest land transportation ever 
known to man, can be placed at the door of the consumer in the 
Mississippi Valley for a very small percentage of the cost of 
transporting the same at the middle of the last century. 



Cheap Freights Have Destroyed Natural Protection. 

As a result the protection which distance and the cost of trans 
portation afforded to the local producer has disappeared, and with- 
out a protective tariff, established by the Government, he has as his 
direct competitor the low-priced labor of any and every part of 
the world. The cheap labor of the densely populated countries 
of Europe, the 140 million low-priced workers of Russia, the 300 
million people of India, whose average wage is but a few cents 
per day, and the 400 million workers of China are to day as 
much the competitors of the workman of the United States as 
though they were located but just across the border. Modern 
methods of transportation and communication have brought 
these great masses of producers to our very doors, and without 
the protection which the tariff, affords would place that cheap 
labor in as close competition with our own as it would have 
been a half century ago if located but a hundred miles away. 

As an example of the reduction in cost of transportation may 
be cited the fact that the annual average freight rare on wheat 
from Chicago to Liverpool, by the cheapest method of trans- 
portation, in 1873 was 40 cents per bushel and in 1903 8 cents 
per bushel, or but one-fifth that of only 30 years earlier. Com- 
paring conditions now with those of the early part of the last 
century the reduction is still greater, and the cost of transporta- 
tion at the present time may safely be said to be less than one- 
tenth of that then existing. An illustration of the redaction in 
cost of transportation through modern methods is found in the 
fact that the census of 1880 showed that the railwa}s could 
transport a ton of wheat for a given distance as cheaply as a 
single bushel could be transported the same distance by horse 
power, and railway rates have fallen practically one-half since 
that time. That high authority the Encyclopedia Fritannica 
states in its 1903 edition that the mechanic in Liverp.ol may 
now pay with one day's wages the entire cost of transporting 
a year's supply of oread and meat for one man from Chicago 
to that city. 

These facts illustrate how completely modern methods have 
destroyed the protection which the local producer formerly had 
against foreign competitors, and explain the reason why modern 
governments have found it necessary, one by one, to adopt the 
protective system, until now many men in the most ardent and 
chief remaining supporter of the nonprotective system, the 
United Kingdom, are seriously discussing the adoption of a 
protective tariff. This gradual destruction of the natural pro- 
tection formerly afforded by distance and cost of transporta- 
tion accounts for the fact that it has been found necessary to 
maintain the protective tariff on the various industries as they 
have developed, and that this necessity for maintaining protec- 
tion for those industries has meantime been recognized by all 
other leading manufacturing countries of the world whose in- 
dustries were developed even before those of the United States, 
except in the case of the United Kingdom, whose people are 
now clamoring for a return to protection of their long estab- 
lished domestic industries. This reduction in cost of trans- 
portation is indeed one of the chief causes of the steady move- 
ment toward protection which has characterized the history 
of the world during the last half century. The fact that, with 
improved methods of transportation and a narrowing of dis- 
tances and cheapening of cost of transportation, the whole 
world has become the next-door neighbor of each community 



108 THE TARIFF. 

has compelled that community to establish tariff duties of a 
character which would reduce the competition offered by the 
cheap labor of those communities against which distance no 
longer affords protection. 

Practically all of the 500,000 miles of railway and 16 million 
tons of steamship tonnage with which the world is now supplied 
have been created since the middle of last century; the worlds 
international commerce has quadrupled while the world's popu- 
lation was increasing but 50 per cent, and during that very 
period the nations of the world have one by one found it 
necessary to establish tariff protection to take the place of that 
protection which distance and high cost of transportation for- 
merly afforded. 



Trusts Have Long Flourished iu Free Trade England. 

No one familiar with the history of trusts and great combi- 
nations in other parts of the world can for a moment accept as 
accurate the assertion that the tariff is responsible for the ex- 
istence of organizations of this general character, whether un- 
der the title of trusts or otherwise. Mr. Blaine, in 1888, on re- 
turning from a visit to Europe, declared in his speech opening 
the Presidential campaign of that year that trusts and com- 
binations to control prices even at that early date existed in 
free-trade England in large numbers ; or, as Senator Dolliver 
has recently expressed it, "England was even then plastered all 
over with* trusts." In October, 1895, a steel-rail trust which em- 
braced the steel-rail manufacturers of Great Britain was or- 
ganized, and on February 5, 1896, the London Ironmonger an- 
nounced the details of its agreement, the chief among them being 
that "there is to be no underselling." In 1895 the Sheffield 
Telegraph published the draft of a scheme proposing the com- 
bination of 200 iron firms in the various cities of Eagland for 
the purpose of regulating the prices of all classes of iron. In 
1897 the details of the combination between the great armament 
manufacturing firms were announced. Some of the great com- 
binations in England for the control of prices of articles in 
common use were organized as early as 1890, among them the 
following: ^The Salt Union, Limited, with a capital of 
$10,000,000 ; in the same year, the Alkali Company, combining 43 
manufacturing establishments, with a capital of $30,000,000; the 
J. & P. Coates Company, thread manufacturers, in 1896, a com- 
bination of four businesses with a capital of $27,000,000 ; another 
cotton thread organization, a year later, combining 15 manu- 
facturing establishments with a capital of $14,000,000 ; a com- 
bination of cotton spinners in 1898, combining 31 establishments 
with a capital of $30,000,000 ; in the same year a combination of 
the dyeing interests, combining 22 establishments with a capital- 
of $22,000,000 ; also in the same year a combination of the York- 
shire Wool Combers, combining 38 establishements with a capi- 
tal of $12,000,000; also in 1898 a combination of 60 calico print- 
ing establishments with a capital of $46,000,000 ; in 1900 a com- 
bination of 28 wall paper manufacturers with a capital of 
$21,000,000, and in the same year a combination of 46 establish- 
ments of cotton and wool dyeing organizations with a capital 
of $15,000,000. In the decade 1890-1900 the public announce- 
ments of combinations in free-trade England included 328 dif- 
ferent business concerns amalgamated into 15 great organiza- 
tions with a total capital of $230,000j000, while a very large 
number of minor organizations and those which were not made 
public should be added to the list to render it complete.* Many 
great combinations have been organized in free-trade England 
since 1900, but this history of the decade in which great com- 
binations of capital of this character have been common in all 
parts of the world where manufacturing capital is plentiful is 
sufficient to show that such combinations and organizations are 
not confined to protection countries, but on the contrary flourish 
with equal vigor in the one free-trade country of the world in 
which a sufficient amount of capital exists to justify the or- 
ganization of combinations of this kind. 






THE TARIFF— THE TRUST QUESTION. 109 

Export Price Reduction in Free Trade England. 

Exportation at prices below those of the home market is not 
in any sense the result of or accomplished by the aid of a pro- 
tective tariff. It is practiced more freely in free trade Great 
Britain than in any other country. United States Consul Rufus 
Fleming, writing from his post in Edinburgh, Scotland, in an 
official report on this subject says : 

" 'It is the policy of British manufacturers to maintain 
prices in the home market at the highest possible level and 
to make whatever concessions may be necessary in foreign, 
markets? said the managing director of a leading British metal- 
working company to me. He referred to the industries in 
general, excepting such as are based largely upon the manufac- 
ture of low-grade goods for the foreign trade. There can be 
no doubt that this manufacturer spoke with full knowledge 
of the subject. His opinion is corroborated by investigation 
in various departments of production. Cutting prices in foreign 
markets to meet competition, or to prevent competition, as 
the case may be, is a common practice, the length to which it 
is carried depending altogether on circumstances, chiefly on 
stocks and labor conditions. When a considerable surplus re- 
mains on the hands of the producer the effort is to avoid over- 
loading the home market and thus reducing the price of the 
bulk of the product to sell the surplus in foreign countries 
at the test price obtainable. 

"At all times, even when great trade conditions at home and 
abroad are excellent, it is the, rule in British industries to quote 
lower prices to foreign buyers and British exporters than to 
the average domestic trader. The difference in favor of the for- 
eigner or exporter ranges from 4 to 6 per cent. The British 
maker of an important machine informs me that, although he 
has no competition, he quotes the machine to customers in 
Belgium and one or two other countries on the Continent at 
15 per cent less than the price at which it is sold in this 
country. The reason is that these Belgian and other Continental 
firms will not pay more than a certain amount for it, and he 
comes to their terms in order to obviate the danger of compe- 
tition arising from the invention and manufacture of a simi- 
lar apparatus in Belgium or elsewhere. He told me that he 
would sell abroad, in the present state of trade, at any price 
he could get above cost. Another example of sales made in 
a foreign market at much/ below home prices has fallen directly 
under my notice. I have seen invoices of a British firm of steel 
wire manufacturers to German buyers in which the prices were 
fully 20% per cent lower than the prices quoted to home cus- 
tomers. This reduction was not due to an extraordinary sur- 
plus, but principally to a determination to put a certain line 
of goods into a competitive market. 

"There are few manufacturers whose business in foreign 
competitive markets is not regularly conducted on the plan of 
getting the goods off their hands at a profit if possible and at 
cost if necessary. It may be doubted if price lists and discount 
sheets are anything more, outside of the home market, than ai'ds 
to bargaining, except in seasons of very marked activity at 
home. In most trades the one fixed purpose is to not reduce 
prices to British consumers until forced to do so. As one manu- 
facturer expressed it to me, 'This is the very root of success 

1 in all commercial business — to hold what you have and gain 
what you can.' 

"Overproduction is an evil no less frequently observed in 
Great Britain than in Germany and the United States. A well- 
known English writer on economic subjects, who belongs to the 
Manchester school, said to me in a recent conversation that 
it was distinctly true, as stated in one of his works on trade 

i relations, that overproduction, although not (in his opinion) 
so widely diffused here as in the United States, was a difficult 
recurring factor in the commercial problem; that "the British 
manufacturer, under such circumstances, recognizes the inadvis- 

| ability of flooding his own markets with cheap commodities, 
which they will require time to digest, thus deferring the 
period when he can supply them again profitably, and therefore 



110 THE TARIFF. 

he sells the surplus to foreign countries at a loss.' He aided 
that 'there is scarcely a tariff wall in existence that the British 
manufacturer will not climb over at such times.' 

"This political economist looks upon the foreign trade as 
distinct from the domestic trade, to be handled by each producer 
as circumstances seem to demand, especially in periods of over- 
production. To the same effect a prominent brewer, an ex- 
member of Parliment, said: T have been dumping ale and beer 
on, foreign markets all my life whenever I have had a surplus. 
Practically every manufacturer in this country sells his goods 
abroad for the best price they will bring when his stock is too 
heavy to be unloaded at home in a reasonable time without break- 
ing til* market.' As I have before indicated, this statement of 
British commercial practice is, in my opinion, unquestionable." 

United States Consul Samuel M. Taylor writes from Glasgow, 
Seothmd: "Generally speaking, manufacturers of soft goods 
(cottons, etc.) have one price for domestic and export trade, 
and surplus stocks are avoided by limiting the output, even to 
the extent of closing the works. However, if there is a sur- 
plus, 'odds and ends,' it is exported at reduced prices. In the 
iron and steel trade, however, it is different. Manufactured 
steei Tor export is sold at from 5 to 10 per cent, less than for 
domestic use, and even at a grfeater reduction. In other words, 
the cost of transportation to a foreign country where compe- 
tition is brisk is largely assumed by the British exporter or 
manufacturer by means of this reduction, and even England 
is treated as foreign by the Scotch manufacturer and gets re- 
ductions accordingly. The Scotch manufacturer neither expects 
nor receives the same profits on his exports to foreign countries 
that he obtains at home. The same statement applies largely 
to. machinery. In Scotland a combination at present exists 
which fixes the x^rice of steel plates for the whole of Scotland, 
but gives the members of the combination power to sell in other 
districts than Scotland at whatever prices they choose. I*n the 
coal trade, in the words of my informant, 'it is well recognized 
that foreign consumers can buy cheaper than home consumers, 
the reason being that colliery proprietors, could not dispose 
of their product with the regularity and in the quantity neces- 
sary to maintain a large output unless they sold cheap and 
granted facilities to the foreigner.' " 

Export Price Reduction, in Foreign Countries. 

Judge E. H. Gary, Chairman of the Board „of Directors of 
the U. S. Steel Corporation, in a statement before the House 
Committee On Merchant Marine in April, 1906, said : "The 
Great Britain home price of rails is $31.50 per ton and the ex- 
port price of Great Britain is $25, f. o. b. their mills. In 
Germany the home price is $30 and the export price $24 ; in 
France the home price is $31 and the export price $25.50; in 
Austria the home price is $31 and the export price $25.50; 
in Belgium the home price is $30 and the export price $24 ; 
in the United States the home p*rice is $28 and the export price 
about $26.60. There is less margin in this country than anyr 
where else, and the* home prices abroad, you will observe, are 
invariably larger than our home prices. 

"Now, take structural material, including shapes, plates, bars, 
angles and tees. In Great Britain the home price is $1.60 
per 100 pounds and the export price $1.35 ; in Germany the home 
price is $1.50 and the export price $1.25 ; in France the home 
price is $1.65 and the export price $1.35; in Austria the home' 
price is $1.50 and the export price $1.35 ; in Belgium the home 
price is $1.55 and the export price $1.35 ; in the United States 
the home price is $1.60 and the export price $1.40. Our price 
of plates lately has slightly increased because of the demand. 
Our customers generally, however, are covered for the season at 
about $1.40. These figures are taken from authoritative sources 
and I think there is no doubt that they are reliable. They 
are the figures upon which we are doing our business right 
along every day." 

"If you did not have this avenue of export trade by which 
you could dispose of the surplus product which is in excess of 



TEE TARIFF AND EXPORT TRADE. Ill 

the domestic demand," said Representative Littlefield, "you wo a id 
either have to stop producing- and therefore lose the use of 
your mills and sustain a loss in that respect, or you would have 
to carry the surplus product on hand until the demand was 
created for it elsewhere? 

"Yes; but I do not think it would be practicable to manufac- 
ture and carry the surplus ; it runs into money so fast. I think fire 
would have to shut down our mills, and you know what that 
means in the disorganization of forces. So it really comes to 
this: That we would be obliged to increase the cost of maiiu- 
fucture if we could not run at full capacity. That would lie 
the inevitable result." 

English Attitude Towards Trusts. 

The United States Industrial Commission made a thorough 
investigation of trusts and trust operations in foreign countries 
as well as in the ^Jnited States in 1900, sending an expert (Prof. 
J. W. Jenks, of Cornell University) to the principal European 
countries and giving the subject much careful attention and 
study. The report stated that "there is a strong tendency to- 
ward the formation of industrial combinations everywhere in 
Europe," and of the situation in England says : "There were in 
earlier days very many local combinations to keep up prices, 
and in some cases these rings have proved very successful: With- 
in the last three years a very active movement toward the con- 
centration of industry into large single corporations, quite after 
the form that has been common in the United States, may be 
observed. Nearly all the feeling that one notes in England on 
this subject has reference to the later corporations formed by 
the buying up of many different establishments in the same line 
of business — corporations that through combination have suc- 
ceeded in acquiring in many particulars a good degree of monop- 
olistic control. * * * Industrial combinations in Europe 
do not seem to have awakened the hostility in any countrv tu >.c 
is met with in the United States. In England one finds in 
the papers a little expression of fear of the newer large cor- 
porations. The Government has taken no action whatever re- 
garding them further than to pass, August 8, 1900, an amend- 
ment to the Companies Act, which provides for greater publicity 
regarding the promotion and the annual business of corpora- 
tions than before. * * * There is, relatively speaking, little 
objection to combinations in Europe, and in some cases the 
governments and people seem to believe that they are needed to 
meet modern industrial conditions. They do believe that they 
should be carefully supervised by the Government and, if nec- 
essary, controlled. * * * The great degree of publicity in the 
organization of corporations has largely prevented these evils 
arising from stock watering, and has evidently had much effect 
in keeping prices steady and reasonable and in keeping wa;:es 
steady and just. There seems to be no inclination toward the 
passage of laws that shall attempt tc kill the combinations. 
This is believed to be impossible and unwise. Laws should at- 
tempt only to control, and that, apparently, chiefly through 
publicity, though the governments may be given restrictive, 
power in exceptional cases." 

Effect of Protection on Export Trade. 

One of the assertions made and offered as an argument 
against protection is that high tariffs established by a countrv 
lead other countries to discriminate against the products of that 
protection country and exclude them from their markets, either 
by adverse legislation or otherwise. Let us see about this.; "The 
proof of the pudding is in the eating." The proof of the ell'oet 
of protective tariffs upon the export trade of the count lies 
having such protection is found in the measure of the actual 
growth of their exports as compared with the growth of coun- 
tries not having- a protective tariff and offering' in the world's 
markets the same class of goods as those offered by the protec- 
tion country. The United States Uureau of Statistics has re- 
cently published a Statistical Abstract of the World, which 



112 THE TARIFF AND EXPORT TRADE. 

gives the exports of domestic products by each of the principal 
countries of the world during- a long term of years. It is easy, 
then, to compare the growth in exports by the countries having 
a protective tariff with that of the single remaining nonprotec- 
ted country — the United Kingdom. The two most strongly 
marked examples of protective tariff countries are Germany and 
the United States, and the chief free-trade country of the world 
is the United Kingdom. These three countries are also especially 
suitable for contrast in the effects of their respective tariff 
policies upon their export trade by reason of the fact that they 
are the chief competitors for the great markets of the world 
and the only countries of the world whose annual exports reach 
or pass the billion dollar line, each of these countries exporting 
annually more than one billion dollars' worth of merchandise, 
while no other country of the world has ever exported so much 
as one billion dollars' value of domestic products in a single 
year. Let us see, then, what the effect of protection has been 
upon sales abroad by the United States and Germany, the world's 
most conspicuous examples of protective-tariff countries, as com- 
pared with the effect of free trade upon exports from the 
United Kingdom, the world's most marked example of low- 
tariff countries. The Statistical Abstract, above referred to, 
compiled from the official figures of the countries in question 
and issued by the Bureau of Statistics, shows that the exports 
of domestic products from free-trade United Kingdom grew 
from 1,085 million dollars in 1880 to 1,828 millions in 1906, 
an increase of less than 70 per cent; while those from protec- 
tion Germany grew from 688 millions in 1880 to 1,364 millions 
in 1905, an increase of over 100 per cent ; and those from protec- 
tion United States grew from 824 millions in 1880 to 1,854 mil- 
lions in 1907, an increase of 125 per cent. This certainly does 
not justify the assertion that other countries discriminate 
against and reject the merchandise of the country having pro- 
tective tariff laws and favor that of countries having free trade. 
While of course the general law of supply and demand in- 
fluences in a greater or less degree the volume of exports from 
year to year, the experiences above cited are sufficient to clearly 
indicate that the existence of a protective duty on imports does 
not result in an exclusion of our exports by other countries, 
since our exports have increased enormously during the opera- 
tion of protective tariff laws. 

Exports Under tlie United States Tariff. 

Another and even more striking illustration of the growth 
of exports under low tariff and protection, respectively, is found 
in a study of the detailed history of the tariffs and export trade 
of the United States. The only protective tariffs which the 
United States had prior to 1861 operated during the years 1813- 
16, 1825-33, and 1843-46, an aggregate of 17 years prior to 1861. 
Since that time protective tariffs have covered the years 1861-94 
and 1897-1908, making the total of the period covered by protec- 
tive tariffs 62 years, against 57 years of love tariff, counting the 
formative period from 1790 to 1812 as low tariff. Thus the his- 
tory of the United States under the Constitution is about evenly 
divided between protective tariff and low tariff. Now, let us see 
the result in its effect upon our exports during those two great 
periods of protection and low tariff — 62 years of protection and 
57 years of low tariff. During the 57 years of low tariff the im- 
ports exceeded the exports by $514,954,931; during the 62 years 
of protective tariffs the exports exceeded the imports by over 
5 billion dollars. These statements are compiled from official 
reports of the United States Bureau of Statistics and their ac- 
curacy can not be called into question. Docs this look as though 
protective tariffs had the effect of reducing or destroying the 
export trade? 

Is There Danger of Enropean Combinations Against the 
United States on Acconnt of Our Tariff? 

Statements have been made from time to time that Enropean 
countries were likely, by reason of the high protective tariff in 
the United States, to enter into an agreement for the exclusion 



TEE TARIFF AND EXPORT TRADE. 113 

of our products from their markets. This assertion has been 
made over and over again for years, but more especially in com- 
paratively recent years. But such action seems highly improbable. 
for the following reasons : 1. The countries in which these threats 
of retaliation are most frequently heard are themselves, in all 
cases except the United Kingdom, protective-tariff countries, 
and it is unlikely that they would seriously and through official 
action complain of a protective tariff established in any other 
country. 2. The European countries can not afford to exclude 
our staple products, which are required in such large quantities 
by their people and which would "advance in price in their mar- 
kets if the supply from the world's largest producer were cut off. 
3. The exclusion of these necessary products from the United 
States would necessitate their importation from other countries, 
and by reducing the supplies in these other countries would 
make markets for our products in those countries drawn upon 
or in other countries from which they had been accustomed to 
draw their supplies. 4. Experiments of this kind for the ex- 
clusion of our meats from certain European countries have not 
resulted in a reduction of our total exports of meats and other 
provisions. 5. The countries which have complained most bitter- 
ly of the tariff of the United States have steadily and rapidly 
increased their importations of our products meantime. 6. 
During the very period in which the talk of exclusion from 
European countries of American manufactures have been made, 
our exports of manufactures to those countries have most rapidly 
increased. 

As to the first proposition, it is from the European countries 
that the threats of retaliation against the protective-tariff laws 
of the United States are most frequently heard. Yet all of the 
leading countries of Europe, with the exception of the United 
Kingdom, have within comparatively recent years adopted pro- 
tective-tariff systems and in most cases are now increasing or 
proposing to increase their rates of duty for the avowed pur- 
pose of making their tariffs more thoroughly protective. In the 
case of the United Kingdom, the only European country of im- 
portance not having a protective tariff, the adoption of a pro- 
tective system is being strongly urged. It seems highly improb- 
able that a country officially adopting a tariff system with the 
explicit purpose of protecting its own industries would' complain 
of like action on the part of any other country, even if the rates 
which that country imposes were higher than those which it 
imposes. 

Retaliation a Boomerang-. 

The European countries in question are large consumers of 
the great products of the United States — cotton, wheat, corn, 
meats, and other forms of provisions — as well as of manufac- 
tures. The United States is the world's largest producer of every 
one of these articles. She produces three-fourths of the cotton 
of the world ; three-fourths of its corn ; three-fifths of the wheat 
entering the European markets from extra-European countries ; 
and two-fifths of the meats which enter into international com- 
merce. The European countries, with possibly one or two ex- 
ceptions, do not produce a sufficient supply of these articles for 
their respective home markets. They must buy them in large 
quantities from some other part of the world. One important 
effect of excluding from their markets the products of the 
world's principal source of these various articles must be to in- 
crease in their home markets the prices of those articles. If 
through concerted action by these countries three-fourths of the 
world's supply of cotton (produced in the United States) were 
excluded from their markets naturally the price for the remain- 
ing one-fourth of the world's cotton, wherever produced, would 
advance greatly, and this principle would apply in the exclusion 
of any of the great products of which the United States exports 
a sufficiently large percentage to make absence of its product 
a factor in determining prices. Imagine the effect upon the 
price of wheat if three-fifths of the extra-European supply for 
European markets were destroyed in a single hour or day. Im- 
agine the effect upon prices of meats if 40 per cent of the 
world's available supply for the international trade were wiped 



114 TEE TARIFF AND EXPORT TRADE. 

out of existence. Note the effect upon the price of cotton due 
to a small shortage in the crop of the United States, and con- 
sider what would be the effect if all of the cotton supply of the 
United States — three-fourths of that which the world produces — 
were shut out of the markets demanding that cotton. 

Even if certain countries were to exclude the great products 
of the United States from their markets they would be com- 
pelled to draw their supply from some other country or coun- 
tries, and the products of the United Slates would find her 
markets in those countries thus drawn upon or in the countries 
to which they had formerly furnished their surplus. The world's 
production of the requirements of man — cotton, corn, wheat, 
provisions — is no more than the quantity required by the var.<; .{£ 
parts of the world which are now brought into such close com- 
mercial relationship by reason of cheap transportation, and if 
through the exclusion of our products from certain countries 
the products of other countries were drawn upon to supply those 
markets our products would in turn find a sale in the other parts 
of the world thus affected by that change in supply. These 
great requirements of man for food and clothing, demanded as 
they are in every part of the world, and easily transported to 
any given spot, like water, seek their level, and the exclusion of 
our products from one country or group of countries would 
simply result in their finding markets in the spot from which 
those consuming countries might draw their supply. 

Results of Experiments in Retaliation. 

Certain experiments in the exclusion or attempt to exclude 
American products have been made in European countries during 
the past twenty years, and the effect of those experiments upon 
our sales of the articles in question is worth noting. Beginning 
agout twenty years ago certain of the European countries began 
the exclusion of certain classes of meats from the United States, 
charging that they were dangerous to public health by reason of 
the presence of trichina? in hogs, Texas fever and other a-. <* 
in cattle, and upon other but somewhat similar grounds. These 
rulings or legislation against American meats extended from 
country to country upon various pretexts during a setuV ■; u| 
years down to a very recent date, proving in each case more or 
less a barrier against the meat products of the Unite 1 States. 
They resulted in some cases in more stringent export regulations 
by the United States, and in some cases in a modification of the 
legislation or regulations in the country of importation, and 
the net result has been a steady growth in the exportation of 
provisions from the United States during the very period in ques- 
tion. The total value of provisions and animals for food ex- 
ported from the United States in 1880, the approximate date at 
which this adverse movement against provisions from the United 
States began, was 130 million dollars, and 237 millions in 1907, 
a growth of more than 100 million dollars in exports of pro- 
visions and live animals for food purposes during the very period 
in question, and a very large proportion of this growth was in 
exports of those articles to European countries. 

Another evidence of the indisposition of other countries to 
attempt to exclude the required products of the United States 
from their markets is found in the fact that although a dozen 
of the great countries of the world simultaneously protested 
against the Dingley tariff act, no one of those countries ex- 
cluded any of the products of the United States following the 
enactment of that law or even reduced by a single dollar the 
value of their purchases from this country. These protests, 
while not a joint action, and while relating in some cases to dif- 
ferent features of the act from those complained of by other 
protesting countries, were practically simultaneous, and as the 
passage of the act without recognition of their protest was a 
simultaneous rejection by the United States of those protests, 
the occurrence offered to them a special and unique opportunity 
for combined action in excluding our products from their mar- 
kets. Yet not a single one of those countries took such action, 
and in no case did they reduce their purchases from the United 
States. On the contrary, our exports to every one of the 12 



:| 



THE TARIFF— AGREEMENT WITH GERMANY. 115 



countries have increased. Our exports to the 12 countries which 
protested against the act in question were in 1896 $618,688,000, 
and in 1907 $1,220,000,000, an increase of about 100 per cent as 
compared with 1896, the year prior to that in which these pro- 
tests were made. (See table of countries protesting- against 
Ding-ley law, and exports to them.) 

Besides, the complete power of the United States to pro- 
tect itself against retaliation must not be overlooked. The only 
countries from which there could be any possibility of danger 
are the leading industrial and commercial nations of Europe, 
Their policy is protective, so is ours. But if they are compelled 
to buy largely of our products from necessity, we buy largely of 
theirs from choice. We are among* their best customers. What 
they buy of us are necessaries ; what we buy of them are chieliy 
luxuries. If they were to proscribe our products we could more 
easily proscribe theirs. So long as we maintain the protective 
policy we can defend ourselves ; the more we advance towards 
free trade the fewer weapons of defense we hold. 

Thus, both the logic of the situation and our actual experi- 
ence with adverse legislation and threats of such legislation fail 
to justify the assertion that our products of any class are being 
excluded or are likely to be excluded from the markets of other 
countries by reason of our protective tariff. 

Our Exports of Manufactures Gain More Rapidly tlian those 
of Natural Products. 

To the argument that the world must have our natural pro- 
ducts and hence our freedom from danger of adverse combina- 
tions against them an answer might be made that our chief 
concern is in the exports of manufactures. True, but has the 
existence of our protective tariff affected adversely our exports 
of manufactures? The exports of manufactures in the fiscal 
year 1897, the last year under the low tariff Wilson law, were 
311 million dollars ; in 1907 they were 740 million dollars, an 
increase of about 150 per cent. During that same period the 
exports of all articles other than manufactures increased from 
721 millions in 1897 to 1,114 millions in 1907, an increase of 
about 50 per cent. Thus our exports of manufactures have in- 
creased about 150 per cent and those of all other articles about 
50 per cent during the existence of the highly protective Dingl'ey 
law. 

Protective Tariff as a Revenue Producer. 

Ill the matter of revenue the contrast between low and pro- 
tective tariff is equally striking. In the 57 years of low tariff 
no less than 22 of the total showed an excess of expenditures 
over receipts by the Government ; while in the 62 years of pro- 
tective tariffs 46 of the total showed an excess of receipts over 
expenditures. Of the 16 years under protective tariffs in which 
the expenditures exceeded the revenues no less than nine were 
war periods, when, necessarily, expenditures exceeded receipts 
from ordinary sources, -while in only two of the years in which 
deficits occurred under low tariffs could that deficiency be 
charged to war conditions. The war of 1812-14, the civil war, 
and the war with Spain all occurred during protective-tariff 
periods ; while the war with Mexico occurred during a low- 
tariff period. (See statement and table on this subject on an- 
other page of this volume.) 



TARIFF AGREEMENT WITH GERMANY, JUL.Y 1, 1907. 

In 1906, a new tariff went into operation in the Gorman 
Empire, constructed in accordance with the modern European 
method of tariff making. It consists of a so-called "general" or 
"autonomous" tariff, which is applied to imports from countries 
which have no commercial treaties with Germany, and a "con- 
ventional" tariff, comprising the reduced tariff rates which are 
granted cu nations with whom such treaties are negotiated. The 
rates of vluty imposed by the general tariff are much higher — 

10 



116 THE TARIFF— AGREEMENT WITS GERMANY. 

in many cases more than double — the "conventional" duties. 
In accordance with the terms of this tariff, Germany has nego- 
tiated reciprocity treaties with some ten European nations, and 
it is her intention to negotiate similar treaties with every nation 
in the world with which she has a commerce of any importance. 

By the terms of her tariff act, the higher rates of duties 
would have automatically applied to all dutiable goods imported 
from the United States into Germany after March 1, 1906. The 
attention of the United States Government was drawn to this 
fact by a diplomatic note from the German ambassador, dated 
November 4, 1905, accompanied by a friendly expression of the 
desire of the German government to enter into a commercial 
arrangement with the United States under which the same 
treatment would be accorded to her exports to Germany as to 
those from other countries with which she had commercial 
treaties. As a result of the correspondence that ensued, a "Pro- 
visorium" was agreed to, and subsequently ratified by the German 
Reichstag, by the terms of which the application of the higher 
German tariff rates to American goods was postponed for one 
year and four months, pending the formal negotiation of a 
commercial agreement between the two countries. • 

To arrange the details of such an agreement, the President 
sent a tariff commission to Germany in November, 1906, con- 
sisting of S. N. D. North, Director of the Census; James L. 
Gerry, Chief of the Customs Division of the Treasury Depart- 
ment, and N. I. Stone, tariff expert of the Department of 
Commerce and Labor. This commission spent two months in 
Berlin in daily conference with a commission of twelve experts 
designated by the various departments of the German govern- 
ment. It brought back two tentative plans for the adjustment of 
the tariff differences between the two nations. One was a com- 
plete reciprocity treaty, framed in accordance with the terms 
of the German treaties with other countries. The alternative 
proposition, which was temporary in character, was signed by 
the President, June 1, 1907, and was subsequently ratified by 
the German Reichstag. Under its terms it remains in effect 
from July 1, 1907, until June 30, 1908, and thereafter for six 
months from the date upon which either nation shall have given 
notice of its intention to terminate the agreement. In other 
words, the agreement may continue indefinitely, while it is at 
the same time within the power of either nation, in the event 
that it does not operate to its satisfaction, to terminate it upon 
six months' notice. 

Under the agreement about 95 per cent of the United States 
exports to Germany retain the benefit of the minimum tariff 
thereon. The articles affected include cereals, fruits, and 
other farm products, meats, lumber, boots and shoes, all 
sorts of manufactures of leather, paper, glass, iron and steel, 
all forms of electrical appliances, agricultural implements, ma- 
chinery, arms, watches, etc. 

It remains to summarize the concessions which the United 
States has granted in return. The agreement was negotiated under 
the provision of section 3 of the tariff act of 1897. Under a prior 
agreement with Germany, that country received all the con- 
cessions in the way of reduced duties permitted under this 
section, except the remission of 20 per cent of the duty on 
champagne. Champagne is a produot of France, and not to any 
extent of Germany. The German manufacture of sparkling wines 
is insignificant and the concession to Germany, permissible un- 
der this item, only served the purpose of the basis upon which 
to hang certain modifications in the Treasury and Consular 
Regulations for the administration of our customs laws, as fol- 
lows : That in all reappraisement cases the hearings shall be 
open unless the appraisers shall certify to the Secretary of the 
Treasury that the public interests will suffer thereby ; that the 
"market value" of imported goods, whenever such goods are 
made and sold wholly for export, so that there can exist no 
domestic value established by sale, shall be the export price of 
the goods in question ; that certificates of invoices issued by the 
German chambers of commerce, which are conducted under the 
supervision of the German government, shall be accepted by 
our appraisers as "competent evidence" (not necessarily oon- 



I 



TEE TARIFF— STEEL RAILS. 



117 



lusive), and considered in connection with all other evidence, 
whenever the appraisement of goods imported from Germany is 
under consideration ; that all agents of the United States gov- 
ernment sent to Germany in connection with the administration 
of the customs tariff shall be duly accredited to the German 
government, and certain other minor modifications in the con- 
sular regulations, the effect of which is to save exporters to the 
United States from personal appearance, duplicate invoices, etc. 



Production and Prices of Bessemer Steel Rails in the United 

States. 

The following table gives the annual production in gross tons 
of Bessemer steel rails in the United States from 1867 to 1907, 
together with their average annual price at the works in Penn- 
sylvania, and the rates of duty imposed by our Government 'at 
various periods on foreign steel rails. Prices are given in cur- 
rency. 



[Note the pyramid of production, the inverted pyramid of prices, 
reduction in the duty.] 



and the 



Years. 



1867 _. 



1870 
1871 
1872 
1873 
1874. 
18W. 
1876 
1877 
1878. 
1879 
1880 
1881, 



1884 



1887 



1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905 . 
1906 
1907. 



Gross tons Price. 



2,277 


$166.00 


6,451 


158.46 


8,616 


132.19 


30,357 


106.79 


34,152 


102.52 


83,991 


111.94 


115,192 


120.58 


129,414 


94.28 


259,699 


68.75 


368,269 


59.25 


385,865 


45.58 


491,427 


42.21 


610,682 


48.21 


852,196 


67.52 


1,187,770 


61.08 


1,284,067 


48.50 


1,148,709 


37.7^ 


996,983 


30.75 


959,471 


28.52 


1,574,703 


34.52 


2.101,904 


37.08 


1,386,277 


29.83 


1,510,057 


29.25 


1,867,837 


31.78 


1,293,058 


29.92 


1,537,588 


30.00 


1,129,400 


28.12 


1,016,013 


24.00 


1,299,628 


24.33 


1,116,958 


28.00 


1,644,520 


18.75 


1,976,702 


17.62 


2,270,585 


28.12 


2,383,654 


32.29 


2,870,816 


27.33 


2,935,392 


28.00 


2,946,756 


28.00 


2,137,957 


28.00 


3,192,347 


28.00 


3,791,459 


28.00 


3,380.025 


28.00 



Duty. 



45 per cent ad valorem to January 
1, 1871. 



$28.00 per ton from January l, 

1871, to August 1. 1872; $25.20 
from August 1. 1872. to March 3, 
1875; $28.00 from March 3. 1875, 
to July 1. 1883. 



$17.00 per ton from July 1, 1883. 
October 6, 1890. 



$13.44 per ton from October 6. 1890, 
to August 28, 1894. 



$7.84 per ton from August 28, 1894, 
to date. 



The question of tariff revision stands wholly apart from 
the question of dealing 1 with the trusts.— President Roose- 
velt at Minneapolis, April 4, 1903. 

No change in tariff duties can have any substantial effect 
in solving the so-calld trust problem.— President Roosevelt 
at Minneapolis, April 4, 1003. 

Anything that makes capital idle, or which reduces or 
destroys it, must reduce both wages and the opportunity 
to earn -wages. It only requires the effects of a panic through 
-which we are passing, or through which -we passed in 
1893 or 1873, to show how closely united in a common in- 
terest we all are in modern society. "We are in the same 
boat, and financial and business storms -which alfeet one 
are certain to affect all others.— Hon. Wm. H. Taft, before 
the Cooper Union, New York City. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: ARYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



113 



THE TARIFF— EFFECT ON EXPORT TRADE. 



Selling price of iron ore and price of pig iron at date of buying 
movement. 189U to 1908. 

[Furnished by Mr. George Smart, Editor of the Iron Trade Review.] 





Date of buying 

movement. 


Season iron ore prices. 


Iron prices, 
Valley. 


feeason. 


MS 

P H 


3* 


Us 

o w 


IS* 


a 

i 


d 
s 

a 


1894 

1895 

1896 


March 1, 1894 

April 1, 1895 

May 1, 1896 


Dollars* 
2.75 
2.90 
4.00 
2.60 
2.75 
3.00 
5.50 
4.25 
4.25 
4.50 
3.25 
3.75 
4.25 
5.00 
4.50 


Dollars* 

2.35 

2.15 

3.50 

2.25 

2.25 

2.40 

4.50 

3.25 

3.25 

4.00 

3.00 

3.50 

4.00 

4.75 
.4.25 


Dollars 
2.50 
2.25 
2.70 
2.15 
1.85 
2.15 
4.25 
3.00 
3.25 
8.60 
2.75 
3.20 
3.70 
4.20 
3.70 


Dollars 

"Too" 

2.25 
1.90 
1.75 
2.00 
4.00 
2.75 
2.75 
8.20 
2.50 
3.00 
3.50 
4.00 
3.50 


Dollars 

9.05 

9.40 
12.40 

8.35 

9.55 
10.30 
24.15 
16.15 
15.90 
21.50 
13.35 
15.50 
17.25 
21.50 
16.00 


Dollars 
9.65 
9.40 
11 15 


| | i | | | | i | | j | 


May 20, 1897 

March 20, 1898 

February 1, 1899___ 
December 15, 1899_. 

April 15, 1901 

February 1, 1902 

March 20, 1903 

April 15, 1904 

February 1, 1905 

December 5, 1905 

November 10, 1906__ 
June 18, 1908 


8.40 
9.80 
9.75 
22.15 
14.40 
15.90 
21.65 
13.15 
16.00 
17.25 
21.50 
15. 0D 



Growth of Imports and Exports of Manufactures in the 
United Kingdom and United States, respectively, from 
1870 to 1907. 

This table, which shows the value of manufactures imported 
into and exported from the United States and United Kingdom, 
respectively, at quinquennial periods from 1870 to 1907, is es- 
pecially interesting in view of the fact that it compares the trade 
in manufactures of the United States under protection with 
that of the United Kingdom under free trade. It will be noted 
that the increase in imports of manufactures into the United 
Kingdom has been more rapid than that into the United States 
and that the percentage of growth in exportations of manu- 
factures from the United States has been much greater than 
from the United Kingdom. The United Kingdom's importations 
of manufactures grew from $277,000,000 in 1870 to $762,000,000 
in 1907, an increase of considerably more than 200 per cent, 
while those of the United States grew during the same period 
from $229,000,000 to $638,000,000, an increase of considerably less 
than 200 per cent. In the exports of manufactures the contrast 
is much more strongly marked ; the exports of manufactures 
from the United Kingdom were $888,000,000 in 1870 and $1,690.- 
000,000 in 1907, a gain of a little less than 100 per cent, while 
those from the United States grew from $70,000,000 in 1870 to 
$740,000,000 in 1907. an increase of nearly 1,000 per cent. 

This seems to disprove the frequent assertion of the Demo- 
crats that a protective tariff at home destroys our chances for 
selling abroad. 



Exports of Mannfactnres and Total Exports of Domestic Mer- 
chandise from the United States, United Kingdom, and 
Germany, from 1875 to 1907. 

The table which follows shows the imports and exports into 
and from free trade United Kingdom, and protective Germany, 
and the United States, respectively, from 1875 to 1907 ; also the 
exports of manufactures from each of those countries during 
that period. It is interesting to note that the total exports of 
the United States have grown more rapidly than those of either 
Germany or the United Kingdom, and the growth in the exports 
of manufactures has been much more rapid than in either of 
those countries. Manufactures exported from the United King- 
dom amounted to $979,000,000 in 1875 and in 1907 to 
$1,690,000,000, having thus increased less than 75 per cent, dur-, 



ins 



TEE TARIFF AND EXPORT TRADE. 



119 



that time. Those from Germany grew from $460,000,000 in 
1880 (no data for 1875) to $1,047,000,000 in 1906, an increase of 
about 130 per cent., while those from the United States grew 
from $102,000,030 in 1875 to $740,000,000 in 1907, an increase of 
over 625 per cent. This seems to pretty thoroughly dispose of 
the statement that protection injures the export trade of the 
protected country. 



© 

to • 

•IS 

II 



$S 



If 

to s 

§ °° 

© to 

it 

© ^ 



*2 

it 

•g to 



L) 


o 
3i 






•e 


5 










B 


© 




CO 






to 


w 






53 


© 


£j 


^ 

» 




j. 


t) 


© 


to 


s 






§ 


to 


f2 


iS 






to 


to 


pC: 


R 


*a 


© 


**-. 


'C 


to 




to 




to 




X. 




to 




















R 




o 




to 





"33 

W 



-3 « 

QJ O 

"a W 

H 



0D 



SB 



w< 



a; 



3D 



a &*> 

u 



■ OOo< 



(M00©(M00!000ifl«)O©C0C0 



O^HH, 



•MHOO 
l <M H CO -* 

uneoN 



:888888: 

1 OO O O O o ' 



I O? CJ IC 5D !>; < 
CO CO 00 rH rH Hj O 



-*SlOIOf-«Ot~fiCOCsO 



" J tOHMt>OMHfflNO)HO 

tJcoooiflifioOMOHWinosi 

CSoOtDCOOGO'KSrHCOGOCOCOO' 



00 O CO 00 M W O N ( 



leooawoHi 



o m ■* <n en b- < 

rH CO Ol 00 in m < 



'(NCOt--*T(i«HN05t. 

W co O O inwirHHCo 



Q -* co x> co t- co ■ 



IOOMOJNI 



88: 

.OO' 



>oo 
> o o 
>o o 



^MOriNOOlPCOMNHOSW 
^inCioHtOOOOOnOOm^O 
SOU5CN!010(COMOH'*00 

°ffiXOOOOOOllOHH^<OHn 
QlOtO«DNt>OOHH<MMlPO 



888: 

ooo< 



' o o o 



! NH"«(N«HOffiMroMMNin 



nN^ NWOMMOllOMirN' 
"oOCOMOOOH!DNHtDONl 
flOC)ONH-*MM'*-*!0(X)< 



'OOOOOOOOOOQ< 
>OOOQOOOQOOO< 
>00©00000000< 



m m i^ o o i— i <m 



'Oiowaoi 



i co n o it m -t 



OlOtOlONNOOOOaOOHl 



OOOOQOOOOQOOO 

6ooo55o555ooo 
. o © o o o ©_© o © o o o o 

£ OinVw» ( 0-""!»o'oQON 

£Ci-rl?D<>lrHrHlOI~002535rH00 

o«o o ©o <m o'o >* -^ o"oi «S 

flOOCKOoSOiCOlNM'^lOfflftO 



;S8: 

>© o< 



gOHt000lM-f-t!0-*CC»0!C0 

* n in h © e-i •« <o h ifMM _- / » — . 

SK(NCOC100inN-tO(0<S(M(N 

i-Tm t~ i^ m o rH <m i-ToToo co 



O H O 6 "•» (N ' ■ ■ 

floooooooioininooNfflH 

rH of rH WNININN of 04 of of CO 



inoinoinpHN 
r^ooooooooo 
Of) 00 Ofj 00 C/0 C5 o o 



! ! 



I I 



CI § d? ci S 



120 TEE TARIFF. 

Importation of manufactures into United Kingdom and United 

States, respectively, at quinquennial years, 1870 to 1907. 

[From official statistics of the respective governments.] 

Into the United Into the United 
Kingdom. States. 

Year. Millions dollars. Millions dollars. 

1870 277 229 

1875 354 241 

1880 405 307 

1885 406 261 

1890 478 348 

1895 483 296 

1900 630 337 

1905 707 430 

1907 762 638 

Exportation of manufactures from United Kingdom and United 

States, respectively, at quinquennial years, 1870 to 1907. 

[From official statistics of the respective governments.] 

From the United From the United 

Kingdom. States. 

Year. Millions dollars. Millions dollars. 

1870 888 70 

1875.. 979 102 

1880 965 122 

1885 915 150 

1890 1,112 179 

1895 941 205 

1900 1,126 485 

1905 1,329 611 

1907 1.690 740 



Growth, of Exports to the Countries which Protested Against 
tlie Dingley Tariff Bill. 

This table gives a full list of the countries which protested 
against the Dingley tariff bill during its consideration, and 
the value of merchandise exported thereto in the year prior to 
the consideration of that measure and of their protest, and 
compares with those figures the exports to those same countries 
in 1898 (the year immediately following the enactment of 
the tariff law) and in 1907, the latest year for which figures 
are now available. It will be seen that despite the protests 
against the Dingley bill and, in some cases, implied threats of 
exclusion of American products in case 1#ie bill should become 
a ]aw, the exports to those countries have in every case greatly 
increased, the total exports to those countries in 1907 being 
practically double those of 1896, the year prior to the enact- 
ment of the law. 

Exports from the United States to the countries which protested 
against the Dingley tariff bill, showing increase m exports 
after enactment of the law. 



Countries. 



United Kingdom 

Germany 

Netherlands 

Belgium 

Italy 

Japan 

Denmark 

China 

Argentina 

Austria-Hungary 

Groove. 

Switzerland 

Total to countries 



Year ending June 80— 



$405,741,339 

97,897,197 

39,022,899 

27,070,625 

19,143,606 

7,689,685 

6,557,448 

6,921,933 

5,979,046 

2,439,651 

191,046 

32,954 



$618,687,429 



1898. 



$540 
155 
64 
47 
23 
20 
12 
9 



,940,605 
,039,972 
,274,524 
,619,201 
,290,858 
,385,041 
,697,421 
,992,894 
,429,070 
,697,912 
127,559 
263,970 



1907. 



$607,783,255 
256,595,663 
104,507,716 
51,493,044 
61,746,965 
38,770,027 
23,384,989 
25,704,532 
32,163,336 
15,136,185 
1,634,431 
612,579 



$886,759,027 $1,219,532,722 






TEE TARIFF— PRINCIPAL SYSTEMS OF THE WORLD. 121 



MODERN TARIFF SYSTEMS OF THE WORLD. 



Three types of tariff systems have been adopted by leading 
nations during the more recent period. The earliest type is the 
single, or "autonomous," tariff. It is made up of schedules or 
rates which apply uniformly to imports from all countries, no 
favor or discrimination being shown to any one of them. It is 
also called "autonomous" because it is the result of domestic 
legislation only, with regard primarily to the wants and inter- 
ests of national industry. While the character of such autono- 
mous legislation is in most cases protective, this is not an ab- 
solutely essential element of the autonomous tariff. Cases are 
possible where a tariff of this character may be constructed 
along free trade lines. 

The only example of an autonomous, non-protectionist tariff 
is presented by the British tariff, the duties of which are purely 
fiscal in character and therefore not adapted for change or re- 
duction by tariff agreements. » 

The tariff systems adopted by most countries of the European 
continent differ from the British system, each tariff having a 
double column of rates. The rates in the second columns are of 
course never higher than in the first column, and as a rule — 
lower. 

In case this double set of rates is the result of domestic 
legislation and the mere application of these rates to the vari- 
ous countries the result of international bargaining, the tariff 
is designated as a "maximum and minimum" tariff. Examples 
of this system are presented by the tariffs of . France, Spain, 
and Norway, as well as by the recent tariff of Canada. When- 
ever this second set of rates is primarily not the result of do- 
mestic legislation but of international bargaining, such a tariff 
is spoken of as a "general and conventional" tariff. Typical 
representatives of the conventional system are the German, 
Austro-Hungarian, Italian, Swiss, and the most .recent Eussian 
tariffs. 

The Maximum and Minimum System Described. 

As can be seen from the short definitions just given, both the 
"maximum and minimum" and the "general and conventional" 
tariff systems presuppose international bargaining and agree- 
ments. The difference between the two systems is, that in the 
case of the maximum and minimum tariff systems the legislative 
body of the country from the outset fixes the limits within which 
concessions to foreign countries can be made by the Executive. 
After this type of tariff has been adopted by the national legis- 
lature the domestic producer is assured of a minimum degree of 
protection which cannot be reduced by the Executive through 
negotiations with foreign countries. Furthermore, the legis- 
lature may restrict the number of articles to which two sets 
of rates are applicable. For example, the French tariff provides 
only for a single rate of duties for the principal breadstuffs. 

The Conventional System Described. 

In the case of the general and conventional tariff systems the 
legislature fixes from the outset one set of duties only, which 
is sometimes called the autonomous set, being the result of au- 
tonomous national legislation. The process by which the second 
set of duties is attained is normally as follows : Country A and 
Country B, both having passed the autonomous tariffs, open 
negotiations through specially appointed agents with the view 
of obtaining reciprocal concessions from the rates found in the 
respective autonomous tariffs. Assuming that Country A is an 
exporter of agricultural and mining products, its negotiators 
Daturally will attempt to obtain reductions of duty on the above 
products without paying any attention to the autonomous rates 



122 THE TARIFF— PRINCIPAL SYSTEMS OF THE WORLD. 

found in the tariff of "Country A" on articles in the exportation 
of which their country is not interested. In case Country B is 
an exporter of textiles and chemicals the negotiators represent- 
ing Country B will be interested in having the rates on these 
products only reduced by Country A. If the concessions granted 
by one side are found to be equivalent to those granted by the 
other, new sets of rates will be constructed which, as a rule, 
will be lower in either tariff than the rates on the same articles 
adopted originally by the legislatures of the two countries. 
Sometimes the result of such negotiations is that some conven- 
tional rate adopted does not differ from the original autonomous 
rate, but is merely "fixed" or "bound" for the period of time 
during which the tariff agreement is to last. The conventional 
tariff schedule which results from such negotiations is therefore 
composed of reduced and "bound" or "fixed" rates. The gen- 
eral schedule may be changed at any time without breaking any 
of the conditions of the treaty; the conventional rates must re- 
main in force during the lifetime of the treaty and can be 
chang'ed by the consent of both parties only. 

Such negotiations usually are carried on with more than one 
country and result in reductions or binding of rates on various 
groups of articles in the exportation of which the particular 
countries are interested. In case a country does not care to 
enter into such special tariff negotiations, relying merely on the 
most favored nation clause in its existing treaties with the re- 
spective country, all the conventional rates accorded to other 
countries as the result of special negotiations are granted to 
that country as a matter of course. For example, the United 
Kingdom, by reason of its most favored nation clause, obtained 
without special negotiation all the conventional rates granted by 
Germany in 1905-1906 to Bussia, Austria-Hungary, Italy, Swit- 
zerland, Belgium, Servia, Boumania, Sweden,^ Bulgaria and 
Greece. Inasmuch as the greater part of the countries also con- 
cluded commercial agreements with each other and extended 
the concessions granted to any one of them to all others having 
most favored nation clauses in their treaties, it follows that all 
concessions granted originally only to one country in the cycle 
are applicable to importations from all other countries entitled 
to such concessions by reason of their most favored nation 
clause. It can be seen therefore that the application of the 
original general tariff adopted by the legislature is considerably 
modified by the conclusion of commercial treaties and that the 
conventional rates are the ones normally applied. These rates 
come into force by legislative enactment, each tariff conven- 
tion or treaty with its set of new conventional rates being sub- 
ject to sanction by the legislature. The conclusion of such 
tariff treaties on the part of the negotiators therefore presup- 
poses not only an expert knowledge of the export industries, 
for which concessions are obtained, but also of the limits of 
concessions from the rates of the general tariff which may be 
granted without endangering the adoption of the tariff treaty 
by the legislature of their own country. For it must be under- 
stood that the terms of the treaty cannot be modified by the 
legislature, which merely reserves in itself the right to adopt 
or reject the treaty as a whole. In the case of the maximum 
and minimum tariff, unless the right to grant all or certain mini- 
mum rates for equivalent concessions is sx^ecially conferred upon 
the Executive by the legislature, a similar legislative sanction 
is necessary, though from what has been said above, it is mani- 
fest that the scope and freedom of the negotiators is more lim- 
ited and restricted. 

Important Difference Between the Conventional and the 
Maximum and Minimum Systems. 

The most important difference between the two types of the 
double tariff system is that the maximum and minimum tariff 
leaves the Government free to change either the maximum or 
minimum rates whenever circumstances and changed industrial 
conditions make such action advisable. All that the Govern- 
ment binds itself to do with regard to the foreign country is 
to accord to it its minimum tariff. As the French negotiators 



PRINCIPAL TARIFF SYSTEMS OF THE WORLD. 123 

put it in their letter to the Canadian delegates during the ne- 
gotiations for the recent reciprocity treaty, "it is a principle in 
French customs legislation that the Administration cannot re- 
nounce its right to revise or modify the tariff." Under the sys- 
tem of conventional tariffs the contracting powers specify the 
exact rate of duty to be respectively applied to each other's prod- 
ucts, and while the general rates may be moved up or down 
during the lifetime of the treaty, the conventional rates can- 
not be raised during this period except by mutual consent. In 
order to insure stability of rates, tariff conventions, as a rule, 
are concluded for a certain number of years — not less than 
five, but usually for a longer period, ten or even twelve years. 
It is plain that either system has its advantages and disadvan- 
tages and no a priori judgment upon the respective merits of 
the two systems is possible. 

European Interpretation of the Most Favored Nation Clanse. 

Mention has been made of the "most favored nation clause," 
by reason of which countries obtain more favored treatment 
freely and as a matter of course without special negotiations 
or equivalents. Inasmuch as the European interpretation of this 
clause differs considerably from ours a few words of explana- 
tion would seem necessary. The American view or interpreta- 
tion of this clause is that every favor or concession granted by 
a treaty is to be compensated by a definite and positive con- 
cession of some sort in return, and that the American Govern- 
ment reserves to itself the right to judge in each particular 
case of the adequacy of the return favor or concession. In ox> 
position to this construction of the clause the one now accepted 
by European countries in their commercial relations is that all 
concessions and favors given to a third party shall be at once 
and without any special return extended to the other party to 
whom such treatment is guaranteed. The result is that a na- 
tion having been granted the most favored nation clause by its 
neighbor is assured that while this clause is in force it will not 
be treated less favorably than any other nation. In the first 
place, then, favors or concessions given to airy other country 
are at once and as a matter of course given to all other nations 
entitled to the most favored nation clause. And, second, these 
concessions- are given without any special compensation even 
though they were secured by the first country in return for 
specified and important concessions. 

Such an interpretation of the clause in connection with a 
special tariff agreement assures to the parties concerned the 
maximum possible benefits in the markets of the other con- 
tracting party. Either country when sufficiently interested has 
an opportunity of obtaining the greatest possible concessions for 
its own export industries by g-ranting through direct negotia- 
tions return concessions on its own general rates. Moreover, it 
is assured that subsequent tariff treaties with other countries 
will not make less favorable its position in its neighbor's market, 
inasmuch as all such subsequent concessions and favors granted 
to a third party will, as a matter of course, and without further 
concessions on its own part, be extended to it by reason of its 
most favored nation clause. 

It is therefore seen that the conventional tariff system is 
closely interwoven with the most favored nation clause. The 
United Kingdom, having a duty on but few articles and thus 
no concessions to offer, is unable to make special tariff agree- 
ments and must be satisfied with benefits reflected to it merely 
through its most favored nation clause. Eor no matter how 
large the circle of countries that conclude special tariff agree- 
ments with conventional rates it is plain, from what has been 
said above, that the reduction or "binding" of rates will apply 
only to such articles which constitute, so as to say, the special 
field of the respective countries. These reductions or conces- 
sions may or may not be of special importance to other coun- 
tries which receive the more favorable rates through the most 
favored nation clause only. As a matter of fact, industrial con- 
ditions at/ 1 the needs of foreign markets for various industries 
are not identical in the various countries. Hence, a country 



124 PRINCIPAL TARIFF SYSTEMS OF THE WORLD. 

which is able to offer concessions is in a better strategic posi- 
tion to obtain concessions for its export industries than a coun- 
try which has no such concessions to offer. 

This disadvantage becomes more pronounced in relation to 
the United States, which, as mentioned above, grants conces- 
sions only upon receiving equivalent concessions from the other 
nation. As a matter of fact, the concessions of Section 3 in the 
Dingley tariff have never been extended to articles the products 
of the United Kingdom, for the reason that the latter country 
was not in position to offer equivalent concessions. 

The Position of the United States. 

It is difficult to bring the United States tariff, now in force, 
under any one of the heads of tariff systems discussed, as, al- 
though chiefly of the first named or "autonomous" type, it 
partakes of some of the features of a. "maximum and minimum" 
tariff and by the adoption of the Cuban reciprocity treaty of 1903 
has also features of a "general and conventional' tariff. Sec- 
tion 3 of the Dingley tariff authorized the President to reduce 
duties on argols, brandies, sparkling and still wines, vermuth, 
paintings, and statuary, whenever reciprocal and equivalent 
concessions might be secured in favor of the products and manu- 
factures of the United States. The following countries are 
granted reduced rates under this provision : France, Germany, 
Italy, Portugal, Spain, and Switzerland. The concessions which 
were granted in the case of these several countries were, how- 
ever, not equal. Thus, in the case of Italy and Switzerland 
this country was able to obtain in exchange for concessions of 
Section 3 all the conventional rates granted by those countries 
to other nations, either through special tariff treaties or by rea- 
son of the most favored nation clause. In the case of Spain 
we are entitled to treatment under the minimum tariff. In the 
case of Portugal the concessions obtained included the lowest 
rates accorded to any other country, except Spain and Brazil, 
on wheat, corn, flours, except wheat, flour, lard, and grease, min- 
eral oil, certain agricultural machinery, tools and instruments, 
tar and mineral pitch. 

The concessions obtained from Germany in exchange for those 
given to her products under Section 3 of the Dingley tariff in- 
clude now most of the conventional rates granted by her through 
previous special conventions to Russia, Austria-Hungary, Italy, 
Switzerland, Belgium and Roumania, and Servia. In the case of 
France, however, the concessions from the general rates are 
more restricted and include at present merely the minimum 
rates on canned meats, manufactured and prepared pork meats, 
lard and its compounds, fresh table fruits, dried or preserved 
fruits, apples and pears, crushed or cut and dried, common 
woods, paving blocks, staves and hoops. 

In December, 1903, a reciprocal convention between the 
United States and Cuba went into effect, by the terms of which 
the United States granted a 20 per cent reduction upon all imr 
ports from Cuba, the products of that island; while the Cuban 
Government granted reductions on a large list of articles, vary- 
ing between 25 and 40 per cent, on the produce and manufac- 
tures of the United States imported into that island. The re- 
duced rates granted to Cuba have not been extenried to any other 
country, the United States Government regarding the commer- 
cial relations between this country and the island of Cuba as 
peculiar and sui generis. 

Illustration of the Conventional and the Maximum and 
Minimum Tariffs. 

Below are given extracts from the German and French Cus- 
toms Tariffs respectively as illustrations. 

The rates in the second column of the German Tariff, marked 
conventional, are the results of reciprocity treaties concluded 
with various foreign nations, with the exception of the rates 
given in Tariff Nos. 1, 2, 3 and. 4. These rates were fixed by the 
German Reichstag at the time of the adoption of the Tariff, so 
as to prevent a reduction of duties on these cereals below that 
limit as a result of treaty negotiations. 



PRINCIPAL TARIFF SYSTEMS OF TEE WORLD. 



125 



In the case of the French Tariff, the Parliament was likewise 
anxious to prevent a reduction of duties on cereals and this was 
done by failing- to provide any rates in the "minimum tariff" 
column on these products, leaving but one set of duties in the 
general tariff in tariff Nos. 68-76 inclusive. 



EXAMPLE OF CUSTOMS TARIFF OF FRANCE. 

(Maximum and minimum.) 
Schedule A — Import tariff. 









Rate of duty 


6 






(additional taxed 


fc 


Articles. 


Unit of 
quantity. 


inclu 


ded). 


Jo 

■c 


General 


Mini- 


o3 






tariff. 


mum 
tariff. 




Second Section— Vegetable Products. 










VI.— Farinaceous Food. 








68 


Wheat, spelt, and meslin: 




Francs. 


Francs. 




Grain 


100 kilos G. 


7.00 






Crushed, and grist containing more 












100 kilos N. 


11.00 






Flour at the rate of extraction (aux 










taux d'extraction) — 










Of 70 per cent and above 


-—do 


11.0Q 






Of between 70 per cent and 60 










per cent 


—_do 


13.50 








do 


16.00 




69 


Oats: 










Grain 


100 kilos G. 


5.00 






Meal 


___. do 


5.00 




70 


Barley: 








Grain __ . 


do 


3.00 
5.00 






Meal - — 


.—do — 




71 


Rye: 












do — 


5.00 
5.00 






Meal _ _ 


— do - 




72 


Indian corn: 










do 


3.00 
6.00 






Meal — 


do 




73 


Buckwheat: 










do 


2.50 
4.00 
4.00 
7.00 






Meal 


do 




74 


Malt-. 


do — 




75 


Ships' biscuit and bread-. 


— do — 




76 


Groats, grits (coarse flour), pearled or 








cleaned grain 

Millet, hulled or cleaned 


100 kilos N. 
100 kilos G. 


16.00 
6.00 




76bis 




77 


Semolina and Italian pastes (SO 2.40 






francs) _ 


100 kilos N. 


19.00 


16.00 


78 


Sago, salep, exotic feculse and their 












do 


11 00 


t9.00 




XXIII.— Glass and Crystal. 






348 


Plate glass: 

Less than one-half of a sauare meter 










in surface 


100 kilos N. 


25.00 


20.00 




One-half of a square meter, inclusive. 










to 1 square meter, exclusive — 










Rough _ 


Sq. meter, 
—do 


1.25 

4.00 


1.00 




Polished or silvered 


3.00 




1 square meter or more — 










Rough . 


—.do 


3.00 


2.00 




Polished or silvered 


_„do 


5.00 


3.50 


349 


Glass, common, cast or molded, with or 








without grooves, reliefs, or perfora- 










tions, of any thickness, shape, or 










size, for insulators, roofing, windows. 










piping, or pavements 


100 kilos G. 


6.00 


4.50 


350 


Table glass, of glass or crystal: 

Plain and molded, white, or of one 










color, and colored in the paste 


—.do 


6.00 


4.00 




Cut and engraved, in any other man- 










ner than is necessary for effacing 










the mark of the pontee 


100 kilos N. 


20.00 


16.00 




Decorated in gold or color 


- do 


35.00 


28.00 




Lamp chimneys 


—do 


18.00 


15.00 


351 


Window glass: 
Common- 
Panes not exceeding 50 square 










centimeters in surface 


100 kilos G. 


7.00 


5.00 




Panes exceeding 50 square centi- 










meters in surface 


100 kilos N. 


12.00 


10.00 




Colored or slightly tinted glass, un- 










dulated glass 


do^.... 


25.00 


20.00 




Framed window g'ass. colored glass, 










enamelei'. , engraved, decorated with 










lithographic, photographic, or other 










prints, or hand painted 


do .. 


120.00 


100.00 



126 



MAXIMUM AND MINIMUM TARIFF. 
Schedule A — Import tariff — Con tinned. 



352 
353 
354 



355 
356 



357 



Articles. 



XXIII.— Glass and Crystal— Continued. 

Watch glasses: 

Bough, including glasses for toy 

watches 

Glasses for clocks, flat, cut and 

polished 

Glasses for clocks, other, and watch 

-glasses, cut and polished 

Spectacle and optical classes: 

Plane, concave, or convex 

"Koylos," or window glass, cut on 

one surface 

Polished or cut 

Vitrifications: 

Vitrifications and enamel, in lumos 
and tubes — 

Not cut _ 

Cut, not rebaked 

Vitrifications in beads, perforated or 
cut, spun glass, balls, and imita- 
tion coral of glass 

Imitation precious stones, trinkets 

of glass, colored or not 

Flowers and ornaments of beads and 

porcelain, mosaics on paper.- _. 

Wreaths, finished or not. and other 
vitrified or porcelain articles, with 

or without metal ornaments 

Bottles, full or empty 

Cullet Or broken glass 



Unit of 
quantity. 



—do 

___.do 

. do 

100 kilos. N. 

-—do 

—do 



100 kilos G. 
—do 



100 kilos N. 

—do 

—do 



. do 

100 kilos G 
_.__ do___. 



Rate of duty 

(additional taxes 

Included). 



General 

tariff. 



Francs. 

20.00 

75.00 

180.00 



30.00 
180.00 



6.00 
7.50 



30.00 
150.00 
150.00 



175.00 

4.50 
Free. 



Mini- 
mum 
tariff. 



Francs. 
15.00 
50.00 
150.00 



15.00 
150.00 



5.00 
6.00 



20.00 
100.00 
125.00 



150.00 

3.50 

Free. 



I am a protectionist because I think by that policy the 
workmen of America will be well paid and not underpaid.— 
Hon. George F. Hoar. 

A tariff for revenue only resulted in cheaper wool, cheap- 
er bread, cheaper everything; there was no doubt about 
that; but did cheapness produce happiness, as they said it 
would? No; it produced misery, just as we said it would.— 
Hon. M. N. Johnson, in Congress, March 24, 1897. 

The railways can blame no one but themselves if the 
revelation of the flagrant violations of law and of their 
unjust administration of a public trust have led to an put- 
burst of popular indignation and have brought on temporary 
excess.— Hon. Wm. H. Taft, at Columbus, Ohio. 

The most casual observer must have perceived the rapid 
improvement in the commercial interests of the country 
which followed the enactment of the Dingley law, an im- 
provement which has steadily increased in degree notwith- 
standing the adverse influence of actual war. — Hon. C. W. 
Fairbanks, in U. S. Senate, June 3, 1898. 

I am a protectionist because facts confront us, not theo- 
ries. I have seen the wage-earners of Great Britain and con- 
tinental Europe; know how they live; that they are homeless 
and landless as far as ownership is concerned; that they are 
helpless and hopeless as to any brighter future for them- 
selves or their children; that in their scant wages there is 
no margin for misfortune and sickness, pauperism being the 
only refuge.— Hon. William P. Frye. 

What has been the result to the United States of this 
so-called colonial policy? Well, it has added to her trade 
something over one hundred millions of dollars. I do not 
think that is important except as a beginning. If the gov- 
ernment continues its friendly policy toward Porto Rico 
and the Philippines and opens her markets as well to the 
Philippines as to Porto Rico, this trade will treble and 
quadruple in a marvelOusly short time, so that merely from 
the standpoint of material progress, the mutual benefits for 
the people we are helping and ourselves will be no mean 
justification for the policy.— Hon. Wm. H. Taft, at Cleveland, 
Ohio. ^ 



One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION— New York World. 



THE CONVENTIONAL TARIFF. 



127 



[NOTE. 



EXAMPLE »P CUSTOMS TARIFF OF GERMANY. 

(Conventional.) 

Rates of import duty. 

—All rates are given per 100 kilos, net weight, except where otherwise 
indicated by footnotes.] 



Articles. 



General 
rate of 
duty. 



Conven- 
tional 

rate of 
duty. 




PART I.— AGRICULTURAL AND FOREST PROD- 
UCTS, AND OTHER NATURAL ANIMAL AND 
VEGETABLE PRODUCTS, FOOD STUFFS, AND 
ARTICLES OF CONSUMPTION. 

A.— Field, garden, and meadow produce. 

CEREALS AND RICE. 

Rye 

Tare: Sacks, 1 

Wheat and spelt. 
Tare: Sacks. 7 

Barley: 

Malting barley 

Other 

Tare: Sacks, 1. 

NOTE.— The following is to be regarded as bar- 
ley other than "malting barley," and to be ad- 
mitted at the reduced rate: 

(1) On entering at certain customs stations pro- 
vided with special authority, barley which, in its 
pure, unmixed, beardless state, does not reach the 
weight of 65 kilos per hectoliter, and likewise does 
not contain more than 30 per cent of grain of 
which the weight is 67 kilos per hectoliter or more. 
(2) Barley for which proof is furnished that it is 
unfitted for the manufacture of malt or that it is 
not intended for that purpose. 

In case the correctness of the ascertainment of 
the quantity admitted under (1) is disputed by the 
importer, or in case other grounds of doubt as 
regards the use to which it is to be put arise 
respecting a consignment presented for clearance 
on account of its special character, the customs 
department is only bound to admit the goods at 
the reduced rate, provided it is first rendered un- 
suitable for use in the manufacture of malt. This 
can be done at the option of the customs depart- 
ment by grinding, hulling, bruising, or any similar 
process. It is understood, however,' that the 
application of any such process does not entail 
any expense to the importer. 

Oats 

Tare: Sacks, 1. 

Buckwheat 

Millet (panicum, Italian millets) 

Maize (Indian corn) and sorghum (dhoura) 

Other cereals not specially mentioned 

NOTE TO NOS. 1-8.— Cereals in sheaves, as di- 
rectly gathered on the field, will pay half the duty 
in the grain as specified above. 

Malt, except that roasted or ground— 

From barley . 

From other grain 

Rice, not cleaned 



LEGUMES, DRY (RIPE), 



Beans for food 

Pease, lentils 

Beans for fodder (horse-beans, etc.), lupines, vetches.. 
NOTE TO NOS. 11 and 12.— Legumes in the straw 
are to pay half the duty of the class to which it 
belongs. 

OLEAGINOUS FRUITS AND SEEDS. 

Rape seed, colza seed, dodder seed, oil-radish seed, 
mustard seed, hedge-mustard seed 

Poppy seed, also ripe poppyheads, sunflower seeds, 
edible cyperus root, beechnuts, laurel berries 

Peanuts, sesame, "madia" seed, ben nuts, kapok seed, 
and Niger seeds.. — 



PART XV.— GLASS AND GLASSWARE. 

Glass in the mass (also glass paste unshaped or in 
rough lumps); fusible glass, enamel, and glazing 
in the lump, colored or not. and glass powder 
(ground glass) 

*Gross weight. 







larks. 
7.00 


Marks. 
5.00 


7.50 


5.50 


7.00 
7.00 


4.00 
1.30 


7.00 


5.00 


5.00 




1.50 
5.00 
1.50 


1.50 
3.00 


*10.25 
*11.00 


5.75 


4.00 


4.00 


4.00 
4.00 
2.50 


2.00 
1.50 
1.50 


5.00 


2.00 


2.00 


2.00 


2.00 




3.00 


3.00 



128 



COLONIAL TARIFF. 



Rates of import duty — Continued. 





Articles. 


General 
rate of 
duty. 


Conven- 
tional 
rate of 
duty. 




PART XV.— GLASS AND GLASSWARE— Continued. 


Marks. 


Marks. 


736 


Rough rods and tubes of natural colored glass 


3.00 


3.00 




Glass tubes and rods, without distinction of color, 








used for the manufacture of beads and blown art 








wares, etc 


3.00 


3.00 




Hollqw glass- 






737 


Neither molded nor ground, polished, smoothed, 
cut, etched, or figured — 








Of natural color 


3.00 


3.00 




White (or half white) transparent, with or 






without separate rings of massive white (or 








half-white glass) 


*8.00 
) 


•8.00 




Colored or white nontransparent, or even 


f 10.00 
t 15.00 




flashed with colored or white nontransparent 
glass 


V 17.00 




Tare: Oases, 40; casks, 40; hampers, 13. 




738 


With the bottoms only molded, or with the stop- 
pers shaped or ornamented by grinding, mold- 
ing, etc.— 
Colored or white nontransparent, or even 
flashed with white or colored nontransparent 








glass 


24.00 


15.00 




Other 


20.00 


12.00 




Tare: Same as No. 737. 






739 


Molded, ground, polished, smoothed, cut, en- 
graved, or figured in any other way- 
Colored or white nontransparent, or even 
cased with colored or white nontransparent 








glass 


30.00 


15.00 




Other 


24.00 


12.00 




Tare: Cases— Ink wells made of ground white 








transparent glass, 20; other, 40. Casks 40. 








Hampers, 13. 






740 


Painted, gilt, or silvered, also figured by colors 








being applied or burnt in r 


36.00 


20.00 




So-called "Silberglass" (ordinary, white, transpar- 






ent, uncut, and hollow glass, to which an even 








and glittering appearance of a color like silver 








has been imparted by means of washing the 








whole of the interior with amalgam, but which 








has not undergone any further process of work- 








ing on the outside), used as ornamental balls 








for garden posts, chandeliers, and the like 




15.00 




Other hollow glass of a like description 




20.00 




Tare: Cases, 40; casks. 40; casks. 40;hampers, 13. 







*Gross weight. 



Tariff Relations Between the Mother Country and its De- 
pendencies, Possessions, or Colonies. (Preferential Tariffs.) 

The tariff relations between the mother country and its col- 
onies may be classed under the following heads: 

1. Those in which Colonial imports into the mother country 
are subject to the same rates of duty as the products of foreign 
countries enjoying the most favored nation treatment. This 
mode of treatment of colonial imports prevails at present in the 
United Kingdom, Germany and the Netherlands ; in the case of 
the United Kingdom and Netherlands, which are practically on 
a free trade basis, the reasons of such policy are obvious. In 
the case of Germany the imports from her colonies consist al- 
most exclusively of such products, mainly raw materials, as do 
not enter into competition with German home products or manu- 
factures and are not subject to any duty whatever their orgin. 

2. Those in which colonial products when imported into the 
mother country are subject to preferential, that is, lower cus- 
toms duties ; thus, for example, the United States accords a 25 
per cent reduction from the general rates to all dutiable imports 
from the Philippine Islands. The French Government accords 
preferential treatment without limitation as to quantity to cer- 
tain articles, such as lumber, palm oil, etc., imported from the 
French West coast of Africa. In other cases reduced rates are 
charged on limited quantities of certain colonial products. 

3. Those in which the tariff of the mother country is made 
to apply to the colonies and trade between the mother country 
and its colonies is free and subject to no duty. An example of 
such treatment -is presented by the tariff arrangement existing 



3 COLONIAL TARIFF. 129 

between the United States and Porto Rico. In the case of tariff 
relations between France and the larger part of her colonies, 
while free trade exists in most articles exchanged between them, 
important exceptions to the general rule are found in the case 
of "colonial" products imported into France, such as cocoa, 
chocolate, coffee, tea, pepper, etc., which are subject to revenue 
duties, though in most cases these duties are 50 per cent below 
the minimum rates charged on imports of the same character 
from foreign countries. 

Treatment by the Colonies of Goods Coming from the Mother 
Country or other Colonies Under the Same Sovereignty. 

The fiscal treatment of imports from the mother country 
by the colonies is likewise three-fold : 

1. Those in which no fiscal favor or preference is shown to 
imports from the mother country. This is the arrangement pre- 
vailing at present in the Dutch German colonies and British 
Crown colonies, as well as in the Philippine Islands with re- 
gard to imports from the United States. 

2. Those in which the products of the mother country are 
subject to preferential treatment, that is, admitted into the col- 
ony on payment of lower rates of duty than charged on imports 
from foreign countries. The manifest purpose of such legisla- 
tion is to bring about a closer economic and commercial relation- 
ship between the colonies and the mother country and to open 
a more favorable market for the products of the mother country 
in exchange for better opportunities offered to the products of 
the colony in the markets of the mother country. Unless ex- 
isting treaties with foreign countries contain provisions to the 
contrary, it would seem that a foreign country cannot claim 
the extension to her products of the preferential rates on the 
basis of its most favored nation clause in its commercial treaty 
with the mother country. In practice, however, the application 
of preferential rates by the British self-governing colonies to the 
products of the mother country has given rise to controversies 
and tariff difficulties with foreign countries. Thus, for example, 
Canada involved herself into difficulties with Germany by ac- 
cording preference to British products ; the result of this diffi- 
culty has been that Canadian products imported into Germany 
are subject to the general tariff and not to the conventional 
rates. This preferential policy in British colonial tariffs is the 
growth of recent years. Canada entered upon this policy in 
1897 and accords now reductions of duty on a large number of 
articles, the product and manufactures of the United Kingdom. 
The new Canadian tariff which went into force November 30, 
1906. provides for the application of preferential rates to direct 
importations not only from the United Kingdom but also to 
products coming from British West Indies, British Guiana, Aus- 
tralia, Straits Settlements, New Zealand and the South African 
Customs Union. New Zealand in its tariff of 1907 accords pre- 
ferential treatment to certain articles which are the produce and 
manufacture of some part of the British dominions, either by im- 
posing duties of 20 to 50 per cent higher on the same articles 
when coming from foreign countries or by admitting free of 
duty certain other articles that are dutiable at 10 to 20 per cent 
ad valorem when not of British production. The Australian 
Commonwealth has also adopted the same principle of preferen- 
tial treatment of certain goods imported into the Commonwealth 
when the produce or manufacture of the United Kingdom. Fur- 
thermore these semi-sovereign colonies have entered into or are 
negotiating reciprocity tariff arrangements between each other, 
by which preferential treatment of the respective imports from 
each other is granted to an extent even larger than that which 
is accorded to products of the mother country. 

The third type of tariff treatment of the products of the 
mother country by the colonies is that prevailing in Porto Rico 
and in a large number of the French colonies, i. e., imports from 
the mother country are admitted free of duty. In a case of the 
French colonies which have adopted the same mode of treating 
the products of the mother country free trade exists between all 
of them, these colonies, together with the mother country, con- 
stitnt^no-, as it were, one greater customs union. 



130 



TEE TARIFF— RECIPROCITY. 



List of tariff treaties concluded by Germany with other European 

countries. 



Name of country. 


Date 
of 

sign- 
ing. 


Date of taking effect. 


Date of expiration. 


Austria-Hungary 


1905 

iyjt 

190 1 
1904 
1904 
1901 
1904 
1905 
1884 
1906 
1907 


March 1, 1906 , 




Belgium _ 


March 1, 1906 


December 31, 1917. 
December 31, 1917. 


Italy 


March 1, 1906 


Roumanla 


March 1, 1906 


Russia 


March 1, 1906 




Servia ___ 


March 1, 1906 

March 1, 1906 


December 31, 1917. 
December 31, 1917. 
February 28, 1911. 
6 months' notice. 
December 31, 1910. 


Switzerland 


Bulgaria 

Greece __. 


March 1, 1906 

July 9, 1884 

May 8, 1906 

July 1, 1907 


Sweden 


United States 









•With option of denouncing it 12 months before December 31, 1915. 

List of Recent Tariff Treaties Concluded hy France with 
other European Countries, with the United States and 
Canada. 

Austria-Hungary, 1884; Belgium, 1906; Germany (treaty of 
peace at Frankfort), May 10, 1871; Great Britain, 1882; Kouma- 
nia, 1907 ; Bussia, 1905 ; Servia, 1907 ; Spain, 1893-4 ; Sweden and 
Norway, 1892; Switzerland, 1906; Canada, 1907; United States, 
1908. 



RECIPROCITY. 

Reciprocity is another form of tariff revision which has been 
suggested at various times by various people and by people be- 
longing to various political parties. It was suggested by Presi- 
dent Arthur, James G. Blaine, and William McKinley ; was put 
into operation in the McKinley tariff law ; was destroyed by the 
Democratic Wilson-Gorman tariff law ; and now the Democratic 
party is charging that the Bepublican party is not willing to give 
the country "genuine reciprocity." 

There are two distinct kinds of legislation which have been 
designated as reciprocity legislation. The first of these was 
enacted by the Democratic party in 1854, taking effect in 1855. 
It was reciprocity with Canada, and provided that certain ar- 
ticles, the growth or produce of Canada or the United States, 
should be admitted into each country, respectively, free of duty. 
These were articles of common production in the two countries, 
and included grain, flour, animals of all kinds, fresh, smoked, 
and salted meats, cotton, seeds, vegetables, fruits, fish, poultry, 
eggs, hides, furs, stone, slate, butter, cheese, tallow, lard, ores, 
coal, pitch, turpentine, ashes, timber, lumber, flax, hemp, tobacco, 
and rags. These were all, with the single exception of cotton, 
articles of mutual production, and Democratic reciprocity simply 
provided for free trade in these competing articles. Under that 
treaty, which went into effect March 16, 1855, and terminated 
March 17, 1866, exports from the United States to Canada fell 
from $27,741,808 in the fiscal year 1855 to $23,439,115 in the fiscal 
year 1866, a reduction in our exports to Canada of over 4 mil- 
lion dollars during this period of Democratic reciprocity, while 
imports into the United States from Canada increased from 
$15,118,289 in 1855 to $48,133,599 in 1866, an increase of 33 mil- 
lion dollars. In our trade with all other countries during that 
same period our imports increased 60 per cent while those from 
Canada were increasing 220 per cent, and our exports to all 
other countries increased 70 per cent while those to Canada un- 
der this reciprocity were decreasing 15 per cent. It was simply 
free trade in articles of common production and with no barrier 
to protect the domestic producer — the result being a much 
greater increase in our imports from Canada than in those from 
other countries, and a decrease of exports to that country, 
while to other countries exports were increasing. 



I TEE TARIFF— RECIPROCITY. 131 

A later form of reciprocity with which the country has had 
jerience is illustrated by the plan formulated in the McKinley 
tariff law and expressed by William McKinley in his much- 
quoted speech at Buffalo, in which he said: "By sensible trade 
arrangements which, will not inter nipt our home production we 
shall extend the outlets for our increasing- surplus. * * * 
We should take from our customers such of their products as we 
can use without harm to our industries and labor. * * * If 
perchance some of our tariffs are no longer needed for revenue 
or to encourage and protect our industries at home, why should 
they not be employed to extend and promote our markets 
abroad?" 

To purchase fr\Dm our neighbor "such of their products as 
we can use without harm, to our industries and, labor;" in other 
Words such of their products as are not produced hy our own 
labor and obtain in exchange markets for the class of mer- 
chandise which we desire to sell, and which the countries in 
question require for their own use, differs materially from the 
reciprocity of 1855-56, which was merely free trade in articles 
of mutual production, articles which when imported compete 
with the home producer. The chief classes of products which 
we do not produce in the United States are tropical and sub- 
tropical. We import about 400 million dollars' worth of tropical 
and subtropical products every year; more than a million do . ir.s' 
worth for every day in the year, including Sundays and holidays. 
These articles we do not produce in the United States in suffi- 
cient quantities for home requirements. The}- include rubber, 
hemp, sisal, jute, raw silk, Egyptian cotton, and other articles 
used in manufacturing, and coffee, cocoa, tea, spices, olives, 
bananas, and sugar, used as food and drink. These classes of 
articles are of the class which "we can use without harm to our 
industries and labor." Sugar is the only article in this list 
produced in the United States, and at the present time the home 
production of sugar is only sufficient to supph" about one-fifth 
of the total home consumption. The countries which produce 
these tropical and subtropical articles are not manufacturing' 
countries, nor are they large producers of those great staples 
of food — flour, wheat, corn, and meats. As a consequence, they 
require the very classes of articles which the people of the 
United "States have to sell. 

Reciprocity Treaties Under tlie McKinley Law. 

Under the McKinley tariff law reciprocity treaties were 
made by President Harrison with the governments of Brazil, 
British Guiana, Salvador, Nicaragua, Honduras, Guatemala, Santo 
Domingo, and the countries governing the British West Indies 
and Porto Rico and Cuba. These treaties provided for a reduc- 
tion of duties on foodstuffs and manufactures from the United 
States entering the countries and islands in question, in ex- 
change for the free importation of sugar, coffee, tea, and hides 
into the United States, as provided under the general terms of 
the McKinley act. The result of those treaties with this group 
I of tropical countries, producing the class of articles whicn the 
United States requires and does not produce in sufficient quan- 
tities at home, was that our exports to those countries and is- 
lands increased 26 per cent and our imports from them increased 
28 per cent between 1890, the year of the enactment of the Mc- 
Kinley law, and 1894, the year in which it was repealed by a 
Democratic Congress and a Democratic President, and recip- 
rocity thus destroyed. During that same period our exports to 
all other countries than those above named increased 3 per 
cent and our imports from them decreased 27 per cent. 

The Hawaiian Reciprocity Treaty. 

Another example of reciprocity, that with countries pro- 
ducing the class of articles which we require and importing the. 
Class which we produce and desire to export, was the reciprocity 
treaty with the Hawaiian Islands. That treaty went into elVect 
September 9, 1876, and terminated April 30, 1900. During that 
period of the existence of that agreement, our exports to the 



132 TEE TARIFF— RECIPROCITY. 

Hawaiian Islands grew from $779,257 in the fiscal year 1876 to 
$13,509,14$ in the fiscal year 1900, while imports from the 
Hawaiian Islands of noncompeting articles demanded by our 
markets — tropical products — increased from $1,227,191 in 1876 
to $20,707,903 in 1900. Thus by taking from this tropical coun- 
try — Hawaii — its production of articles which we must import 
from some part of the world, we built up in the Hawaiian Is- 
lands a market for our merchandise seventeen times as large as 
in 1876. 

Reciprocity. 

The statements and tables which follow show in concise terms 
the experience of the United States with reciprocity. The prin- 
cipal treaties and agreements of the United States with other 
countries were, first, that with the British North American pos- 
sessions, from 1855 to 1866 ; second, that with the Hawaiian Is- 
lands, from 1876 to 1900, the date of annexation ; third, the 
series of agreements made under the tariff Act of 1890 and con- 
tinuing in force until terminated by the Wilson Act of 1894 ; 
fourth, reciprocal agreements with certain European countries 
made under the Act of 1897 ; and, fifth, the reciprocity treaty 
with Cuba, taking effect in December, 1903, and still in operation. 
The details of the agreements with these various countries and 
under these various Acts are stated below, and in the accompany- 
ing tables is shown the commerce with each of the countries in 
question covering the years immediately prior to that in which 
the treaty took effect and continuing to the end of its operation 
or to the present time in the cases of those still in force. It will 
be noted that in the trade with Canada, whose products are 
similar to our own, the exports from the United States to that 
country made but slight increase during the existence of the 
treaty, but have grown rapidly since its termination. In the 
case of the Hawaiian Islands the exports thereto grew rapidly 
under the treaty and have grown with equal rapidity since annex- 
ation, which made permanent the freedom of interchange be- 
tween that section producing tropical products required by the 
United States and requiring products of the temperate zone and 
of manufacturing industries such as those which the United 
States has to sell. 'In the countries with which reciprocity agree- 
ments were made under the Act of 1890, in nearly all cases tropi- 
cal or subtropical countries, the exports thereto showed marked 
gains during the existence of the reciprocity treaties. In the 
case of the European countries with which reciprocity agree- 
ments were made under the Act of 1897, the growth in the trade, 
while steady, seems to have been little affected by these agree- 
ments, which, as will be seen by the terms of the treaties, af- 
fected comparatively few articles. 

In the trade with Cuba under the reciprocity treaty of 1903 
there has been a marked growth in both imports from and ex- 
ports to that island, as will be seen in the table showing trade 
with Cuba from 1880 to 1908. The relations with that island, 
both commercial and otherwise, have been so varied during the 
last 20 years as to render interesting and important this state- 
ment of our trade therewith during that period and in the years 
immediately preceding. Under the reciprocity clause of the 
McKinley tariff act an agreement was made in June, 1891, with 
Spain, relative to Cuba and Porto Kico, by which sugar, molasses, 
coffee, and hides were admitted into the United States free of 
duty and in exchange for that privilege salted meats, fish, lard, 
woods for cooperage and manufactured into doors and frames, 
wagons, cars, sewing machines, manufactures of iron and steel, 
and numerous other articles from the United States were ad- 
mitted free of duty into Cuba ; also that corn, corn meal, wheat, 
flour and other articles should be admitted at reduced rates of 
duty. "This agreement remained in force from September 1, 1891, 
to August 27, 1894. From the latter date until the United States 
assumed control of Cuba in 1898 no special agreements or rela- 
tions affected trade between the United States and that island. 
American occupation of Cuba continued from January 1, 1899. 
at which date the Spanish evacuated the island and relinquished 
sovereignty, to May 20, 1902. On December 27, 1903, became ef- 
fective the present reciprocity treaty with Cuba, under which a 



THE TARIFF— RECIPROCITY. 



133 



^ 



reduction of 20 per cent is made in the rates of duty collected on 
all merchandise from Cuba entering the United States ; and in 
turn for that concession the Cuban rates of duty on articles from 
the United States entering that island are reduced 25 per cent 
on machinery and numerous other articles, 30 per cent on certain 
articles, 40 per cent on still other articles, and 20 per cent on 
other articles not included in the above classes or in the free list. 

Reciprocity Treaties and Agreements Between the United 
States and Foreign Countries Since 1850. ' 

.The following is a list of the reciprocity treaties and agree- 
ments which have been in force between the United States and 
foreign countries since 1850. Tables are also appended exhibit- 
ing our trade with those countries before, during, and after the 
period covered by the treaties. 



00© 






OO) .0) . 
©oo 03oo o> 

©tH £r-l g 

1-1 « o «o 

■gg g PflQQ 

f- MS MS 
cS d r; d rj 



Woo -oo 

00 tH 

_i 03 03 

O 03 -J 03 
C$ »£» 



'6 c 

ft* 
'I? 



OOOtHoO 



d o a d 

3 <sS to 3 



dd 



00 r-T 



TO 

So 



w *00 

. ^ Q • • 00 • * O 
<M(N COM -tHO •©< 

03© ,-030300 ©oq© ( 

CO 00 00 00 03 _T03 2 H ( 
HH fc, i-l rH CO ^ t-1 03 i 



<JfeS 






00^ 

^a 

*8 



00<M"iH 

-1-103 -03 

© 00O00 

00 .rHCOrH 



X3 (N^H 

sa-* a 

03 « 3,03 3 



2 d 
03 mz> d 

d TO O.03 

Iggi 

aS M'~' M 



03 • 
00O 
HO 
(MOO 03 
03 03 ~rH 

IO00 ^ 

S2^_ 






! -ho3 

.N £,£2 

'kS 03 03 



O 03 
OU3 rt 

tl'2 8 



"^ d * 

Afl«IOt< 
•- ' 2 * d 03 

u o3 ^ Jg u 



d~— ' W 03 TO 

Mils 

03 - c ^ *n 



« 03 7i 03 n3 to 

d « S o) to rt d 
"O 3 be 



a q- 



M™ rf^ r 



!-■ 



n d a 

<j 03 03 

d 03 03 

CS ^ fcn 

bJ3 if 



'« CS 3 O -03--H a ' 

'?S^-.9^d 

^SQrfTO"- u 3cS 

"3" o 3 c.s=dS 
cq A X O cfl m <J fr 



134 THE TARIFF— RECIPROCITY. 

There have been four distinct experiences with reciprocity 
in the trade relations of the United States : 

'(1) The reciprocity treaty with Canada, existing from 1855 
to 1866. The treaty affected imports from Canada east and 
Canada west, Nova Scotia, New Brunswick, and Prince Edward 
Island, but did not affect imports from British Columbia and 
Newfoundland. 

(2) The reciprocity treaty with the Hawaiian Government, 
existing from 1876 to 1900. 

(3) The series of treaties framed under the McKinley tariff 
act of 1890 with Brazil, Dominican Republic, Spain (for Cuba 
and Porto Eico), in 1891; and with Germany, United Kingdom 
(for British West Indies and British Guiana), Nicaragua, Sal- 
vador, Austria-Hungary, Honduras, and Guatemala, in 1892. 
These continued in existence until the passage of the Wilson 
tariff act, August 27, 1894. 

(4) The reciprocal agreements of 1900 with Germany, France, 
Portugal, and Italy, still in operation. 

(5) The reciprocity treaty with Cuba, framed and ratified in 
1903, and taking effect December 27, 1903. 

The detailed provisions of these various reciprocity treaties 
may be briefly described in general terms as follows : 

(1) The Canadian reciprocity treaty provided for the free admission 
into the United States from Canada, and the free admission into Canada 
from the United States, of breadstuffs, provisions, live animals, fruits, fish, 
poultry, hides and skins, furs, stone, ores and metals, timber and lumber, 
unmanufactured cotton, flax and hemp, unmanufactured tobacco — the list 
of articles being identical for each country. 

(2) Tho Hawaiian reciprocity treaty provided for the free admission 
into the United States of sugar, molasses, and other of the principal 
tropical productions of the islands, and for the free admission into the 
islands of breadstuffs, provisions,* manufactures, and general merchandise 
from the United States. 

(3) In the group of treaties made in the years 1891 and 1892, under 
the act of 1890, the provisions were briefly as follows : 

With Brazil the treaty provided for the free admission into the 
United States from Brazil of sugar, molasses, coffee, and hides, and the 
free admission into Brazil from the United States of breadstuffs, pork, 
fish, cotton-seed oil, coal, agricultural implements, machinery for mining 
and manufacturing, mechanical tools, material for railway construction, 
and numerous other articles, the product of the United States ; also for 
a 25 per cent reduction in the rates of duty on certain other articles, In- 
cluding provisions, manufactures of iron and steel, leather, lumber, fur- 
niture, wagons and carriages, and manufactures of rubber. 

With Cuba and Porto Rico the treaty provided for the free admission 
into the United States from Cuba and Porto Rico of sugar, molasses, coffee, 
and hides, and the admission to the islands from the United States, free of 
duty, of salted meats, fish, lard, woods for cooperage and manufactured into 
doors, frames, etc., wagons and carts, cars for railways, sewing machines, 
manufactures of iron and steel, oats and forage, and numerous other arti- 
cles, the product of the United States ; also corn and meal at 25 cents per 
hundred kilograms, wheat at 30 cents per hundred kilograms, flour at $1 
per hundred kilograms; also a reduction of 50 per cent of the duty on 
numerous other articles, especially manufactures. 

With British West Indies the treaty provided for the free admission 
into the United States of sugar, molasses, coffee, and hides from the 
islands, and the free admission into the islands from the United States of 
live animals, canned or dried beef, fish, eggs, machinery for agriculture, irri- 
gation, and mining ; carts and wagons, wire, railway material and locomo- 
tives, fertilizers, fruits, sewing machines, and a large number of manu- 
factures ; also a reduction of 25 per cent in the rates of duty on beef 
and pork, salted, and provisions, and of 50 per cent on bacon and hams, 
lard, bread and biscuits, boots and shoes, shooks and staves, and other 
articles. 

With the Dominican Republic and British Guiana, Nicaragua, Honduras, 
and Guatemala the provisions were similar to those with the West Indies. 

With Germany the treaty provided for the free admission into the 
United States of sugar, molasses, coffee, and hides from Germany, and 
the free admission into Germany from the United States of bran, flax, 
feathers, hides and skins, tan bark, also a large list of articles at a fixed 
rate of duty, but in all cases below the regular tariff rates — the list includ- 
ing breadstuffs, lumber, provisions, live animals, fruits, and certain manu- 
factures. 

The treaty with Austria-Hungary was similar in general character- 
istics to that with Germany. 

(4) The reciprocal agreements now existing between the United States 
and France, Portugal, Germany, and Italy, respectively, may be summar- 
ized as follows : 

France : The United States reduces the rate of duty on crude tartar 
from France to 5 per cent ad valorem ; on brandies or other spirits to 
$1.75 per gallon ; also a reduction on still wines and vermuth and on 
paintings to 15 per cent ad valorem ; while the French Government gives 
its minimum tariff rates to canned meats, table fruits, dried fruits, lard, 
manufactured and prepared pork meats, hops, paving blocks, staves, and 
logs and sawed or squared timber and lumber from the United States. 

Germany : The United States gives the same tariff rates as those 
named in the treaty with France on tartar, brandies, still wines, and 
paintings, and the German, Government gives to the United States the 



. THE TARIFF— RECIPROCITY . 135 

same tariff rates as those given to Belgium,. Italy, Austria-Hungary, Rou- 
mania, Russia, and Switzerland during the existence of the present tariff 
treaties with them, and annuls its regulations regarding dried fruits from 
the United States, providing in their stead a system of inspection on 
account of the San Jose scale, 

Portugal : The reductions on crude tartar, brandies, wines, and paint- 
ings accorded to Germany and Prance are given by the United States to 
Portugal, and the Portuguese Government gives to the United States as low 
rates of duty as those accorded to any other country, except Spain and 
Brazil, on breadstuffs, lard, mineral oils, agricultural implements, and 
certain machinery for manufacturing. 

Italy : The above-named rates with reference to tartar, brandies, 
still wines, and paintings are given by the United States, and a reduc- 
tion is made by the Italian Government on imports of cotton-seed oil, fish, 
machinery, scientific instruments, fertilizers; and skins, 

(5) The treaty with Cuba which went into operation December 27, 
1903, gives a reduction 'of 20 per cent duty on all dutiable articles from 
Cuba entering the United States and a reduction ranging from 20 to 40 
per cent on articles from the United States entering Cuba. 



Republican reciprocity in non-competing articles and in 
nothing else.— Hon. John Dalzell, in Congress, March 1, 1004. 

Protection brings together diversified indnstries which 
never fail to vastly increase the personal inteligence, indus- 
try, and wage earnings of the people. — Hon. Justin S. Morrill. 

Many of our great industries, including the sill* industry, 
the pottery industry, the carpet industry, and the steel-rail 
industry, had only a nominal existence until adequately pro- 
tective duties were imposed on competing foreign products. 
—James M. Swank, in the American Economist. 

The present phenomenal prosperity has been under a 
tariff which was made in accordance with certain fixed and 
definite principles, the most important of which is an 
avowed determination to protect the interests of the Ameri- 
can producer, business man, wage-worker, and farmer alike. 
—President Roosevelt at Minneapolis, April 4, 1903. 

The 3,000,000 of men -who went out of employment with 
the revision of the tariff by the Democratic party found em- 
ployment in the enactment of the Dingley law by the Re- 
publican party, and a million and a half have been added to 
those -who have employment in the industries of the coun- 
try.— Hon. P. P. Campbell, in Congress, April 1, 1904. 

Those foreign countries -which have adopted protection 
have, in the elements by which you have been accustomed to 
test the prosperity of a nation, improved in a greater ratio 
and more rapidly than -we have ourselves; and I have also 
to point out that this tendency, which has become so mani- 
fest in recent years, is likely, as every sensible man of busi- 
ness knows, to be accentuated as time goes on. — Hon. Jos. 
Chamberlain, at Liverpool, Oct. 27, 1903. 

The avowed policy of the National administration of 
these two Presidents has been and is to govern the Islands, 
having regard to the interest and welfare of the Filipino 
people, and by the spread of general primary and industrial 
education and by practice in partial political control 
to fit the people themselves to maintain a stable and wel- 
ordered government affording equality of right and oppor- 
tunity to all citizens. — Hon. Win. H. Taft, in special report 
to the President. 

Certain great trusts or great corporations are wholly un- 
affected by the tariff. Practically all the others that are of 
any importance have, as a matter of fact, numbers of small- 
er American competitors; and, of course, a change in the 
tariff -which would -work injury to the large corporation 
■would -work not merely injury but destruction to its smaller 
competitors; and equally, of course, such a change would 
mean disaster to all the wage-workers connected with 
either the large or the small corporations. — President Roose- 
velt at Minneapolis, April 4, 1903. 

In the ten years -which has elapsed since the enactment 
of the Dingley Tariff, the conditions have so changed as to 
make a number of the schedules under that tariff too high 
and some too low. This renders it necessary to re-examine 
the schedules in order that the tariff shall J>e placed on a 
purely protective basis'. By that I mean it should properly 
protect, against foreign competition, and afford a reason- 
able profit to all manufacturers, farmers, and business men. 
but should not be so high as to furnish a temptation to the 
formation of monopolies to appropriate the undue profit of 
excessive rates.— Hon. Wm. H. Taft, at Kansas tity. Mo. 

One vital, dominating fact confronts the Democratic 
party -which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.-New York World. 



136 



TEE TARIFF— RECIPROCITY. 



IS 




o 




H«i 




oc 








Si 




<» 




<» 




s> 




e 




« 




eo 




■*^ 




SK 


^^ 




8 


<S 




<D 




^ 


o 


fc% 




e 


+» 




a 


^ 


S 


*» 












3 


~ 


CO 






4* 


1 



§ H 



c 

CD 

e 

c 



»0Q 
P«G o 



5 30 | 



••«*• i I » a oo n n 

*J „ I I » - - » . 

C3 © I IMMMCOlfi 

gio i©©r~o-«j< 

M rH 08 08 •-• r-l rH i-l i-l 



i © ieio © eo 

I CON ©rHOO 

i csf t~- Nja rj 

INHHOOO 



.<M OS 0SCNlo3e§<M(N 



^3 

os s 



! ! 



; : i 



>©©©©< 






ir~<MQOtoi~i^^iftm© 



;t-T-lt-00COI~©©©CO 

I •<*io co c<i co co"co*-<i< 10 © 






gpi^csn^t^i-i-*©©eo 
™ © w 35 r- co © t~ t> co "* 



Q<N CO OO © © t~ i 



c3 S 



© i— I 7-1 CO ■* io < 

©©©©©©< 

OOKXXOOXMXOOce 



^1 

K.8 



si* 



©53iaifico'Mao©eOi-* 

OS «5 CO © ©CO NNNlOlC 

*3 ©j> eo t- in i> rn © © w 
Q <m"im co co"co a* eon co co 



•**©©©©©oi^t^-<!< 

g-*©<M'#©-*t~©COI>. 

08©CO©GOmt^in<N©r- 

E3 © CO -*■ CO N l- © O-l © ■** 
"q©IC©<M©0000©©00 

Q ■**< m r~ oo j>Too"© © i-i esi 



ttO 



03.3 



p,po 

h.2 



pO o 



io-*i-(oo-o'(M©©ao 

I H (O e» M !C O •* C - w 

>©l>-1-l©rH^!C~©© 



e3M<co©ift©r-~©©ooi-- 
— j co -* oo t— t-* cn t> m t- in 

7?i-ii-IC<]'M©C<ICOin©CKI 



©i-<e>!co-«*in©f-oo© 
cooocofeaoaoooooocao 



THE TARIFF— RECIPROCITY. 



137 






op'a 
a ^ o 

as* 



I? A 



°D3 



tat/2 

Id I 

HP 



IS* 



bHHifiLTt-6(Or-^ 1 r-- -/->- i- x .- — 
;r-ooor~-<r'-'i < co©rncocyi©G©iff.r~i»i--oi'X 



S H X UO y H ^ O g ! 



HHWMcnirooif ^ 



a- P 
■x m+" 
H? 



gPS 
S22 



H p 



gPS 



oP i 

a- <"> 

x s ■" 
H p 



^ • 1 

2PS 

=?o o 



M 



NHMO00«NMffl'*aoM(SOIDiNa00OO 
SSfeHiCTfHUSXCINMt-r-^NNKOKC? 

£; rT-* i-h O so*© © ■"* iff © of if? O co mm iff"-* © © ©* 

S * is is h o s o h c » » f) x l- l': ^ /. e x n 5 

5 r-*rH*rH*rH CN eg" CO rH CM »J CO W* ei»*CO CO* 00 CO*-* CO CO -*1* 



lO0t-©CO00CO©©J 



a N O IM » i 



2rH3QC0©©^0:iH<H"C0©rHiffC0H-il0C3.©C0 1ffO 
SrJX00t-Mf'-HCK*XL'~C.J>rH'MCXCiCO 
— COCOC0t'-rH©lfft~r~©COi--0030t~rHCO © t~t> © 

$ t^aooQosaS oo oo t-"oo t-- oo oooooo o"©"©*© © © co 

P -H rH rHrH 



©C000'«t<C0C000-'*<00irst~C0©lff©0C©C0COC0© 

■* CO — i X CO S? t~ -<f rH 3C X X -M ~1 * — r^ 0-1 iff iff o 

JCCOHHlCHf ©SH-L'IKeNSOINXO 



I W. © dQC0-<r , ©©t>XC0©rHX00rH-*CO"'a<C0rH! 

5 cm* if? -** <o* co" to" co* ©" ©" co* ©* ■* r-T co" co" co* oo" © © co* CO 

Q rH-rH r-lrHrHi-li-l rHi-lr-(i-lrHrHr-lTH rH i-t rH rH 



MOeOXOL'IXMMa-rO'MMHHOOfflO 

a ^ ■* c c ?: : :i i - •: n -h - ■>! m w n m n c o 
*2 td-*c*©"Tr"x"T-"©"oo"c? ©iff c*x*o*x"r-*x*T-*co*©* 

S -t o C. C 3 ^ N C O H * M N M ?. J: K r- O c 5 
rH<Ot > 00rHC0rH©C0©©t>©©£~XX>©CO-W<CCC5 

o jjjrf^w .-.-„-.- 

©<MOO©<M©©t^O'*>ffCO-^<kr>t^r~C73©-^'l>0 

MOlSwCMCI.NM'tOhHXXOOMXO 
••«i<r-(C35©I>-l^"3'tO©lff)T- J l^tOt~30C3'*rHt^r-'© 

^J CO*Co"cO CO © Iff© -#"© Oo'oTlO X*l>*© r-l OO CO r-*r-"o 
SNStfJXMu-MNaHr.X^Jtr-OTr'MNO 
-•*tO-*NM*3aHHHfOi>0!DXOHHHO 
O rH*rH* rHrH* CO* rHCO CO* rHrH iH* r-T rHrHrHr-* 



(MNONOrMMNlfllOir5HOS*OK'(M«3lMHO 
CO X — l — t>- iff -H tC r-l OS © rH O © X 01 X iff Iff i— © 

.OSOSHMHiiOOOlCXHMt'-CCXHO 

2 t- ©*eo co"r>-*r- iff co oi*o © to t-"co o> x*r- ■* o co"© 

SMC^aCMMNCn-XMX^-MTff.clO 
'■SOMOMSiSSONHOHXTMCCXaaiffiCO 



© HHi 

q 



rHc0©rHco©o3oocorHiff©co©ifft^J'^^acco© 

. l^ TT 35 © r^- CO I--~ © OT © CO CO © CO CI O". © I-~ © to © 
ffi * rH C0^ CO © X 00 h^ r~ c^ r^ X CD O] © © CO X X "*r r- © 

ij co"r- us iff"r-"©"-*"oo"x"oj"iff"^"©"iff oo* iff oc" co* oo" 30 © 

CO 31 -*r" iff © iff — c :: 'O - o '. ^ C) K N O N n N 7>1 o 
~^^COt^©^lfflftC0C0©lfflff©©Xlfflff-*©rH 

O rH*rH* rH* r-* r-T rH* rH r-T r-T r-T r-T rH* r-T CO* rH* rH* rH* rH*rH*rH*rH 
ft 

WlO'fH-WinHHHHCOCOmqiLO'fiNlCHtCP 
M>5JMMr.HXN~3-L"C r. "-' X r* Iff iff © 
•lArH©O5C0CDlfft-©35C0©-«t<©lffi—COC0C0©© 

£« ©*t-*co"©*iff"rH oo"iff© ^"<m co"rH*iff~co"co*i>*©"co"co Q 

C3 35 CO Iff ■ T rH t- Iff -r- rH CO Iff CO 30 rH X Iff Ol CO CO CO © 
r-j«©COlff>©lO"*im©COi-~l>00rHrH©©»fiJr-CO00a0 



tHC>(NXNH<OH( 
aiNHMH-fCC*' 
in«3)HMt6Nt-l 



35in-«r35C0-H<lffC0©I>.-'*rH 



INHMlCO' 



;§s^S5i 



"* 06 <-' 30 i 



Opt- T* rH ( 

© CO © rH J 



rH rH rH CO CO rH CO CO 



h 7! ■* M M - X C. H r CCM t - lC CI Cliff - o 

OrH-+lfftOX©LffXr-Cff©-H--: * ?1 C C O 

-t-©C0Xlff.-H«©rHt-©"'*<X35©C0©COX© 

S'ufftrrH^^tVffpSfe ^""^ ^"^^^tH""? 000 ?' 



-©© 

5 rHiH rHrH" rHCO CO* 

Q 



I rH rH rH CO CO CO rH 



' iff --T — -T -M 
IXH-OOrnQO, 
! © CO CM © rH 



Cn30©tD-ft~O5CO-H<00lff-^)COrHCOt^( 

© co rn x r. oi x — to i- — co © ■>*• iff rH : 

i-H00t^lffC0©lffC0Ol©-H-C0©00vftC0' 
"iff"©*© CO tVlM CMCO*©rH HC3' 

-m ~ v oiAHOiHaoaopiDi 

> CM to © oo X < riffc;rt.to©co: 



5«M(NNCO(N(MIN(NtH rH* CN (N CO <M CO I 







cc.p 

rr- CO 

ftS 

rH 



82 



feci 

3 3 

rMrH 



ftS 

«3 



i." ;' a 

M C JH 



138 



THE TARIFF— RECIPROCITY. 



vPJl 


+J 


BtJ.-l 


%Z* 





g ifl 05 00*^0 •* CO in CO t- <N CO W < 

^ N « O N M O ION lOtcTrH oTo-f I 
aHeONtO«Sl0 10HO-*NC!H' 
O CN CN1 <N CM <N CM <N CM CO CO < 



as.§ 



•a 



©pa 

^ ^ o 



mm 

8a2 

HP 






OP A 
ft - ° 

Wo 



gpg 



51 






■JWNOinosoinooooonM^o 
,irp53oococo«DoiciNcSeo-*t^O 

co C»CM>.-rM0053-t<OOCO<M-*G<lM<0 

b go © of co o w 05 <«*i m io ^"hoo 

a^OOOOOMMNt^H^lA^OOO 

Q O -H-*C0-*r-jt-~int-- HO OS CO Co"in 

, a a io o m >* -* io os -* h to in o 
^ eo as o^omMtOHooHN-mo 

;^i-ico©GN<Mco-nm<Mg$in cnTi^o 
^i^ioc^cocooocxHHin&cocoooQ 

^5 05 rH LftHlft.CONO(000)-*N5 

2iNM« tHco uo in co'co^cnTi-h i-Tcn CO 



Opr-(iH-^OCDpOiCNIt-l>-OpOC> 
^ 'Of^ (NiOCOCN-*^*iC(MlOt^lCO 

J-j © in •* in in co ©"of co"» co"ci"af © 
Sffiirsco^Q-*r^L^c»co-^icoi-p 

^<005(NO>C01>COr-(Tt<-*tlc<lr-l->*'0 
2 rH CM CM eitN* M*MM M CO~lfl irfco lO 



CO©00©< 
(M 5S in CM i 
-* OS 00 CO i 






'CO(M-t<OCOCOOO(MOOiHCOi 

'•oKOcocjiftr^'yjeo-fiNOO-tfi 

HWOiNN^MONNONi 



r-(|>fMCOt~-CO-*r-ICMOiCMCON.© 

""r^oocorHt^-t(ioin?5 
iiflriO 



i0)-*i(50i 



3ri c;!l i f: "' ,c 3 _H0 o~ t,CD ooooi^mo 
c3in^cpcoco<-sir-ii'>-+<Mino":in© 

a<BrlOCO(i5cD!Ol6NCOHlO*e> 
?OlM oT-^f O 1^. -V&V2CQ Mo"p"f" 
QCMCMiH<MCMCMcMC0C0C0CO'*l5-*t< 



NOHOCSNI 



co co ^ as 55 c-75 <m oo co do i~- §5 6s © 

ujHovoNoooaacq^^^coo 

tJ of© •* of co in -»Tcm in oi t-T^ ■•* © 

CS-HJffilOCJMHHOONMaOO 
2HOin^lftMNlOCJN CO .00 •C © 



rtNrtoooir>oi(ONi>»Qt-© 

gCOOTHil^MMCOOTtiTidSbO 
okmoooonohw^m^o 

^ o(ooo"®(nooo"o"o"o''iom'© 
ta-flcococo-^rHiScnini-iegrHQCS 

a'0'MlONHO'*CCO-*(»'*000 

5 ,_l 5© t~- ^IINCOlflC-l ©.it* OS Co"l^- rH 
QtOOffllflCONNOOaoOOOOC-lO 



III! 
ill! 



iOH(MPO^lOCON< 

) 55 01 cS as oi' os os oS < 



73 Q) 



8§§ 

S.S.8 



-t^ CO cp 

Til 

00S0 






ss8 



CS.O O 



The administration of exact justice by courts without 
fear or favor, unmoved by the influence of the wealthy or 
by the threats of the demagogue, is the highest ideal that 
a government of the people can strive for, and any means 
by which a suitor, however unpopular or poor, is deprived 
of enjoying- this is to be condemned. It is important, how- 
ever, that appeals to judicial remedies should be limited in 
such a -way that parties -will not use them merely to delay 
and so clog efficient and just executive or legislative action. 
—Hon. Win. H. Taft, at Columbus, Ohio. 

A protective tariff unquestionably increases the rewards 
of labor (a) by creating a demand for skilled labor, (b) by 
diversifying the kinds of labor in a country and thus differ- 
entiating both demand and supply, and (c) by making for 
producers of every kind a home market. This increase of 
the laborer's reward is not confined to the protected indus- 
tries, but elevates wages in every sphere (a) by the sympa- 
thetic effect of high wages generally, and (b) by withdraw- 
ing from the nonprotected industries and from agriculture a 
surplus of wage-earners who -would divide and reduce wages 
if they competed against each other. — David J. Hill, D. D., 
LL. D.. Ex-president University of Rochester and present 
Embassador to Germany. 



THE TARIFF— RECIPROCITY WITH CANADA. 



139 



Commerce beticeen the United States and Canada, 1850 to 1908 

[Official figures from Bureau of Statistics.] 



Year ending 
J une 30 - 


Exports 
to Canada. 


Imports 
to Canada. 


Excess of— 


Exports. 


Imports. 


1850 


Dollars. 
9,515,991 
11,787,092 
10,229,608 
12,423,121 
24,157,612 
27,741,808 
29,025,349 
24,138,4S2 
23,604,526 
28,109,494 
22,695,928 
22,676,513 
20,573,070 
27,619,814 
26,574,624 
28,829,402 
24,828,880 
21,020,302 
24,080,777 
23,381,471 
25,339,254 
32,276,176 
29,411,454 
32,534,934 
41,827,904 
34,547,219 
33,375,719 
37,418,315 
37,146,682 
29,604,385 
29,460,257 
37,903,322 
36,500,403 
44,417,110 
44,306,196 
38,245,634 
33,462,800 
34,988,110 
35,882,383 
40,607,561 
40,282,108 
38,147,778 
43,299,787 
46,794,332 
56,664,094 
52,854,769 
59,687,921 
64,928,821 
83,714,086 
87,974,961 
95,319,970 
109,642,993 
123,266,788 
105,789,214 
131,234,9S5 
140,529,531 
156,736,685 
183,206,067 


Dollars. 
5,179,500 
5,279,718 
5,469,445 
6,527,559 
8,784,412 
15,118,289 
21,276,614 
22,108,916 
15,784,836 
19,287,565 
23,572,796 
22,724,489 
13,511,025 
17,4S4,786 
29,603,736 
33,264,403 
48,528,628 
25,044,005 
26,261,379 
29,293,766 
36,265,328 
32,542,137 
36,346,930 
37,175,254 
34,173,586 
27,867,615 
28,805,964 
24,164,755 
25,044,811 
25,719,771 
32,98S,564 
37,684,101 
50,775,581 
44,294,158 
38,399,835 
36,695,685 
87,304,036 
37,847,277 
42,924,554 
42,738,074 
39,042,977 
39,087,782 
34,954,203 
37,777,463 
30,790,916 
36,574,327 
40,8S7,565 
40,309,371 
31,870,486 
31,220,967 
39,369,074 
4S, 076, 124 
54,781,418 
42,482,163 
51,562,791 
62,469,632 
68,237,653 
73,334,615 


Dollars. 
4,336,491 
6,490,374 
4,760,163 
5,905,038 
15,288,996 
12,623,519 
7,748,735 
2,029,566 
7,819,690 
8,821,929 


Dollars. 


1851 




1852 




1853 _ 




1854 




1855 a 




1856 a 




1857 a 




1858 a 




1859 a 




1S60 a 


876,868 


1S61 a . 




47,976 


1862 a 


2,062,045 
10,135,028 




1863 a 




1864 a_- 


3,034,112 


1S65 a 




4,435,001 


1S66 a 




23,699,748 


1867 _ . 




4,023,703 


1S9S _. 




2,180,602 


1869 




5,912,295 


1870 




10,926,074 


1871 




265,961 


1872 ... 




6,935,476 


1873 _ 




4,640,270 


1874 


7,654,318 
6,679,604 
4,569,755 
13,253,560 
12,101,871 
3,884,614 




1875 




1876 




1877 




1878 




1879 




1S80 


3,528,307 


1881 


219,221 




18S2 


14,275,178 


1883 . ... . . . 


122,952 
5,906,361 
1,549,949 




1884 _. 




1885 _ 




1886 


3,841,236 


1887 .- 


2,859,167 


1888 _ . _ 




7,042,171 


1389 . 




2,130,513 


1890 


1,239,131 


1891 


940,004 


1892 


8,345,584 
9,016,869 
25,873,178 
16,280,442 
18,800,356 
24,619,450 
51,843,600 
56,753,994 
55,950,896 
61,566,869 
68,485,370 
63,307,051 
79,682,194 
78,059,949 
88,499,032 
109,871,452 




1893 




1894 




1895 




1896 — 




1897 




18^8 




18)9 __ 




1900 . ._ 




1902 




1903 




1901 _ 




1904 




1905 




1906 




1907 










a Period 


of reciprocal 


trade. 





Protection alone insures American labor against European 
pauper wages. — Former Senator Casey, in the American 

I Economist. 

The civilized world substantially protects itself, thus 
forcing- us to protect ourselves. — Hon. D. B. Henderson, in the 
American Economist. 

"We aslc that sober and sensible men compare the work- 
ings of the present tariff law and the conditions which ob- 
tain under it -with the workings of the preceding tariff law 
of 1804 and the conditions which that tariff of 1894 helped 
to bring abont. — President Roosevelt's speech accepting 1J)()4 
nomination. 



I believe that a navy is the greatest insurer of peace 
that we could possibly have — a navy commensurate with our 
resources, and commensurate with our coast line, and com- 
mensurate with the number of dependencies -we have, and 
commensurate with our population, and commensurate with 
our influence as a world power.— Hon. Win. H. Taft, at Cleve- 
land, Ohio. 



140 THE TARIFF— PARTY PLATFORMS ON. 

' Trade of the United States with Cuba, 1880 to 1908. 



Fiscal year ending June 80— 


Imports 

into the 

United States 

from — 


Exports 

from the 

United States 

to- 


1880 

1881— 

1882 L 

1883 


Dollars. 
65,423,018 
63,003,404 
70,450,652 
65,544,534 
- 57,181,497 
42,306,033 
51,110,780 
49,515,434 
49,319,087 
52,130,623 
53,801,591 
61,714,395 
77,931,671 
78,706,506 
75,678,261 
52,871,259 
40,017,730 
18,406,815 
15,232,477 
25,408,828 
31,371,704 
43,423,088 
34,694,684 
62,942,790 
76,983,418 
86,304,259 
84,979,821 
97,441,690 


Dollars. 

11,225,699 
11,364,585 
12,134,821 
15,103,703 
10,910,753 
9,006,160 
10,409,170 
10,546,411 
10,053,530 
11,691,311 
13,084,415 


1884 

1885 

1886 


1887 

1888 

1889 — 

1890 


1891 

1892 .*. 

1893 


12,22i,838 
17,953, ~>70 
24,157,698 


1894 :. 

1895 


20,125,321 
12,807,661 


1896 — 


7,530,880 


1897 

1898 


8,253,776 

9,531,656 

18,616,377 


1900 

1901_ 


26,513,400 
25,964,801 


1902 _._ 


26,623,500 


1903 

1904 _ - 


21,761,638 
27,377,465 


1905 


38,380,601 


1906 

1907 


47,763,688 
49,305,274 


1908 











TARIFF IN REPUBLICAN AND DEMOCRATIC PLATFOR31S 
1860 to 1908. 

REPUBLICAN TARIFF PLANKS. 

1860 

While providing revenue for the support of the General 
Government by duties upon imports, sound policy requires such 
an adjustment of these imposts as to encourage the development 
of the industrial interests of the whole country; and we com- 
mend that policy of national exchanges which secures to the 
workingmen liberal wages, to agriculture remunerative prices, 
to mechanics and manufacturers an adequate reward for their 
skill, labor, and enterprise, and to the Nation commercial pros 
perity and independence. 

(1864 and 1868 no special reference to tariff.) 

1872 

The annual revenue, after paying current expenditures, pen- 
sions, and the interest on the public debt, should furnish a 
moderate balance for the reduction of the principal, and that 
revenue, except so much as may be derived from a tax on 
tobacco and liquors, should be raised by duties upon importa- 
tions, the details of which should be so adjusted as to aid in 
securing remunerative wages to labor, and promote the indus- 
tries, prosperity, and growth of the whole country. 

1876 

The revenue necessary for current expenditures and the 
obligations of the public debt must be largely derived from 
duties upon importations, which, so far as possible, should be 
adjusted to promote the interests of American labor and ad- 
vance the prosperity of the whole country. 

1880 

We reaffirm the belief avowed in 1876, that the duties levied 
for the purpose of reven\3 should so discriminate as to favor 
American labor. 



THE TARIFF— PARTY PLATFORMS ON. 141 

1884 
It is the first duty of a good Government to protect the 
rights and promote the interests of its own people. The largest 
diversity of industry is most productive of general prosperity 
and of the comfort and independence of the people. We, there- 
fore, demand that the imposition of duties on foreign imports 
shall be made not "for revenue only," but that in raising the 
requisite revenues for the Government such duties shall be so 
levied as to afford security to our diversified industries and 
protection to the rights and wages of the laborer, to the end 
that active and intelligent labor, as well as capital, may have its 
just reward and the laboring man his full share in the national 
prosperity. Against the so-called economic system of the Demo- 
cratic party, which would degrade our labor to the foreign 
standard, we enter our earnest protest. The Democratic party 
has failed completely to relieve the people of the burden of 
unnecessary taxation by a wise reduction of the surplus. The 
Kepublican party pledges itself to correct the inequalities of 
the tariff and to reduce the surplus, not by the vicious and 
indiscriminate process of horizontal reduction, but by such 
methods as will relieve the taxpayer without injuring the labor 
or the great productive interests of the country. We recognize 
the importance of sheep-husbandry in the United States, the 
serious depression which it is now experiencing and the danger 
threatening its future prosperity ; and we, therefore, respect 
the demands of the representatives of this important agricul- 
tural interest for a readjustment of duties upon foreign wool 
in order that such industry shall have full and adequate pro- 
tection. 

1888 

We are uncompromisingly in favor of the American system 
of protection ; we protest against its destruction as proposed 
by the President and his party. They serve the interests of 
Europe ; we will support the " interests of America. We ac- 
cept the issue and confidently appeal to the people for their 
judgment. The protective system must be maintained. Its 
abandonment has always been followed by general disaster to 
all interests, except those of the usurer and the sheriff. We 
denounce the Mills bill as destructive to the general business, 
the labor, and the farming interests of the country, and we 
heartily indorse the consistent and patriotic action of the Ke- 
publican representatives in Congress in opposing its passage. 
We condemn the proposition of the Democratic party to place 
wool on the free list, and we insist that the duties thereon 
shall be adjusted and maintained so as to furnish full and 
adequate protection to that industry throughout the United 
States. The Republican party would effect all needed reduction 
of the national revenue by repealing the taxes upon tobacco, 
which are an annoj^ance and burden to agriculture, and the 
tax upon spirits used in the arts and for mechanical purposes, 
and by such revision of the tariff laws as will tend to check 
imports of such articles as are produced by our people, the 
production of which gives employment to our labor, and re 
lease from import duties those «rticles of foreign production 
(except luxuries) the like of which cannot be produced at 
home. If there shall still remain a larger revenue than is 
requisite for the wants of the Government, we favor the entire 
repeal of internal taxes rather than the surrender of an}' part 
of our protective system, at Wie joint behests of the whisky 
trusts and the agents of foreign manufactures. 

1892 

We reaffirm the American doctrine of protection. We call 
attention to its growth abroad. We maintain that the pros- 
perous condition of our country is largely due to the wise rev- 
enue legislation of the last Republican Congress. We believe 
that all articles which cannot be produced in the United States, 
except luxuries, should be admitted free of duty, and that on 
all imports coming into competition with the products of 
American labor there should be levied duties equal to the dif- 






142 TKE TARIFF— PARTY PLATFORMS ON. 

ference between wages abroad and at home. We assert that 
the prices of manufactured articles of general consumption have 
been reduced under the operations of the tariff act of 1890. 
We denounce the efforts of the Democratic majority of the 
House of Representatives to destroy our tariff laws by piece- 
meal, as manifested by their attacks upon wool, lead, and lead 
ores, the chief product of a number of States, and we ask the 
people for their judgment thereon. 

1896 

We renew and emphasize the allegiance to the policy of 
protection as the bulwark of American industrial independence 
and the foundation of American development and prosperity. 
This true American policy taxes foreign products and en- 
courages home industry ; it puts the burden of revenue on 
foreign goods ; it secures the American market for the Ameri- 
can producer ; it upholds the American standard of wages for 
the American workingman ; it puts the factory by the side of 
the farm, and makes the American farmer less dependent on 
foreign demand and price ; it diffuses general thrift, and founds 
the strength of all on the strength of each. In its reasonable 
application it is just, fair, and impartial ; equally opposed to 
foreign control and domestic monopoly, to sectional discrimina- 
tion, and individual favoritism. We denounce the present Demo- 
cratic tariff as sectional, injurious to the public credit, and de- 
structive to business enterprise. We demand such an equitable 
tariff on foreign imports which come into competition with 
American products as will not only furnish adequate revenue 
for the necessary expenses of the Government, but will protect 
American labor from degradation to the wage level of other 
lands. We are not pledged to any particular schedules. The 
question of rates is a practical question, to be governed by the 
conditions of the tfme and of production ; the ruling and uncom- 
promising principle is the protection and development of Ameri- 
can labor and industry. The country demands a right settlement, 
and then it wants rest. 

1900 

We renew our faith in the policy of Protection to Ameri- 
can labor. In that policy our industries have been established, 
diversified, and maintained. By protecting the home market 
competition has been stimulated and production cheapened. 
Opportunity to the inventive genius of our people has been 
secured and wages in every department of labor maintained 
at high rates, higher now than ever before, and always dis- 
tinguishing our working people in their better condition of life 
from those of any competing country. Enjoying the blessings 
of the American common school, secure in the right of self- 
government, and protected in the occupancy of their own mar- 
kets, their constantly increasing knowledge and skill have en- 
abled them to finally enter the markets of the world. We 
favor the associated policy of reciprocity so directed as to open 
our markets on favorable terms for what we do not ourselves 
produce in return for free foreign markets. 

1904 

Protection which guards and develops our industries, is 
a cardinal policy of the Eepublican party. The measure of 
protection should always at least equal the difference in tin 
cost of production at home and abroad. We insist upon the 
maintenance of the principle of protection, and, therefore 
rates of duty should be readjusted only when conditions have 
so changed that the public interest demands their alteration, 
but this work cannot safely be committed to any other hands 
than those of the Republican party. To intrust it to the Demo- 
cratic party is to invite disaster. Whether, as in 1892, the 
Democratic party declares the protective tariff unconstitu- 
tional, or whether it demands tariff reform or tariff revision, 
its real object is always the destruction of the protective sys- 
tem. However specious the name the purpose is ever the 



THE TARIFF— PARTY PLATFORMS ON. 143 

same. A Democratic tariff has always been followed by busi- 
ness adversity; a Republican tariff by business prosper ty. To 
a Kepublican Congress and a Kepublican President this great 
question can be safely intrusted. When the only free trade 
country among the great nations agitates a return to protec- 
tion the chief protective country should not falter in maintain- 
ing it. 

1908 
The Republican Party declares unequivocally for the revision 
of the tariff by a special session of Congress immediately follow- 
ing the inauguration of the next President, and commends the 
steps already taken to thHs end in the work assigned to the appro- 
priate committees of Congress which are now investigating the 
operation and effect of existing schedules. In all tariff legislation 
the true principle of protection is best maintained by the imj)o- 
sition of such duties as will equal the difference between the cost 
of production at home and abroad, together with a reasonable 
profit to American industries. We favor the establishment of 
maximum and minimum rates to be administered by the Presi- 
dent under limitations fixed in the law, the maximum to be avail- 
able to meet discriminations by foreign countries against Ameri- 
can goods entering their markets, and the minimum to represent 
the normal measure of protection at home, the aim and purpose 
of the Republican policy being not only to preserve, without ex- 
cessive duties, that security against foreign competition to which 
American manufacturers, farmers and producers are entitled, 
but also to maintain the high standard of living of the wage- 
earners of this country, who are the most direct beneficiaries of 
the protective system. Between the United States and the Philip- 
pines we believe in a free interchange of products with such limi- 
tations as to sugar and tobacco as will afford adequate protection 
to domestic interests. 



DEMOCRATIC TARIFF PLANKS. 

1856 

The time has come for the people of the United States to de- 
clare themselves in favor of free seas and progressive free 
trade throughout the world, and, by solemn manifestations, to 
place their moral influence at the side of their successful ex- 
ample. 

1860 

We, the Democracy of the Union, in convention assembled, 
hereby declare our affirmance of the resolutions unanimously 
adopted and declared as a platform of principles by the Demo- 
cratic Convention in Cincinnati in the year 1856, believing that 
Democratic principles are unchangeable in their nature when 
applied to the same subject-matters. 

1868 
A tariff for revenue upon foreign imports, and such equal 
taxation under the Internal Revenue laws as will aff?< rcl inci- 
dental protection to domestic manufactures, and as will, with- 
out impairing the revenue, impose the least burden upon and 
best promote and encourage the great industrial interests of the 
country. 

1872 
Recognizing that there are in our midst honest but irre- 
concilable differences of opinion with regard to the respective 
systems of protection and free trade, we remit the discussion 
of the subject to the people in the Congressional districts, and 
to the decision of the Congress thereon, wholly free from exe- 
cutive interference or dictation. 

1876 
We denounce the present tariff, levied upon nearly 1.000 
articles, as a masterpiece of injustice, inequality, and false 
pretense. It yields a dwindling, not. a yearly rising revenue. 



144 THE TARIFF— PARTY PLATFORMS ON. 

It has impoverished many industries to subsidize a few. It 
prohibits imports that might purchase the products of Ameri- 
can labor. It has degraded American commerce from the first 
to an inferior rank on the high seas. It has cut down the sales 
of American manufactures at home and abroad, and depleted 
the returns of American agriculture — an industry followed by 
half our people. It costs the people five times more than it pro- 
duces to the Treasury, obstructs the process of production, 
and wastes the fruits of labor. It promotes fraud, fosters 
smuggling, enriches dishonest officials, and bankrupts honest 
merchants. We demand that all custom-house taxation shall 
be only for revenue. / 

1880 
A tariff for revenue only. 

1884 
The Democratic party is pledged to revise the tariff in a 
spirit of fairness to all interests. But, in making the reduction 
in taxes, it is not proposed to injure any domestic industries, 
but rather to promote their healthy growth. From the founda- 
tion of this Government taxes collected at the custom-house 
have been the chief source of Federal revenue. Such they must 
continue to be. Moreover, many industries have come to rely upon 
legislation for successful continuance, so that any change of law 
must be at every step regardful of the labor and capital thus in- 
volved. The process of the reform must be subject in the execu- 
tion to this plain dictate of justice — all taxation shall be limited 
to the requirements of economical government. The necessary 
reduction and taxation can and must be effected without de- 
priving American labor of the ability to compete successfully 
with foreign labor and without imposing lower rates of duty 
than will be ample to cover any increased cost of production 
which may exist in consequence of the higher rate of wages 
prevailing in this country. Sufficient revenue to pay all the 
expenses of the Federal Government economically adminis- 
tered, including pensions, interest, and principal of the public 
debt, can be got under our present system of taxation from the 
custom-house taxes on fewer imported articles, bearing heav- 
iest on articles of luxury and bearing lightest on articles of 
necessity. We, therefore, denounce the abuses of the existing 
tariff, and, subject to the preceding limitations, we demand that 
Federal taxation shall be exclusively for public purposes, and 
shall not exceed the needs of the Government economically 
administered. 

1888 
Our established domestic industries and enterprises should 
not and need not be endangered by the reduction and correction 
of the burdens of taxation. On the contrary, a fair and careful 
revision of our tax laws, with due allowance for the tliffereuce 
between the wages of American and foreign labor, must promote 
and encourage every branch of such industries and enterprises 
by giving them assurance of an extended market and steady 
and continuous operations. In the interests of American labor, 
which should in no event be neglected, the revision of our tax 
laws contemplated by the Democratic party should promote the 
advantage of such labor by cheapening the cost of necessaries 
of life in the home of every workingman, and at the same time 
securing to him steady and remunerative employment. Upon 
this question of tariff reform, so closely concerning every phase 
of our national life, and upon every question involved in the 
problem of good government, the Democratic party submits its 
principles and professions to the intelligent suffrages of the 
American people. 

1892 
We denounce Eepublican protection as a fraud, a robbery of 
the great majority of the American people for the benefit of the 
few. We declare it to be a fundamental principle of the Demo- 
cratic party that the Federal Government has no constitutional 



THE TARIFF— PARTY PLATFORMS ON. 145 

power to impose and collect tariff duties, except for the pur- 
poses of revenue only; and we demand that the collection of 
such taxes shall be limited to the necessities of the Government 
when honestly and economically administered. We denounce 
the McKinley tariff law enacted by the Fifty-first Congress as 
the culminating- atrocity of class legislation ; we indorse the 
efforts made by the Democrats of the present Congress to modify 
its most oppressive features in the direction of free raw ma- 
terials and cheaper manufactured goods that enter into general 
consumption, and we promise its repeal as one of the beneficent 
results that will follow the action of the people in trusting 
power to the Democratic party. Since the McKinley tariff went 
into operation there have been ten reductions of the wages of 
the laboring man to one increase. We deny that there has been 
any increase of prosperity to the country since that tariff went 
into operation, and we point to the dullness and distress, to 
the wage reductions and strikes in the iron trade as the best pos- 
sible evidence that no such prosperity has resulted from the 
McKinley act. We call the attention of thoughtful Americans 
to the fact that after thirty years of restrictive taxes against 
the importation of foreign wealth in exchange for our agri- 
cultural surplus the homes and farms of the country have be- 
come burdened with a real estate mortgage debt of over two 
thousand five hundred million dollars exclusive of all other 
forms of indebtedness ; that in one of the chief agricultural 
States of the West there appears a real estate mortgage debt 
averaging $165 per capita of the .total population, and that 
similar conditions and tendencies are shown to exist in the 
other agricultural exporting States. We denounce a policy 
which fosters no industry so much as it does that of the sheriff. 

1896 
We hold that tariff duties should be levied for purposes of 
revenue, such duties to be so adjusted as to operate equally 
throughout the country and not discriminate between class or 
section, and that taxation should be limited by the needs of the 
Government honestly and economically administered. We de- 
nounce, as disturbing to business, the Eepublican threat to re- 
store the McKinley law, which has been twice condemned by 
the people in national elections, and which, enacted under the 
false plea of protection to home industry, proved a prolific 
breeder of trusts and monopolies, enriched the # few at the ex- 
pense of the many, restricted trade, and deprived the producers 
of the great American staples of access to their natural markets. 

1900 
We condemn the Dingley Tariff law as a trust-breeding 
measure, skillfully devised to give the few favors which they 
do not deserve and to place upon the many burdens which they 
should not bear. We reaffirm and indorse the principles of the 
National Democratic platform adopted at Chicago in 1896. 

1904 
The Democratic party has been, and will continue to be, 
the consistent opponent of that class of tariff legislation by 
which certain interests have been permitted, through Congres- 
sional favor, to draw a heavy tribute from the American peo- 
ple. This monstrous perversion of those equal opportunities 
Which our political institutions were established to secure has 
caused what may once have been infant industries to become 
the greatest combinations of capital that the world has ever 
known. These especial favorites of the government have, 
through trust methods, been converted into monopolies, thus 
bringing to an end domestic competition, which was the only 
alleged check upon the extravagant profits made possible by 
the protective system. These industrial combinations, by the 
financial assistance they can give, now control the policy of 
/ the Republican party. We denounce protectionism as a robbery 
of the many to enrich the few, and we favor a tariff limited to 
the needs of the Government, economically, effectively, and con- 
stitutionally administered, and so levied as not to discriminate 
f 



146 THE TARIFF— PARTY PLATFORMS ON. 

against any industry, class, or section to the end that the bur- 
dens of taxation shall be distributed as equally as possible. 

We favor a revision and a gradual reduction of the tariff 
by the friends of the masses and for the common weal, and not, 
by the friends of its abuses, its extortions, and its discrimina- 
tions, keeping in view the ultimate end of "equality of burdens 
and equality of opportunities" and the constitutional purpose 
of raising a revenue by taxation, to wit, the support of the Feder- 
al Government in all its integrity and virility, but in simpli- 
city. 

1908 

We welcome the belated promise of tariff reform now offered 
by the Eepublican party in tardy recognition of the righteous- 
ness of the Democratic position on this question ; but the 
people can not safely entrust the execution of this important 
work to a party which is so deeply obligated to the highly pro- 
tected interests as is the Eepublican party. We call attention to 
the significant fact that the promised relief is postponed until 
after the coming election — an election to succeed in which the 
Eepublican party must have ijhat same support from the bene- 
ficiaries of the high protective tariff as it has always hereto- 
fore received from them ; and to the further fact that during 
years of uninterrupted power no action whatever has been taken 
by the Eepublican Congress to correct the admittedly existing 
tariff iniquities. We favor the immediate revision of the tariff 
by the reduction of import duties. Articles entering into com- 
petition with trust-controlled products should be placed upon the 
free list, and material reduction should be made in the tariff 
upon the necessaries of life, especially upon articles competing 
with such American manufactures as are sold abroad more 
cheaply than at home ; and gradual reduction should be made in 
such other schedules as may be necessary to restore the tariff 
to a revenue basis. Existing duties have given to the manu- 
facturers of paper a shelter behind which they have organized 
combinations to raise the price of pulp and paper, thus imposing 
a tax upon the spread of knowledge. We demand the immediate 
repeal of the tariff on wood pulp, print paper, lumber, timber 
and logs, and that these articles be placed upon the free list. 



PETROLEUM DUTIES. 

The Countervailing 1 Duty on Petroleum — Originated in Demo- 
cratic Tariff Act. 

Much criticism has been made in recent years of the fact that 
the Dingley tariff law, so called, the law now in operation, places 
a duty on petroleum, or mineral oil, imported from countries 
which impose a duty on petroleum or its products exported from 
the United States ; and the charge has been made by the Demo- 
crats that this was placed in the Dingley Tariff Act at the in- 
stance of, or through the secret workings of, the Standard Oil 
Company. If this be true it merely illustrates the danger of 
accepting, even in a single instance, a precedent or plan es- 
tablished by the Democratic party, since this proposition of 
placing a countervailing duty on petroleum from countries which 
impose duties on like products from the United States first made 
its appearance in the Wilson tariff Act of 1894. The provisions 
of the Wilson and Dingley Acts upon this subject are given below" 
in parallel columns. 

Tariff Act of August 27, 1894. Tariff Act of July 24, 1897. 

(Wilson Tariff Act.) (Dingley Tariff Act.) 

"Petroleum, crude or refined, "Petroleum, crude or refined, 

free : Provided, That if there be im- free : Provided, That if there be im- 
ported into the United States crude ported into the United States crude 
petroleum produced in any country petroleum or the products of crude 
which imposes a duty on petroleum petroleum produced in any country 
or its products exported from the which imposes a duty on petroleum 
United States, there shall be levied, or its products exported from the 
collected and paid upon said crude United States, there shall in such 
petroleum or its products so im- cases be levied, paid, and collected 
ported, forty percentum advalorem." a duty upon said crude petroleum 

or its products so imported equal 
to the duty imposed by such coun- 
try." 



TEE TARIFF. 



147 



It will be noted by a careful examination of the above that 
the countervailing- duty proposition of the Ding-ley Act is pre- 
cisely that of the Wilson Act, except that the Wilson Act made 
the rate of duty 40 per cent irrespective of the rate enforced 
against American petroleum, while the Dingley act makes the rate 
of duty the same as that imposed upon our petroleum by the 
country from which the product is imported. 



Number and Average Price and Total Value of Sheep in tlie 
United State* in eacli year from 1880 to 1907. 

This table shows the number and total value of sheep in 
the United States in each year from 1880 to 1908 and the aver- 
age value per head on January 1 of the years named. It will 
be noted that the number, the value per head, and the total 
value fell steadily from January 1 during the entire Democratic 
and low tariff period ; the number falling from over 17 millions 
to less than 37 millions, the price per head, from $2.66 in 1893 to 
$1.58 in 1895 ; and the total value, from 125 million dollars in 
1893 to 65 millions in 1896 ; while with the restoration of pro- 
tection the number, price per head, and total value rapidly ad- 
vanced : the number in 1908 being 54y 2 millions, against less 
than 37 millions in 1896; the price per head, $3.89, against $1.70 
in 1896, and the total value 212 millions, against 65 millions in 
1896 ; the value of the sheep in the United States having thus 
more than trebled in the 12 years since the election of Mc- 
Kinley. 

[From report of Department of Agriculture.] 



Year 



January 1 
1880— 
1881— 
1882— 

1883— 
1881— 
1885... 
1886— 
1887— 
1888— 
1889— 
1S90— 
1891... 
1892— 
1893. __ 
189 1___ 
189 1— 
1896. __ 
1897— 

1898 

1899—. 
1900— 
1901... 
1902— 
1903... 
1901— 
1905— 
1906— 
1907— 
1908— 



Number 


Average 


Total 


of sheep. 


per head. 


value. 


40,765,900 


$2.21 


$90,230,537 


43,569,899 


2.39 


101,070,861 


45,016,221 


2.37 


106,595,954 


49,237,291 


2.53 


124,365,835 


50,626,626 


2.37 


119,902,706 


50,360,213 


2.14 


107,960,650 


48,322,331 


1.91 


92,413,867 


44,759,314 


2.01 


89,872,839 


43,514,755 


2.05 


89,279,926 


42,599,079 


2.13 


90,610,369 


44,336,072 


2.27 


100,659,761 


43,431,136 


2.50 


108,397,447 


41,938,305 


2.58 


116,121,290 


47,273.553 


2.G3 


125,909,264 


45,048,017 


1.93 


89,186,110 


42,291,034 


1.53 


66,GS5,767 


38,298,783 


1.70 


65,167,735 


36,818,643 


1.82 


67,020,942 


37,653,960 


2.46 


92,721,133 


39,114,453 


2.75 


107,697,530 


41,883.065 


2.93 


122,665,913 


59,756,718 


2.98 


178,072.476 


62,039,091 


2.65 


164,446,091 


63,961,876 


2.63 


168,315,750 


51,630,144 


2.59 


133,530,099 


45,170,423 


2.82 


127,331,850 


50,631,619 


3.54 


179,056,144 


53.240.2S2 


3.81 


201,210,129 


51,631,000 


3.88 


211,736,000 



Wholesnle Prices of Boots and Shoes, 1S07 to 1902. 

The purpose of this table is to give opportunity to de- 
termine whether an advance in prices of boots and shoes fol- 
lowed the enactment of the Dingley law. which placed a duty 
of 15 per cent on hides imported. It will be seen that after the 
Act had been four years in operation, prices were in many cases 
materially less than in the first week of 1897, and prior to 
the enactment of the Dingley law; that in certain cases prices 
in 1902 were unchanged, while some others showed but. a slight 
advance, indicating thai no general advance occtrrred in the price 
of boots and shoes by reason of the duty placed on hides l\v the 
Dingley law. vVhile prices advanced in later years coincident;! Ily 
with the advance in price of labor and materials, the fact that no 



148 



TEE TARIFF. 



advance occurred for four years after the imposition of the 
tariff on hides shows that that act did not affect home prices, 
but that recent advances are due to other causes. 






|S5 
I&3 



as© 






0> S3 O 



d ft© 

■=5 CO 






§ °° CO 



"flffl 

d'2 ® 
o> 5 s o 



ir3j>mj-~t-~mmmin(Niior~mmcNii^i^i^i-~t>.o 






# 3^ ^ ^ 

m lO U5 W m <>} w IA CO fM ifl 1>- t» W 
(Mi-lrH<M(MlMCNIO0ie<l(M(M<MCOCO 



CO M M M (M M M 
CNC<lCNCN<NCN<>3CNCNC<]C<lCNC<lC<lCNlCNieNCNCN 



iNNtSllSlONWC. 

icocNicocoeocccoeocoooeo 



^ 



# ^ 



lOiOM^lfiNNlONNflOOinONOMflW 

icoN«NCM(Mosi(NiMcvicsioo)-*rfc<5eoeoc«5CNe<5eo 



inooMAoNCoooobONicifliflNNic 



OOlOOONOONNlMMNOaiNL'MBNNl 
l-tr-fOrHr-IOiHi-IOOi-lrHrHCMrHrHiHl-liHi-lr 



OlCIlOlCJOlOiOOlOiOlC^QOOOlOiCSoJOlwOJ 



tHi— I r-t rH rH tH r-l rH i— IHr IHINNHr- IHHHHr- 1 



OOOiOOCiOOOlOSOOr-lrHOOOOOOO 



d ^r?^ d ^r?^ a £,£+> d %2^ « ^i3^ 



Coal Production in the United Kingdom, Germany and the 
United States. 

This table, showing the coal production and consumption in 
free trade United Kingdom and protective Germany and the 
United States from 1875 to 1906, is given with the purpose of 
indicating the relative growth of industries in the two countries 
under protective tariffs compared with that of free trade United 
Kingdom. It will be seen that the consumption of coal in free 
trade United Kingdom grew from 115 million tons to 174 mil- 



TEE TARIFF. 



149 



lions ; in protective Germany, from 47 million tons to 189 mil- 
lions ; and in protective United States, from 48 millions to 359 
millions in the period under consideration. 

Coal production and consumption in the United Kingdom, Ger- 
many, and the United States, for the years named. 





United Kingdom. 


Germany. 


United States. 


Years. 


Produc- 
tion 
in gross 
tons of 
2,240 lbs. 


Con- 
sumption 
in gross 
tons of 
2,240 lbs. 


Produc- 
tion 
in gross 
tons of 
2,240 lbs. 


Con 

sumption 

in grohs 

ton< of 

2,240 lbs. 


Produc- 
tion 
in gross 
tons of 
2,240 lbs. 


Con- 
sumption 
in gross 
tons of 
2,240 lbs* 


1875 

1880 

1885 

1890 

1895 

1900 

1901 

1902 

1903 

1904 

1905 

1906 


133,306,000 
146,969,000 
159,351,000 
181,614,000 
189,661,000 
225,181,000 
219,047,000 
227,095,000 
230,334,000 
232,428,000 
236,129,000 
251,068,000 


115,304,000 
123,067,000 
128,585,000 
142,954,000 
146,754,000 
166,776,000 
161,264,000 
166,694,000 
166,529,000 
166,605,000 
168,968,000 
174,279,000 


37,049,000 

58,185,000 

72,513,000 

87,881,000 

102,317,000 

147,423,000 

150,603,000 

118,222,000 

153,892,000 

166,775,000 

171,087,000 

190,482,000 


46,810,000 
56,102,000 
69,612,000 
89,364,000 
104,204,000 
147,439,000 
149,736,000 
146,436,000 
157,250,000 
163,773,000 
170,248,000 
188,626,000 


46,739,000 
63,823,000 
99,250,000 
140,867,000 
172,426,000 
240,789,000 
261,875,000 
269,277,000 
319,068,000 
314,122,000 
350,615,000 
369,783,000 


47,892,000 
60,670,000 
108,832,000 
125,117,481 
149,901,000 
221,067,000 
256,374,000 
266,143,000 
312,009*000 
306,136,000 
342,571,000 
359,131.000 



* Inclusive of bunker coal laden on vessels in the foreign trade. 

Note.— The amount of British bunker coal loaded on vessels in the foreign 
trade not found prior to 1875. 



Trade Balances -under Protective and Low Tariffs, 
Respectively, 179O-1908. 

This table shows the excess of exports or imports in the 
trade of the United States in each year from 1789 to date, 
all years in which low tariffs were in operation being- shown in 
one column and all those in which protective tariffs were in 
operation shown in another column. In 49 of the 60 years 
of low tariffs imports exceeded exports, and the net excess of 
importations under low tariffs from 1790 to date was $514,954,941. 
In 36 of the 59 years of protective tariffs exports exceeded im- 
ports, the net excess of exports under protective tariffs being' 
$5,933,348,822, against a net excess of imports under low tariffs 
of $514,954,941. The excess of exports over imports in the fiscal 
year 1908 was the largest in the history of our commerce. 

Attention is especially called to the brief statement which 
immediately follows this table, comparing the net excess of ex- 
ports over imports in the 11 years since the inauguration of Presi- 
dent McKinley with the 109 years prior to his inauguration. It will 
be seen that the net excess of exports over imports from 1790 
to March 1, 1897, toas $383,028,497, and the net excess of exports 
over imports from March 1, 1897, to March 1, 1908, is $5,550,550,- 
773, or more than 14 times in the 11 years from 1897 to 1908 as 
much as in the entire 109 years preceding that date. 



I believe in the doctrine of protection because the facts 
of onr national experience thoroughly exemplify its truth. 
Xo great American statesman, except the half-forgotten 
leaders of the slave power, have disowned the protective 
system. — Hon. J. P. Dolliver, in the American Economist. 

If we assume control over a people merely in the spirit 
of conquest and merely to extend our control and merely 
from the lust of power, then we may he properly denounced 
as imperialists; hut if we assume control over a people for 
the benefit of that people and with the purpose of develop- 
ing- them to a self-governing capacity, and with the inten- 
tion of giving - them the right to become independent "when 
tbey shall show themselves fit, then tbc charge that -we are 
Imperialists is utterly without foundation. — Hon. Wm. H. Taft, 
at Cleveland, Ohio. 



One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT8 
ELECTION.— New York World. 



150 



THE TARIFF AND TRADE BALANCE. 



Trade Balances Under Protection and Low Tariff, 
N Respectively, 1790-1908. 

Years in which low tariffs and protective tariffs, respectively, 
have teen in operation in the United States, showing theexce;* 
of imports or exports in each year and the total excess of im- 
ports or exports under each system. 

[Complied from official statements of the Bureau of Statistics.] 





Low Tariffs. 


Fiscal Year. 


Protective Tariffs. 


Fiscal Year. 


Excess of 
imports. 


Excess of 
exports. 


Excess of 
imports. 


Excess of 
exports. 


1790 _ _- 


$2,794,8-44 

10,187,959 

10,746,902 

4,990,428 

1,550,275 

21,766,396 

22,861,539 

24,084,096 

7,224,289 

403,626 

20,280,998 

18,342,998 

4,376,189 

8,866,633 

7,300,926 

25,033,979 

27,873,037 

30,156,850 

34,559,040 

7,196,767 

18,642,030 




1813 




$5,851,017 


1791 




1811 

1815 

1816 

1825 


$6,037,559 
60,483,521 
05,182,948 


1792 _. _ - 






1793 _ 






1794 




519,023 


1795 




1826 

1827__ 


5,202,722 


1796 




2,977,009 


1797 




1828 

1829 


16,998,873 


1798 




345,736 

8,949 779 


1799 _ 




1830— 




1800 




1831 

1832 _. 

1833 

1843 


23,589,527 
13,001,159 
13,519,211 




1801 






1802 






1803 




40,392,225 


1804 




1814 




3,141,226 


1905 




1845 

1846*_„ 

1862 


71,44,211 
41,65,409 




1806 






1807 




1,313,824 


1808 — 




1863 

1864 

1865 

1866. v - 

1867- _. 

1868 

1869 _,_ 

1870 

1871 

1872 

1873 

1874 


39,371,368 
157,009,295 
72,710,277 
85,952,544 
101,254,955 
75,483,541 
131,388,682 
43,186,640 
77,403,506 
182,417,461 
119,656,288 




1809 






1810 






1811 


$7,916,832 




1812 


38,502,761 
11,578,431 
28,468,867 
16.982,479 
4,758,331 




1817 






1818 






1819 






1820 






1821 


75,489 




1822. 


18,521,594 

4,155,328 

3,197,067* 

6,349,485 

21,548,493 

52,240,450 

19,029,676 




1823 




18,876,698 


1824 




1875 

1876 


19,562,725 




1834 




79,643,481 
151,152,094 


1835 




1877— 




1836 




1878 




257,814,234 


1837 




1879 




264,601,666 


1838 


9,008,282 


1880 




167,683,912 


1839 


44,245,283 


1881 




259,712,718 


1840 


25,410,226 


1882 




25,902,683 


1841 


11,140,073 


1883 




100,658,488 


1842__ 


3,802,924 


1884 




72,815,916 


1846— 


4,165,408 


1885 




164,662,426 


1847 


34,317,249 


18S6 




44,088,694 


1848 


10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,700,030 
38,899,205 
29,212,887 
54,604,582 


1887 




23,863,443 


1849 


1888 

1889 

•1890 


28,002,607 
2,730,297 




1850__ 






1851 ' 




68,518,275 
39; 56 4 ,614 


1852 




1891 




1853 




1892 




202,875,680 


1854 




1893 

1891 


18,735,728 




1855- __ 




237,145,950 


1856 




1898 




615,432,676 


1857— 




1899 




529,874,813 


1858— 


8,672,620 


1900 




544,541,808 


1859 


38,431,290 
20,0 tO. 062 
69,756,709 


1901 




664,592,826 


1860 




1902 




478,398,453 


1861 _ 




1903 




394,422,442 


1895 


75,568,200 
102,882,264 
286,263,144 


1904 




469,739,900 


1896 




1905 




401,048,595 


1897 




1906 




517,302.051 






1907_ __ 




446,429,653 




1908— 




666,431,554 










Total— 


1,008,872,171 


553,917,230 


Total 


1,371,397,654 


7,971,375,681 



Excess of Imports Under Low Tariff, and Excess of Exports 
Under Protection. 

Not excess of imports under low tariffs $514,954,941 

Net excess of exports under protective tariffs 6,599,978,021 

Net excess of exports over imports from 1789 to March 1, 1897—.. 383,028,497 
Net excess of exports over imports from March 1, 1897, to March 

1, 1908 5.550.650.778 



THE TARIFF AND REVENUE. 



151 



Surplus or Deficit under Low and. Protective Tariffs. 
Respectively, from 1790 to 1907. 

This table shows the deficit or surplus of revenue in each year 
from 1790 to date, the years in which low tariffs existed being- 
stated in one column and those in which protective tariffs ex- 
isted in another column. It will be noted that protective tariffs 
have produced a surplus of revenue in practically every year 
except those of war periods or some other extraordinary expendi- 
tures such as the Panama canal. The deficit of the fiscal year 
1908, while due in part to the heavy expenditures including the 
Panama canal, is chiefly the result of the unexpected falling off 
in importation of dutiable articles (and therefore of customs re- 
ceipts), the result of the financial depression beginning with Oc- 
tober, 1907. It will >e noted that deficits occurred in 24 of the 
57 years in which low tariffs were in existence and in but 15 of 
the 60 years of protection, and that nearly all these Avere war 
years. 

Tariffs and Revenues, 1790 to 1907. 

Tears in which low tariffs and protective tariffs, respectively, 
have J)een in operation in the United States, showing the 
excess of expenditures or receipts of the Government in each 
year. 
[Compiled from official statements of the Treasury Department.] 



Low tariffs. 




Protective tariffs. 


Fiscal year— 


Deficit. 


Surplus. 


Fiscal year— 


Deficit. 


Surplus. 


1791 




$1,312,499 


1813.— 

1814 


$17,341,442 
23,539,300 
17,240,744 


) TXT 


1792 


$4,599,900 


( War pe- 


17:)3 


805,993 


1815 


f riod. 


1794 


865,917 
1,195,066 


1816 


$16,480,630 
5,983,640 
8,222,575 


1795 _ 




1825 




1796 


2,586,879 

2,680,154 

292,909 


1826 




1797 __ 




1827 




6,827,198 
8,369,087 
9,643,574 
9,702,008 
13,289,004 


1798 .— 




1828 




1799 


1,749,004 


1829 




1800 


34,778 
3,541,831 
7,019,542 
3,111,811 
3,188,399 
4,546,344 
6,110,753 
8,043,868 
7,999,249 


1830 




1801— 




1831 




1802 




1832 




14,578,500 


1803 




1833 




10,930,874 


1804 — 




1843 

1844 


3,549,091 




1805 




6,837,148 


1S06-— _ 




1845 




7,034,278 


1897__ 




1846 (half year) 
1S62 _ 




1,214,392 


1808 




417,650,981 
(506,6:39,331 
621,556,130 
973,068,131 


1809__ 


2,507,273 


1863 _ 


I War pe- 


1810 


909,461 
6,244,594 


1864 


1811 




1865 _ 




1812 


10,479,638 


1866 


927,208 

116,317,354 

6,095,320 

35,997,658 

102,302,823 


1817 


13,108,157 
1,566,543 
3,091,370 


1867 




1818 




1868 

1869 




1819_ 




1820 


44,685 
1,276,173 


1870 — _ 




1821 




1871 




91,270,711 


1822 _ 


5,231,996 
5,834,036 


1872 




94,134,534 
36, 938, 3 J 8 


1823 




1873 




1824 


892,489 


1874 


1,2*, 799 


1834___ 


3, 164., 365 
17,857,274 
19,958,632 


1875 


9,397,379 


1835 




1876 




24,965,500 
39.666,167 
20,482,449 


1836 




1877 




1837- — 


12,289,061 
7,562,152 


1878 




1838 




1879 




5,374,253 


1839 _ 


4,585,967 


1880 




68,678,864 
101,130,658 
145,543,811 
132,879,444 


1840 


4,834,402 
9,621,657 
5,158,689 


1881 — 




1841 




1882 




1842 




1883 




1846 (half year) 

1847 _ 


1,219,392 

! War pe- 
j riod. 

2,6 44,506 
4,803,561 
5,456; 583 
13,843.043 
18,761,986 
6,719,912 
5,330,349 
1,330,904 


188 4 




104 393 626 


28,453,331 
11,919,521 
12,778,001 


1885 




63,463,775 


1848 


1S86 




93,956,589 


1849 


1887 . 




103,471,098 
119,612,116 


1850 


1888 




1851 




1889 




105,053,443 


1852 




1S90 




105,344,496 


1853 •'_ 




1891 




37,239,763 


1S.5 4 




1892 " 




9,914, 454 


1855 




1893 . 




2,341,674 


1S56 . 




1894 


69;80f*,261 

38.017.2 47 
89. 111,560 




1897 




1898 


) War pe- 
1 riod. 

79,536,060 


1858 


27,327,126 
16,216,492 
7, 146, 276 
25,173,914 
42,895,223 

18,052,455 


1899 


1859 




1900 


I860 




1901 




77,717,984 


1861 




1902 




91,287,376 


1895 




1903 . 




54,297,667 


18 >') 




liHH . 


41,770.571 

•.'3,004,228 




1897 




1905 - 






1908 


25, 66!), 322 




1907 




8 4.236, 586 




1908-. __ 


59,650,362 











152 



THE TARIFF— COMMERCE UNDER. 



Table No. 1 — Total value of imports and exports into and from 
the United States from Octooer 1, 1789, to June 30, 1907, 
under low and protective tariffs, respectively. 



"3 ° 


Fiscal 
year. 


Merchandise. 


Fiscal 
year. 


g 


Imports. 


Exports. 


Excess of 
imports. 


Excess of 
exports. 


03 




(-1790,. 
1791— 

1792.. 

- 1793. . 

1794. _ 

1795— 

1796.. 

(-1797.. 

1798.. 

* 1799— 

1800- 

'1801— 

1802— 

1803— 

1804.. 

1805. _ 

1806.. 

1807— 

.1808— 

fl809„ 

1810— 

1811__ 

1812.. 

1813— 

1814— 

1815— 

. 1816— 

'1817— 

1818— 

1819- 

, 1820.. 

1821.. 

1822. _ 

1823— 

Ll824__ 

'1825— 

, 1826— 

1827— 

U828— 

'1829— 

1830.. 

1831— 

1832— 

1833— 

1834— 

1835— 

.1836— 

1837— 

1838— 

1839. . 

1*1810— 

[1841— 

1842.. 

I 1843.. 

U844__ 

fl845- 

J 1846.. 

] 1847— 

Ll848_. 

fl849„ 

J 1850— 

1851— 

tl852- 

rl853— 

1 1854.. 

1 1855.. 

Il856_. 

rl857— 

1858— 

1859- 

1860. _ 

fl861__ 

1862.. 

1863. _ 

1864- 

1865— 

1866— 

1867- 

1868- 

fl869— 

1870.. 

1871— 

1872.. 

1873- 

1874.. 

1875- 

.1876— 


$23,000,000 

29,200,000 

31,500,000 

31,100,000 

34,600,000 

69,756,268 

81,436,164 

75,379,406 

68,551,700 

79,069,148 

91,252,768 

111,363,511 

76,333,333 

64,666,666 

85,000,000 

120,600,000 

129,410,000 

138,500,000 

56,990,000 

59,400,000 

85,400,000 

53,400,000 

77,030,000 

22,005,000 

12,965,000 

113,041,274 

147,103,000 

99,250,000 

121,750,000 

87,125,000 

74,450,000 

54,520,834 

79,871,695 

72,481,371 

72,169,172 

90,189,310 

79,093,511 

71,332,938 

81,020,083 

67,088,915 

62,720,956 

95,885,179 

95,121,762 

101,017,943 

108,609,700 

136,761,295 

176,579,154 

130,472,803 

95,970,288 

156,496,956 

98,258,706 

122,957,544 

96,075,071 

42,433,464 

102,604,606 

113,184,322 

117,914,065 

122,424,349 

148,638,644 

141,205,199 

173,509,526 

210,771,429 

207,440,398 

263,777,265 

297,803,794 

257,808,708 

310,432,310 

384,428,342 

263,338,654 

331,333,341 

353,616,119 

289,310,542 

189,3.56,677 

243,335,815 

316,447,283 

238,745,580 

434,812,066 

395,761,096 

357,436,440 

417,506,379 

435,958,408 

520,223,684 

626,595,077 

642,136,210 

567,406,342 

533,005,436 

460,741,190 


$20,205,156 

19,012,041 

20,753,098 

26,109,572 

33,043,725 

47,989,872 

58,574,625 

51,294,715) 

61,327,411 

78,665,522 

70,971,780 

93,020,513 

71,957,144 

55,800,033 

77,699,074 

95,566,021 

101,536,963 

108,343,150 

22,430,960 

52,203,233 

66,757,970 

61,316,832 

38,527,236 

27,856,017 

6,927,441 

52,557,753 

81,920,052 

87,671,569 

93,281,133 

70,142,521 

69,691,669 

54,596,323 

61,350,101 

68,326,043 

68,972,105 

90,738,333 

72,890,789 

74,309,947 

64,021,210 

67,434,651 

71,670,735 

72,295,652 

81,520,603 

87,528,732 

102,260,215 

115,215,802 

124,338,704 

111,443,127 

104,978,570 

112,251,673 

123,668,932 

111,817,471 

99,877,995 

82,825,689 

105,745,832 

106,040,111 

109,583,248 

156,741,598 

138,190,515 

140,351,172 

144,375,726 

188,915,259 

166,984,231 

203,489,282 

237,043,764 

218,909,503 

281,219,423 

293,823,760 

272,011,274 

292,902,051 

333,576,057 

219,553,833 

190,670,501 

203,964,447 

158,837,988 

166,029,303 

348,859,522 

294,506,141 

281,952,899 

286,117,697 

392,771,768 

442,820,178 

444,177,586 

522,479,922 

586,283,040 

513,442,711 

540,384,671 


$2,794,884 

10,187,959 

10,746,902 

4,990,428 

1,556,275 

21,766,396 

22,861,539 

24,084,696 

7,224,289 

403,626 

20,280,988 

18,342,998 

4,376,189 

8,866,633 

7,300,926 

25,033,979 

27,873,037 

30,156,850 

34,559,040 

7,196,767 

18,642,030 




1790.. 

1791— 

1792- 

1793— 

1794— 

1795— 

1796. _ 

1797- 

1798- 

1799- 

1800— 

1801.. 

1802— 

1803.. 

1804.. 

1805— 

1806- 

1807— 

1808.. 

1809— 

1810.. 

1811— 

1812.. 

1813.. 

1814— 

1815— 

1816— 

1817.. 

1818— 

1819- 

1820. . 

1821. _ 

1822— 

1823— 

1824. . 

1825- 

1826- 

1827- 

1828- 

1829— 

1S30— 

1831— 

1832.. 

1833— 

1834.. 

1835— 

1836.. 

1837.. 

1838— 

1839.. 

1840— 

1841— 

1842.. 

1843- 

1844.. 

1845— 

1846- 

1847— 

1848- 

1849— 

1850. 

1851— 

1852.. 

1853— 

1854— 

1855- 

1856- 

1857— 

1858— 

1859.. 

I860.. . 

1861— * 

1862.. 

1863— 

1864- 

1865— 

1866— 

1867— 

1868— 

1869.. 

1870— 

1871- 

1872— 

1873— 

1874- 

1875— 

1876- , 


^ 


bo 






a . 






2 2 















• 






a 






<S 






< 










I o3 






H 1 


o 

CO 




u 

o 




.<» 






to 






CD 



















a 


$7,916,832 




ce 


38,502,764 




•O 


5,851,017 


* © 


« 


6,037,559 
60,483,521 
65,182,948 
11,578,431 
28,468,867 
16,982,479 

4,758,331 


6> 


% 


""»• 




© 





. 






L ^ 


s 


75,489 




o 


18,521,594 
4,155,328 
3,197,067 









549,023 




a 


5,202,722 


> 




2,977,009 


< 


16,998,873 


l « 




345,736 
8,949,779 






o 
u 


o 

DQ 


23,589,527 
13,601,159 
13,519,211 
6,349,485 
21,548,493 
52,240,450 
19,029,676 


M 






c3 


---------- 




9,008,282 


CQ 


44,245,283 
~ll~i40~073~ 


a 


25,410,226 




Si— 


3,802,924 
40,392,225 
3,141,226 


4^ 




7,144,211 
8,330,817 


f*i 


^ 




o ■ 


34,317,249 


[1 


Hi 
i" » 


10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54,604,582 


° 1 













o5 






o 




^ 


<D • 




r o 

^3 


s 




. d 

3 2 






8,672,620 




wS - 


38,431,290 
20,040,062 
69,756,709 




,H 












. 


1,313,824 




flfl 


39,371,368 

157,609,295 

72,716,277 

85,952,544 

101,254,955 

75,483,541 

131,388,682 

43,186,640 

77,403,506 

182,417,491 

119,656,288 




'd£ 









o5 


^ 





> 






r s 






o 


d 

S3 . 





a, 





18,876,698 






19,562,725 






79,643,481 





TEE TARIFF— COMMERCE UNDER. 



133 



Table No. 1 — Total value of imports and exports into and from 
the United States from October 1, 1189, to June SO, 1907, 
under low and protective tariffs, respectively — Continued. 





Fiscal 
year. 


Merchandise. 


Fiscal 
year. 


A 





Imports. 


Exports. 


Excess of 
imports. 


Excess of 
exports. 




CO 


ri877— 
1 1878- 
i 1879. . 
Il880__ 
fl881„ 

1882. _ 
S 1883— 
I 1884— 
rl885__ 

1886— 
-\ 1887- 

1888— 
>1889__ 

1890— 
1 1891. . 

1892— 
fl893- 
1 1894— 
i 1895- 

1896— 

1897- 
. 1898- 

1899- 
.1900— 

1901- 

1902, . 

1903— 
, 1904- 

1905— 

1906- 

1907- 
U908- 


451,323,126 
" 437,051,532 

445,777,775 
667,954,746 
642,664,628 
724,639,574 
723,180,914 
667,697,693 
577,527,329 
635,436,136 
692,319,768 
723,957,114 
745,131,652 
789,310,409 
844,916,196 
827,402,462 
866,400,922 
654,994,622 
731,969,965 
779,724,674 
764,730,412 
616,049,654 
697,148,489 
849,941,184 
828,172,165 
903,320,948 
1,025,719,237 
991,087,371 
1,117,513,071 
1,226,562,446 
1,434,421,425 
1,194,341,792 


602,475,220 

694,865,766 

710,439,441 

835,638,658 

902,377,346 

750,542,257 

823,839,402 

740,513,609 

742,189,755 

679,524,830 

716,183,211 

695,954,507 

742,401,375 

857,828,684 

884,480,810 

1,030,278,148 

847,665,194 

892,140,572 

807,538,165 

882,606,938 

1,050,993,556 

1,231,482,330 

1,227,023,302 

1,394,483,082 

1,487,764,991 

1,381,719.401 

1,420,141,679 

1,460,827,271 

1,518,561,666 

1,743,864,500 

1,880,851,078 

1, §60,778, 346 




151,152,904 
257,814,234 
264,661,666 
167,683,912 
259,712,718 

25,902,683 
100,058,488 

72,815,916 
164,662,426 

44,088,694 

23,863,443 


1877__ 

1878- 

1879— 

1880— 

1881— 

1882- 

1883— 

1884— 

1885- 

1886— 

1887— 

1888— 

1889— 

1890— 

1891— 

1892— 

1893- 

1894- 

1895— 

1896— 

1897— 

1898— ■ 

1899— 

1900- 

1901- 

1902— 

1903— 

1904— 

1905— 

1906— 

1907- 

1908- . 




>> 
g3 










a 




0> 








"3 => 




■U 


"S* 




r ° 


co^ 




o 


t* 

&% 




& 








o~ 


28,002,607 
2,730,277 




. 


""* 


]> 




68,518,275 

39,564,614 

202,875,686 




1 2- 




iCui o 


• . 


18,735,728 


H'fl 




237,145,950 
75,568,200 
102,882,264 
286,263,144 
615,432,676 
529,874,813 
544,541,898 
664,592,826 
478,398,453 
394,422,442 
469,739,900 
401,048,595 
517,302,054 
446,429,653 
664,431,554 


J 





\'i 


>> 




f h4 


£■3 






Bid 






w 




• 






> 


43 






<o 




© 


> 




o 


W 




O 




Ph 


PS 







, 






Total.,.. 


40,243,189,595 


46,328,278,311 




8,085,088,716 
















Protection, steadily enlarges the home market for farm 
products.— Hon. L. R. Casey. 

■<& 

I am a protectionist because our country has prospered 
with protection and languished without it.— Hon. B. F. Jones, 
in the American Economist. 

As a result in a large degree of our protective tariff sys- 
tem, the United States has become one of the foremost na- 
tions of the world.— Hon. S. M. Cullom. 

The present business system of the country rests on the 
protective tariff and any attempt to change it to a free 
trade basis will certainly lead to disaster.— Hon. Wm. H. Taft, 
at Columbus, Ohio. 
> 

The Republican priciple of the protective tariff is, as 
I understand it, that through the customs revenue law a 
tariff should be collected on all imported products that 
compete with American products, which will at least equal 
a difference in the cost of production in this country and 
abroad, and that proper allowance should be made in this 
difference for the reasonable profits to the American manu- 
facturer.— Hon. Wm. H. Taft, at Columbus, Ohio. 

We shall continue our American system of Protection 
developed and perfected by the Republican party. We shall 
continue to raise a large portion of our revenues and at 
the same time protect our labor and industries by adequate 
and equitable duties on competing imports. We shall con- 
tinue to maintain the highest wage , scale on earth and 
keep our standard of living the best of all nations through 
the home market that is, and I believe always will be, the 
envy of the civilized -world. — Hon. James S. Sherman. 

Under our policy of free trade we have lost that com- 
mercial and industrial superiority we acquired under the 
policy of strict protection. Our policy of direct taxation 
bears heavily upon our industries and reacts on the work- 
ing classes in reduction of -wages and employment. Our 
agriculture has been ruined and our industries are strug- 
gling hard for existence. Other nations, under a policy of 
strict protection, are beating us in the race of competition, 
not only in neutral, but in our own markets. — Sir Guilford 
L. Moles-worth on Free Trade in England. 

One -vital, dominating fact confronts the Democratic 
party -which no oratory, which no eloquence, which no 
rhetoric can obscuret BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



184 



THE TARIFF AND REVENUE. 



Receipts and expenditures of the United States Government from 
1191 to 1907. 

[Prom official reports of the United States Government. 1907.] 



BUS 












Hh 



Year 

ending 

Dec 

31— 



791.. 

792.. 
793- 
794.. 
795- 

796. _ 

797. . 
798.. 
798.. 
800— 
801— 
802.. 
803.. 
804.. 
805- 
806— 
807.. 
808- 
809„ 
810- 
811- 

812- 
813- 
814- 
815- 
816- 

817- 
818- 
819. . 
820.. 
821— 
822.. 
823— 
824.. 

825— 
820— 
827- 
828- 
829— 
830— 
831— 
S32„ 
833.. 

834„ 
835- 
836— 
837— 
838— 
839- 
840- 
841- 
842.. 



843* 

844. 
■845. 
846. 

847. 
848. 
849. 
850. 
851- 
S52_ 
853. 

m: 

855- 
856. 
857. 
858. 
85!). 
860- 
861- 



L862 

LS63 

L864 

L865 

.866— 

.867 

l868— 
L869 



Total net 

ordinary 
receipts. 



$4,409 

3,669 

4,652 

5,431 

6,114 

8,377 

8,688 

7,900 

7,546 

10,848 

12,935 

14,995. 

11,064 

11,826 

13,560 

15,559 

16,398 

17,060 

7,773 

9,384 

14,222. 



951.19 
960.31 
923.14 
904.87 
534.59 
529.65 
780.99 
4^5.80 
813.31 
749.10 
330.95 
7^.95 
097.63 
307.38 
693.20 
931.07 
019.26 
661.93 
473.12 
214.28 
634.00 



9,801,132.76 
14,340,409.95 
11,181,625.16 
15,696,916.82 
47,676,985.66 

33,099,049.74 
21,585,171.04 
24,603,374.37 
17,840,669.55 
14,573,379.72 
20,232,427.94 
20,540,666.26 
19,381,212.79 



21,840 
25,260 
22,966 
24,763 
24,827 
24,814 
28,526 
31,867 
33,948 

21,791 
35,430 
50,826 
24,954 
26,302 
31,482 
19,480 
16,860 
19,976 



,858.02 
,434.21 
,363.96 
,929.23 
,627.38 
,116.52 
,820.82 
,450.66 
,426.23 

,935.55 
,087.10 
,796.08 
,153.04 
,561.74 
,749.61 
,115.33 
,100.27 
,197.25 



8,231,001.26 
29,320,707.78 
29,970,105.80 
29,699,967.74 



26,467 
35,698 
30,721 
43,592 ; 
52,555, 
49,846 
61,587; 
73,800 
65,350 
74,056 
68,965, 
46,655, 
52,777, 
56,05t, 
41,476, 



403.16' 

699.21 
077.50 
888.88 
039.33 
815.60 
031.68 
341.40 
574.68 
699.24 
312.57 
365.96 
101.92 
599.83 
299.49 



51,919,261.09 
112,094,945.51 
243,412,971.20 
322,031,158.19 
519,949,564.38 
462,81-6,679.92 
376,434,453.82 
357,188,256.09 



Total net 

ordinary 

expenditures. 



$3,097 
8,289 
3,846 
6,297 
7,309 
5,790 
6,008 
7,607 
9,295 

10,813 
9,393 
7,976; 
7,952 
8,637 

9,014; 

9,449 
8,354 
9,061 
10,280, 
8,474, 
8,178, 



425.55 
860.75 
929.90 
822.01 
600.78 
650. S3 
627.25 
586.32 
818.13 
971.01 
499.96 
252.07 
286.60 
907.65 
348.81 
177.62 
151.37 
413.06 
747.04 
753.37 
010.43 



20,280,771.27 
31,681,852.14 
34,720,925.42 
32,943,661.24 
31,198,355.92 

19,990,892.47 
20,018,627.81 
21,512,004.00 
18,285,531.89 
15, 8 19, 552. 86 
15,000,432.30 
14,706,629.99 
20,273,702.64 



15,857 
17,037 
16,139 
16,394 
15,184 
15,142 
15,237 
,17,288 
23,017 

18,027 
17,572 
30,868 
37,243 
33,861 
26,896 
24,314 
26,481 
25,134 



217.34 

859.22 
167.16 
842.05 
053.63 
,108.26 
,816.64 
,950.27 
,551.98 

,570.23 
,813.36 
,164.04 
,214.24 
,714.56 
,782.62 
,518.19 
,817.84 
,886.44 



11,780,092.51 
22,483,560.14 
22,935,827.79 
27,261,182.86 



54,920 

47,618. 
43,499. 
40,948, 
47,751 
44,390, 
47,743, 
55,038, 
58,630, 
68,726, 
67,631, 
73,982, 
68,993; 
63,200, 
66,650, 



734.09 
220.65 
078.30 
383.12 
478.41 
252.36 
989.09 
355.11 
662.71 
350.01 
408.93 
492.84 
599.77 
875.65 
213.08 



469,570,241.65 
718,734,276.18 
884,909,100.83 
,295,099,289.58 
519,022,356.34 
346,729,325.78 
370,339,133.82 
321,190,597.75 



Excess of 
receipts. 



$1,312,498.64 
"""805^993 J24' 



2,586,878.82 

2,680,153.71 

292,909.48 



34,778.09 
3,541,S30.99 
7,019,511.88 
3,111,811.03 
3,188,399.73 
4,516,314.36 
6,110,753.45 
8,013,867.89 
7,999,248.87 



909,460.91 
i, 044, 593. 66 



16,480,629.74 

18,108,157.27 
1,566,513.23 
3,091,370.37 



5,231,995.61 
5,834,036.27 



5,983,640.68 
8,222,574.99 
6,827,196.80 
8,389,087.18 
9,643,573.75 
9,702,008.25 
13,289,004.18 
14,578,500.39 
10,930,874.27 

3,164,365.32 

17,857,273.74 
19,958,632.01 



4,585,966.99 



6,837,117.64 
7,034,278.01 

2.438,784.88 



2,644,505.76 
4,803,580.92 
5,456,533.24 
13,843,012.59 
18,761,986.29 
6,719,911.97 
5,330,349.23 
1,330,903.64 



927,208.01 

116,117,351.14 

6,095,320.00 

35,997,658.34 



Excess of 
expendi- 
tures. 



$1,599,900.41 



865,917.17 
1,195,066.19 



1,749,004.82 



2,507,273.92 



10,479,638.51 
17,341,442.19 
23,539,300.25 
17,246,744.42 



444,865.34 
1,276.173.14 



892,489.85 



12,289,061.20 
7,562,152.82 



4,834,402.86 
9,621,657.57 
5,158,689.19 

3,549,091.25 



28,453,330.93 
11,919,521.44 
12,778,000.89 



27, 327, 126. 83 

16,216,491.85 

7,146,275.82 

25,173,913.59 

417,650,980.56 
606,639,330.67 
621,55'J,12J.63 
973,068,131.39 



TEE TARIFF AND REVENUE. 



Ifi5 



Receipts and expenditures of the United States Government from 
1791 to 1907— Continued. 



, . 


1 Year 


"2 «s d 


ending 


Dec. 
31— 




1870.— 




1871 


*jj 


1872 


1 


1873 


1874 





1875— - 




1876— 




1877 


f{ 


1678 


1879 

1880 


1881 


i.-f 


1882—. 


1883—. 


"S^ 1 


1881 


°"* w 


1885— 




1886— 


lh 


1887 


5J a 1 


1888 


o -1 


1889 




1890 


I a 


1891 

1892— 
1893— 




1891 


Hi 


1895— 


1896—. 


o- 1 


1897— . 


> 


1898— 


"3 > 


ism 


1900— 


MS 


1901 

1902.... 

1903 

1901 


' 


1905 


iij 


1906 

1907 




1908 



Total net 
ordinary 
receipts. 



374,491 
364,694 
322,177 
299,941 
284,020 
290,066 
281,000 
257,446 
272,322 
333,526 
360,782 
403,525 
398,287 
348,519 
328,690 
336,439 
371,403, 
379,266 
387,050 
103,080 
392,612 
354,937 
385,819 
297,722! 



,833.87 
,101.94 
,229.91 
,673.78 
,000.84 
,771.41 
,581.70 
,642.00 
,776.40 
,136.83 
,500.98 
,292.57 
,250.28 
,581.95 
,869.92 
,706.38 
,727.06 
,277.66 
,074.76 
,058.84 
,982.63 
,447.31 
,781.24 
,628.78 
,019.25 



313,300,075.11 
326,976,200.38 
247,721,705.16 



405,321 
515,960. 
567,219: 
587,685. 
562,478 
560,396. 
540,631 
544,274 
594,451 
663,140 



335.60 
620.18 
851.89 
337.83 
233.21 
674.10 
749.00 
685.00 
122.00 
334.00 
763.00 



Total net 

ordinary 

expenditures. 



293,657 
283,160 
270,559! 
285,239, 
301,238! 
274,623! 
265,101, 
241,334, 
236,961. 
266,947, 
261,847, 
259,651, 
257,981, 
265, 40S, 
244,126, 
260,226, 
242,483, 
267,932, 
259,653, 
281,996, 
297,736, 
355,372, 
345,023, 
383,477, 
367,525, 



005.15 
393.51 
695.91 
325.34 
800.21 
392.84 
084.59 
474.86 
326.80 
883.53 
637.36 
638.81 
139.57 
137.54 
244.36 
931.11 
138.50 
179.97 
958.67 
615.60 
486.60 
884.74 
330.58 
95*4.49 
279.83 



356,195,298.29 
352,179,446.08 
365,774,159.57 



443,368 
605,072 
487,713 
509,967 
471,190 
506,099 
582,402 
567,278 
568,784 
578,903 
659,552 



,582.80 
,179.85 
,791.71 
,353.15 
,857.64 
,007.01 
,321.31 
,913.45 
,799.06 
,747.75 
,125.00 



Excess of 
receipts. 



302,828.72 
270,711.43 
134,534.00 
938,318.44 



,397,378.57 

965,500.11' 

,666,167.14 

482,449.60' 

374,253.30 

,678,863.62 ■' 

130,653.76 

513,810.71. 

879,441.41) 

393,625.56 

463,775.27 

956,588.-56 

471,097.69 

612,116.0.3 

053,413.24 

314,196.03 

239,762.57 

914,453.66 

341,674.29 



79,536,060.18 
77,717,981.68 
91,287,375.57 
54,297,667.06 



25,669,323.00 
84,236,586.00 



Excess of 
expendi- 
tures. 



1,297,799.37 



69,803,260.58 

42,895,223.18 
25,203,215.70 
18,052,454.41 

38,017,247.20 
89,111,559.67 



41,770,572.00 
23,004,228.00 



59,656,362.00 



Our Government should be as exacting from foreigners as 
from Americans. Make them pay duty while we pay taxes.— 
Hon. P. C. Cheney. 



I believe in the reciprocity of Blaine and McKinley, reci- 
procity in non-competitive goods, hut not in reciprocity in 
competitive goods, which is simply free trade. — Hon. Andrew 
J. Volstead, in Congress, Feb. 8, 1904. 

Protection furnishes an opportunity for every person to 
find the employment best adapted to his or her genius and 
capacity that will secure the largest income or the greatest 
happiness. — Hon. J. S. Morrill, in the American Economist. 

Everyone knows that the average American consumer 
pays more than* the average British consumer. Yet the 
British consumer, in spite of that advantage, is by no means 
so well off as the American consumer. — The London Daily 
Telegraph. 

We have prospered marvelously at home. As a nation 
we stand in the very forefront in the giant international 
competition of the day. We cannot afford by any freak or 
folly to forfeit the position to which we have thus trium- 
phantly attained. — President Roosevelt at Minneapolis, April 
4, 1903. 

In the ten years which has elapsed since the enactment 
of the Dingley Tariff, the conditions have so changed as to 
puike a number of the schedules under that tariff too high 
and some too low. This renders it necessary to re-examine 
the schedules in order that the tariff shall be placed on a 
purely protective basis. By that I mean it should properly 
protect, against foreign competition, and afford a reason- 
able profit to all manufacturers, farmers, nnd business men, 
but should not be so hieh as to furnish a temptation to the 
formation of monopolies to appropriate the undue profit of 
excessive rates. — Hon. Wm. # H. Taft, at Kansas City, Mo. 

One vital, dominating fact confronts the Democratic 
party which no oratory, -which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



THE IRON AND STEEL INDUSTRY. 



Conditions in United States Compared with Other Countries. 

The world produced about 58,850,000 tons of pig iron in 1906. 
of which over forty- three per cent, was made in the United 
States. The same great development is shown in the production 
of steel, of which the United States produced over 23,398,000 
tons in 1906; Germany over 11,307,000 tons, and Great Britain 
6,575,000 tons. The United States produced 5,516,000 tons more 
than Germany and Great Britain combined. In 1889 the United 
States produced 7,603,642 tons of pig iron, which at that time 
was the largest production ever made in this country in one 
year. Great Britain produced in that year 8,322,824 tons, and 
she had exceeded the production of the United States in each 
preceding year. But under the McKinley tariff the production 
of pig iron increased to 9,202,703 tons in 1890, in which year 
the product of Great Britain fell off to 7,904,214 tons. Since 
that time the United States has almost trebled its production, 
while Great Britain has made little progress. Germany, which 
Went under a protective tariff in 1879, produced only 4,524,558 
metric tons (2,204 pounds) of pig irOn in 1889 ; but in 1906 
Germany had increased the production so that her pig iron 
product was over 2,*L83,000 tons greater than that of Great 
Britain, and in steel she exceeded Great Britain by over 4,732,000 
tons. In 1906 Germany produced of Bessemer and open-hearth 
steel 11,307,807 tons, while Great Britain produced only 6,462,274 
tons. The United States produced 23,256,243 tons. 

The World's Greatest Pis Iron Producers. 

The following table gives the production of pig iron from 
1880 to 1907 by the three great pig iron making countries. For 
the United States and Great Britain tons of 2,240 pounds are 
used, and for Germany and Luxemburg metric tons of 2,204 
pounds. 



Years. 


United States 
(gross tons). 


Great Britain 
(gross tons). 


Germany and 
Luxemburg 
(metric tons). 


1880 

1881 


3,835,191 

4,144,254 

4,623,323 

4,595,510 

4,097,868 

4,044,526 

5,683,329 

6,417,148 

6,489,738 

7,603,642 

9,202,703 

8,279,870 

9,157,000 

7,124,502 

6,657,388 

9,446,308 

8,623,127 

9,652,680 

11,773,934 

13,620,703 

13,789,242 

15,878,354 

17,821,307 

18,009,252 

16,497,033 

22,992,380 

25,307,191 

25,781,361 


7,749,233 
8,144,449 
8,586,680 
8,529,300 
7,811,727 
7,415,469 
7,009,754 
7,559,518 
7,998,969 
8,322,824 
7,904,214 
7,406,064 
6,709,255 
6,976,990 
7,427,342 
7,703,459 
8,659,681 
8,796,465 
8,609,719 
9,421,435 
8,959,691 
7,928,647 
8,679,535 
8,935,063 
8,693,650 
9,608,086 
10,109,453 
*9, 923, 856 


2,729,038 
2,914,009 


1882 - - - 


3,380,806 


1883 — — 


3,469,719 


1884 


3,600,612 


1885 - 


3,687,434 


1886 - 


3,528,657 


1887 


4,023,953 


1888 


4,337,121 


1889 


4,524,558 


1890 


4., 658, 450 


1891 


4,641,217 


1892 - - 


4,937,461 


1893 _ _ _ 


4,986,003 


1894 


5,380,038 


1895 _ — 


5,464,501 


1896 


6,372,575 


1897 


6,881,466 


1898 -- - — 


7,312,766 


1899 . 


8,143,133 


1900 


8,520,540 


1901 . 


7,880,087 


1902 


8,529,810 


1903 


10,017,901 


1904 


10,058,273 


1905 

1906 


10,875,061 
12,292,819 


1907 


12,875,159 







* British Iron Trade Association. 

From 1880 to 1907 the production of pig iron in the United 
States under protection increased from 3,835,191 gross tons to 
J5, 781,361 gross tons, a gain of 21,946,170 gross tons, and in 

156 



THE TARIFF— IRON AND STEEL. 157 

Germany and Luxemburg, also under protection, it increased in 
the same period from 2,729,038 metric tons to 12,875,159 metric 
tons, a gain of 10,146,121 metric tons. Under free trade in Great 
Britain, however, the production increased in the same period 
2,174,623 gross tons only, the gain being from 7,749,23^3 gross, tons 
in 1880 to 9,923,856 gross tons in 1907. 

Effect of Protective Tariff upon Steel Rail Industry. 

The development of the steel rail industry in the Unite'd 
States has been of enormous benefit to the country and has. 
demonstrated beyond question the great value of the protective 
tariff. When it was proposed in 1870 to place a duty of $28 a 
ton on steel rails the Hon. S. S. Marshall, a prominent member 
of the House of Eepresentatives, earnestly protested against thtj 
proposed duty because, as he alleged, it would so increase the cost 
of foreign steel rails that our railroad companies could not afford 
to import them. The average price of Bessemer steel rails in 
this country at that time was $106.75 a ton in currency. The 
duty of $28.00 a ton was imposed in that year, and the price 
of steel rails fell in five years to an average of $68.75 a ton, and 
they never rose above those figures, but steadily fell in most of 
the succeeding years. The reduction in price, owing to the de- 
velopment of this industry, has led to the substitution of steel 
for iron rails, which are no longer manufactured to any extent. 
The durability of steel rails is many times greater than that of 
iron rails, and this has enabled the railroads to increase the size 
and power of their engines and cars, so that the cost of trans- 
portation has been enormously reduced. The United States long 
ago became the largest producer of steel rails in the world, 
Great Britain long having fallen behind. Formerly a large per- 
centage of the rails in use were iron. Now they are practically 
all steel. The tariff on steel rails in 1870 was 45 per cent, ad 
valorem. That has been gradually reduced until now it is $7.84 
a ton. In 1906 the production of all kinds of steel rails in 
the United States amounted to 3,977,872 tons. 



The United States Steel Corporation Not a Monopoly. 

To refute a common free trade charge we republish from 
the Annual Statistical Beport of the American Iron and Steel 
Association the following table, which gives the percentages 
of production of all leading iron and steel products by the 
United States Steel Corporation and by independent companies 
in the year 1906, the latest year for which statistics are avail- 
able. It also gives for the same year the percentages of ship- 
ments of iron ore by the Corporation and by the independent 
companies from the Lake Superior region and the percentages 
of the total production of iron ore and coke in the whole 
country by the Corporation and by the independent companies. 
The statistics of the total shipments of iron ore from the 
Lake Superior region and of the production of iron and steel 
we have obtained from the Annual Beport of the American 
Iron and Steel Association, and the statistics of the country's 
total production of iron ore and coke we have obtained from 
the publications of the Division of Mining and Mineral Be- 
sources of the United States Geological Survey, the Cor- 
poration reporting to us its share of these shipments and pro- 
duction. 



If by asserting complete Federal control over the inter- 
state railways of the conntry we can snppress secret re- 
bates and discriminations of other hinds, we shall have 
gone a long way in the suppression of the unlawful trusts.— 
Hon. Wm. H. Taft, at Columbus, Ohio. 

Think of it, men of Rochester; you producers and manu- 
facturers and merchants and traders and bankers and trans- 
porters, think of it! The market of our own country, the 
borne market, in -which yOu can transport your goods from 
the door of the factory to the door of the consumer, witbout 
breaking bulk a single time, is equal to the entire inter-, 
national commerce of the world.— O. P. Austin, at Rochester. 



158 



THE TARIFF— IRON AND STEEL. 



Products of the United States Steel Corporation and 


1906. 


of Independent Companies. Comparative Statement by 
Percentages.' 


Corpo- 
ration. 


Inde- 
pendents 


Shipments of *Lake Superior iron ore 


54.2 
43.2 
36.5 


45.8 


Total production of iron ore 


56.8 


Production of coke 


63.5 






All kinds of pig iron 

Spiegeleisen and ferro-manganese— , 


44.2 

68.4 


55.8 
31.6 


Total pig iron, including spiegel, etc 


44.5 


55.5 


Bessemer steel ingots and castings 


65.7 
49.6 


34.3 


Open-hearth steel ingots and castings 


50.4 








58.1 


41.9 






Bessemer steel rails 


52.6 
54.6 
56.3 
71.7 
33.8 


47.4 




45.4 


Plates and sheets, excluding nail plate 


43.7 


Wire rods __ 


28.3 


Bars, open-hearth and iron rails, etc 


66.2 






Total of all finished rolled products 


48.1 


51.9 






Wire nails 


65.5 
73.4 


34.5 


Tin plates and terne plates 


26.6 







This table completely disproves the statement so often made 
that the United States Steel Corporation is a monopoly which 
controls the iron and steel industries of the country, and that 
it stifles -all competition in these lines of industrial develop- 
ment. Indeed there is one branch of the steel industry in which 
it is not engaged at all — the manufacture of crucible steel. 



In the years that have gone by we have made the deed 
square with the word. — President Roosevelt's speech accept- 
ing 1904 nomination. 

We have kept of the same mind for a sufficient length of 
time to give our policy coherence and sanity. — From Presi- 
dent Roosevelt's speech of acceptance. 

It appears that in all commercial countries export prices 
are at times from various causes lower than domestic prices. 
Hon. E. L. Hamilton, in Congress, April 14, 1JH>4. 

The highest claim of William McKinley for the gratitude 
of his countrymen is that, in spite of the abuse and con- 
tumely that was heaped upon his head for this policy, he 
placed our country in the forefront of nations as a civilizer 
and uoiifter of unfortunate peoples. — Hon. Wm. H. Taft, at 
Cleveland, Ohio. 



The United States is a continental nation and should 
adopt a continental policy. Free trade is adapted only to 
insular nations, and no continental nation has adopted a 
free-trade policy.— Ex-President Hill, of the University of 
Rochester, now Ambassador to Germany. 

I believe our strong party with its great principles is 
only in its infancy. Our glory as a nation has but just 
begun. There are mighty problems yet to Be solved, grave 
questions to be answered, complex issues to be wrought 
out, but I believe we can trust the Grand Old Party and 
its leaders to care for the future of our Nation and of our 
people as it has cared for them so well in the past.— Hon. 
James S. Sherman. 

The Republican principle of the protective tariff is, as 
I understand it, that through the customs revenue law a 
tariff should be collected on all imported products that 
compete with American products, which will at least equal 
a difference in the cost of production in this country and 
abroad, and that proper allowance should be made in this 
difference for the reasonable profits to the American manu- 
facturer.— Hon. Wm. H. Taft, at Columbus, Ohio. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'5 
ELECTION.— New York: World. 



A tariff which protects American labor and Industry and provides 
ample revenues has beeD written in public law. 

—WILLIAM MCKINLEY. 

THE TIN-PLATE INDUSTRY. . 



Established under McKinley Protection, Checked by Demo- 
cratic Free Trade, it has Effected a Saving of $35,000,000 
to the Conntry and Now Gives Employment to 17,000 
people, Who Earn $10,000,000 a Year in Wages, 

By B. E. V. LUTY, Pittsburg. 

The American tin-plate industry is the best illustration of the 
benefit of a protective tariff. It is for this reason that it is 
singled out by the Democrats for especially vicious attack. 

The McKinley protective duty of 2.2 cents a pound went into 
effect on July 1, 1891. For years prior to that time there was 
a revenue tariff on tin plate of one cent a pound. Under it no tin 
plate could be made in the United States, our supply being all 
imported from Wales, which had a monopoly. The Welsh manu- 
facturers had an understanding among themselves which 
amounted to a trust, and charged exorbitant prices. The duty, 
being a revenue one, was paid by the American consumer. The 
reduced duty of 1.2 cents in the Wilson-Gorman law went into 
effect on October 1, 1894, and caused a wage dispute which kept 
all the American tin plate works closed from that date until 
the latter part of January, 1895, when they were put in oper- 
ation at greatly reduced wages. The American tin plate works 
were then enabled to operate under the existence of the Wilson- 
Gorman tariff law because : 

Growth of the Industry. 

1. The industry had acquired great momentum under the 
McKinley law. 

2. Economies and new processes were introduced during that 
period, after great expenditures of time and money. 

3. There were heavy wage reductions. 

4. The Wilson-Gorman duty of 1.2 cents a pound was 0.2 
cent higher than the old revenue duty. 

5. The general depression in the iron and steel and other 
industries, caused by the Wilson-Gorman law, brought the raw 
materials of tin plate manufacture in the United States down to 
lower points than had ever been seen before. 

The Dingley law, effective July 24, 1897, increased the tin 
plate duty to 1.5 cents per pound, and two wage advances were 
made, in 1897 and 1899, giving the tonnage men an average 
increase of 17 per cent, over the wages paid under the Wilson- 
Gorman Tariff. 

The following table gives the imports of tin plate into the 
United States since 1889 in long tons : 

Year. Long tons. 

1889 331,311 

- 1890 329,435 

1891 327,882 

1892 268,472 

1893 253,155 

1894 215,068 

.1895 Bl9,545 

1896 119,171 

1897 83,851 

1898 % 67,222 

1899 58,915 

1900 60,386 

1901 77,395 

1902 60,115 

1903 47.360 

1904 70,652 

1905 65.740 

1906 56,983 

1907 , , 57,773 

159 



160 THE TARIFF— TIN PLATE. 

The tin plate imports after 1897, the year in which the 
Dmgley law was enacted, has been practically altogether for 
"drawback" purposes, the tin plate being made into containers 
for exported oil, fruit, fish, meat, etc., and being used in the 
manufacture of carpet sweepers and many other articles for 
export. On the exportation of such articles the Government 
refunds 99 /per cent, of the duty originally paid on the amount 
of tin plate actually used in the manufacture of such exported 
articles. I 

The following table gives the production of tin plate in the 
United States in each calendar year since 1891 : 

Year. Long tons. 

1891 552 

. 1892 ; 18,803 

1893 55,182 

1894 74,260 

1895 113,666 

1896 160,362 

1897 256,598 

1898 326,915 

1899 397,767 

1900 302,665 

1901 . .. 399,291 

1902 366,000 

1903 . 480,000 

1904 458,000 

1905 493,500 

1906 577,562 

1907 *495,000 

*Estimated. 

High and Low Prices. 

The following table shows the highest and lowest prices in 
Wales of full weight coke tin plate since 1889. The great decline 
caused by the American industry will be noted. The much higher 
prices in 1899-1900 and in 1906-1907 were caused by the great 
advances in raw materials, especially steel and pig tin, which 
have occurred all over the world : 

Year. Lowest. Highest. 

1889 12s 9d 18s Od 

1890 13 3 17 3 

1891 12 6 12 6 

1892 11 9 12 8 

1893 10 10^ 12 6 

1894 10 3 11 

1895 9 9 10 9 

1896 8 10y 2 10 6 

• 1897 9 9 10 3 

1898 9 9 10 6 

1899 11 15 6 

1900 13 3 16 9 

1901 12 3 15 3 

1902 11 9 14 

1903 11 12 6 

1904 11 6 12 6 

1905 11 4i/ 2 13 

1906 12 3 15 

1907 12. 3 15 iy 2 

The following table gives the average price of full weight 
(108-pound) coke tin plate in New York, imported plate for 1894 
and preceding years and domestic plate for subsequent years : 

1890 $5.15 

1891 5.30 

1892 5.34 

1894 , 4.57 

1895 3.66 

1896 3.63 

1897 3.26 



THE TARIFF—TIN PLATE. 161 

1898 $2.99 

1899 4.50 

1900 4.82 

1902 4.20 

1903 4.00 

1904 3.70 

1905 ' 3.80 

1906 3.90 

1907 4.20 

1908 (first half) 4.00 

The following- table shows the price changes in the past 
nine years, with the date on which each new price went into 
effect. These prices are f. o. b. Pittsburg, plus freight to des- 
tination, and are for 100-pound plates, full weight (108-pound) 
being 15 cents additional. When imported plate controlled the 
market, New York was the cheapest point, deliveries at inland 
points being higher. A comparison, at New York, of present 
prices with prices ruling before the establishment of the Ameri- 
can industry, is not fair, because at the earlier time the prices 
delivered to the principal inland consuming points were higher 
than New York prices, whereas now they are lower. The freight 
Pittsburg to New York, is 18 cents a hundred, while from Pitts- 
burg to a point even as far west as Chicago the rate is only 
18 cents. 

July 14, 1899 . . . $4.37% 

August 6, 1899 4.65 

September 24, 1900 4.00 

November 3, 1902 3.60 

March 3, 1903 3.80 

November 16, 1903 3.60 

January 25, 1904 3.45 

*July 25, 1904 3.30 

November 15, 1904 3.45 

December 22, 1904 3.55 

October 3, 1905 3.35 

October 20, 1905 3.45 

November 20, 1905 3.40 

January 8, 1906 3.50 

April 10, 1906 -.- 3.60 

May 19, 1906 3.75 

October 25, 1906 3.90 

January 6, 1908 3.70 

*Discount changed to 2 per cent., previously 1 per cent., for 
cash in 10 days. 

A Saving of $35,000,000. 

By making a careful estimate of what tin plate would have 
cost the consumer from the beginning of 1892 to the middle 
of 1900, had there been no American industry and no protect- 
ive tariff, and closely calculating what it actually cost in these 
years, with the protective tariff and the American industry, it 
has been found that the country saved to that date fully 
$35,000,000 through the McKinley tin plate schedule. Most of 
this saving was due to the American product selling at so 
much below the imported, but part was due to the lower prices, 
at which the foreign was sold, on account of the competition, 
before the country made all the tin plate it needed. 

The average weekly earnings of the skilled labor in the 
American tin mills are from two and a half to three times 
as much as in Wales, while the earnings of the common labor 
are fully twice as much. The skilled men are on a tonnage 
basis, the rates per ton in the United States being more than 
double what they are in Wales. In addition to this, the Ameri- 
can manufacturers invest a great deal more money, probably 
three times as much, in their plants, making the mills heavier 
and employing more convenient arrangement, whereby the ni< n 
are enabled to make a much larger tonnage output per shift. 
When the American tin plate industry was first established, 
%e average output per hot mill per turn was about 50 boxe* 



162 . TEE TARIFF— TIN PLATE. 

against 36 in Wales. Improved practice and still heavier ma- 
chinery was adopted in the American plants, whereby the aver- 
age output has been raised to fully 75 boxes, while following- 
after the Americans the Welsh manufacturers have made some 
improvements, and brought their average output up to 50 boxes, 
which leaves it that the American mills lead by a slightly larger 
percentage than they did at the start. 

Tiii Plate is Cheap. 

Tin plate is cheap at present, being much lower than at any 
time prior to the passage of the McKinley law. In 1890, the 
year before the McKinley duty became effective, and when pig 
tin, which is in no respect under control of either the American 
or the Welsh mills, sold at less than three-fourths the pres- 
ent price, tin plate delivered Pittsburg averaged 38 per cent, 
higher than it does at present. The following table gives 
the cost, delivered Pittsburg, of the quantity of tin plate re- 
quired to make the articles named: 

Cents. 

Ordinary 2-lb. or No. 2 can 0.94 

Ordinary 3-Ib. or No. 3 can 1.34 

Half-pint tin cup 0.79 

Quart tin cup 1.34 

3-qt. dinner pail 4.34 

3-qt. dinner pail, plus 1-pt. cup . 5.26 

The tin plate required for the famous dinner pail, therefore 
costs only what the workman pays for an ordinary street car 
fare. 

Workmen Recognize Tariff's Responsibility for High Wages. 

In October, 1902, the Amalgamated Association of Iron, Steel, 
and- Tin Workers gave the clearest recognition that has ever 
been given of the fact that the tariff is responsible for the 
wages they receive. The condition was that while the American 
tin mills had captured practically all the demand for the tin plate 
for domestic consumption, the Welsh manufacturers were still 
shipping in from a million and a quarter to a million and a half 
boxes. (50,000 to 65,000 tons) of tin plate, which was made into 
cans for exports of petroleum, fruit, fish, etc., and for some minor 
purposes. Through the operation of the general drawback law 
the Government, on the export of these commodities, paid to the 
exporters 99 per cent, of the duty which had originally been 
paid on the tin plate so used. Thus the tin plate used in this "re- 
bate trade" was practically duty free. The Amalgamated Associa- 
tion therefore made, in October, 1902, an arrangement with the 
American Tin Plate Company whereby they would work up plates 
intended for the rebate trade at wages 25 per cent less than 
the regular scale rate. It was recognized that this percentage 
did not represent the full concession needed to capture this re- 
maining trade from the Welsh makers, but the company was 
willing to make up the balance itself. 

The plan was put into practical operation by 3 per cent, of 
the men's total wages being set aside in a special fund, from 
which withdrawals are made as cans, etc., are exported, equal 
to 25 per cent, of the wages originally involved. This apparently 
complicated system was adopted partly because it would have 
been inconvenient to identify each lot of tin plate as it went 
through the mill as being intended for export purposes, and the 
safer plan was adopted of the wage rebate being payable just 
as the actual exports were made. 

By this action the men recognized that the tariff was directly 
responsible for the wages they were receiving, and showed that 
they were willing, in competing with Welsh manufacturers opera- 
ting under no tariff, to make a concession in wages. 

This arrangement has now been in force nearly six years, 
and the workmen are .very well satisfied with it. 

The following table gives the production of tin plates and 
terne plates in the United States from the beginning of the 
industry in 1891 to the end of 1906. From July 1, 1891, to June 
30, 1897, the statistics we present were collected by Colonel 



THE TARIFF— Tiy PLATE. 



163 



Ira Ayer for the Treasury Department. On the latter date the 
Department abandoned the collection of these statistics. From 
July 1, 1897, to December 31, 1899, from January 1, 1901, to De- 
cember 31, 1903, and from January 1, 1905, to December 31, 1906, 
the statistics have been compiled from most reliable sources. 
For the census years the production is given by the Census Bu- 
reau. 



Production of tin plate and terne plate. 9, 1891-1906. 
[From annual report of the American Iron and Steel Association.] 



Years -Pounds. 


Tinplates. 


Terne plates 


1891 (last 6 months) 

1892 (calendar year) _ 


368,400 
13, 921, 2 06 
64,536,209 
102,223,407 
165,927,907 
270,151,785 
203,028,258 


1,868,343 
28,197,896 
59,070,498 
64,120,002 
88,6S3,4bS 1 
89,058,013 
49,515,6KB 


1893 


1894 


1895 


1896 .. . _ _ 


1897 (first 6 months) 


1897 (last 6 months) 


1898 (calendar year) 






1S9P _ 


1 


1900 (census year ending May 31)__ 

1901 (calendar year) _____ 


707,718,239 


141.2S5.783 


1902 




1903 __ 


_ _ _ 




1904 (census year ending Dec. 31)__ 

1905 (calendar year)_ 


867,526,985 


158,857, Sf« j 


1906 


1,100,373,000 


193,367,000 [ 





2 

42 

123 

166 

254 

359 

252 

322 

732 

808 

849 

894 

806 

1,075 

1,026 

1,105 

1,293 



236,743 
119,192 

,606,707 
343,409 
611,395 
209,798 
573,901 
205,619 
289,600 
360,000 
004,022 
411,810 
400,000 
200,000 
384,851 
440,000 
740,000 



Tlie millions we formerly sent to aliens in alien lands to 
pay them for making- tin plate for its we now pay to our own 
countrymen in tlie United States: we have the tin plate and 
we have the money expended for tin plate besides. — Hon. Wm. 
S. Greene, in Congress, April 28, 1904. 

Remembering those Republican promises and their ful- 
fillment in the years since, calling to mind the unfulfilled 
Democratic promises and the bitter years of 1893-1896, what 
will you gain by voting the Democratic ticket. — Representa- 
tive Chas. Dick, of Ohio, in Congress, Jan. 5, 1904. 

The difficulty with the Democratic party and the reason 
why the American people thus far have manifested their 
distrust of it is because it has no policy -which the country 
can depend upon. Its whole stock in trade is that of ir- 
responsible criticism and obstruction, but when charged 
with the responsibility for doing anything it utterly fails. 
—Hon. Wm. H. Taft, at Greensboro, North Carolina. 

By the policy of fostering American industries the devel- 
opment of our manufacturing interests have been secured; 
the inventive genius of our people has found a field; Ameri- 
can labor has become the best paid, and consequently our 
laborers are the best housed, clothed, and fed; and the won- 
derful development and progress in this country in all that 
makes a people great, have elicited the admiration of the 
civilized world. — Senator Cullom, in the American Econo- 
mist. 



This is not and never shall be a government of a plutoc- 
racy; it is not and never shall be a government by a mob. 
It is, as it has been and as it will be, a government in which 
every honest man. every decent man, be he employer or em- 
ployed, wage-worker, mechanic, banker, lawyer, farmer, be 
he who he may, if he acts squarely and fairly, if he does his 
duty by his neighbor and the State, receives the full pro- 
tection of the law and is given amplest chance to exercise 
the ability that there is within him, alone or in combination 
with his fellows, as he desires. — President Roosevelt at 
Butte, Mont., May 27, 1903. 

In the ten years which has elapsed since the enactment 
of tho Dingley Tariff, the conditions have so changed as to 
make a number of the schedules under that tariff too high 
and some too low. This renders it neccssacy to re-examine 
the schedules in order that the tariff shall be placed on a 
purely protective basis. By that I mean it should properly 
protect against foreign competition, and afford a reason- 
able profit to all manufacturers, farmers and business men, 
but should not be so high as to furnish a temptation to the 
formation of monopolies to appropriate the undue profit of 

I excessive rates.— Hon. Wm. H. Toft, at Kansas City, Mo. 
One vital, dominating fact confront** the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION .MEANS TAFT'S 
ELECTION— New York World. 



THE TEXTILE INDUSTRIES OF THE 
UNITED STATES. 



How Laoor and Agriculture have been Mutually Aided aud 
Prices to the Consumer Reduced Under the Protective 
System. 

[By Edward Stanwood, author of "A History of the Presidency " "American 
Tariff Controversies of the Nineteenth Century, etc.] 

If one were asked to designate the American industries which 
may be regarded as the most conspicuous trophies of the pro- 
tective policy the answer would undoubtedly be : Textiles, iron, 
and glass. The most dramatic conquest the policy can boast is 
in one branch of the iron and steel industry, namely, that ot 
tin plates. Nonexistent in 1890, it gave employment in 1900 to 
nearly 15,000 workmen, and provided practically the whole sup- 
ply of tin plates for the immense canning industry of the coun- 
try at prices far below those which prevailed when the market 
was controlled by foreigners. +*_ ?„ 

Nevertheless, the most important achievement of protection is 
the establishment and development of the mills in which is spun 
and woven the material of the clothing of the • people— cotton, 
wool, and silk. . , , . 

The Father of his Country in his first annual address to 
Congress used the following language: 

"A free people ought not only to be armed but disciplined; to which 

"^Although clothing was one of the articles indispensable in 
time of war, the manufacture of which it was obviously the duty 
of Congress to promote, it was not until after the war of 18 1~ 
that a serious thought was given by Congress to the Flection 
of the manufacture of cloth of any material. During the period 
of nonintercourse that preceded the last war with England 
It was found impossible to buy in the country $6 000 worai of 
blankets to supply the Indians. During the war the only way 
in which clothing could be procured for the soldiers of our Army 
was by importation secretly from the British provinces m viola- 
tion of law- a violation at which the Government was compelled 
bv the necessity of the case to connive. ,■ 

7 After the war the country was flooded with foreign ^textiles 
and the cotton manufacture which had been established under 
?he protection of nonintercourse was brought almost to tg verge 
of ruin. Then began the attempts to foster the cotton and 
woolen industries by means of a protective tariff, which, often 
interrupted, have continued to the present time. 

The Cotton Industry. 

Cotton manufacture has enjoyed fairly adequate ]£°teciioj} 
for three-quarters of a century. Even under the Walker tariff 
of 1846 the rate of duty was sufficient to give the home manu- 
fLt^TftmTOom^etl control of the market for the 'coarse 
aruf medium goods, which constitute by far the largest amouii 
of ,wls consumed by the average fam ly. Beginning wM 
the Morrill tariff of 1861, adequate protection has at all tim£ 
oeeii given to almost all classes of cotton manufactures aid 
the results have been a great growth of the indu stay, ^large 
employment of labor, and an increasing market for the raw 
p • et of southern plantations. Keen domestic competition and 
mproved machinery 'have reduced the prices of goods enormous v 
Thus everv interest connected with this industry directly or in » 

livTJy, Zs been benefited- tl uiufacturer and his employee 

3 64 



THE TARIFF THE TEXTILE INDUSTRY. 



165 



the southern planter, and the whole population of the country, be- 
cause all are consumers of the products of cotton mills. In re- 
cent years the United States has begun the conquest of foreign 
markets. An export trade established before the civil war reached 
in 1860 almost $11,000,000. It did not touch these figures again 
until 1878, nor did it greatly exceed them until 1896, when the 
value of cotton goods exported was almost $17,000,000. Since then 
the increase of the trade has been rapid; In 1006 Lhe \a?ue 
ol the cotton goods exported was almost $53; 000,000. Since then 
there has been a large decrease, due solely to the cessation of 
a demand from the Chinese Empire, but it is believed that 1he 
tendency lo decrease is biu temporary. 

The most remarkable feature of the cotton industry is its 
stupendous growth in the South. The determined opposition 
to the protective policy led by Calhoun Involved the idea that 
this must be an agricultural country, and that the cotton raised 
should be exported. Yet to-day the State of .John C. Calhoun 
contains more cotton spindles than any other State except Massa- 
chusetts. In 1880 there, were but 610,000 spindles in all the South- 
ern States. In 1908 there were more than ten million spin- 
dles in that part of the country, and the industry was carried on 
in every one of the old "slave States" except Florida. 

The accompanying table shows the progress made by this 
industry during the last thirty -five years under a policy of 
uninterrupted protection, for the Wilson tariff of 1894, harmful 
to other manufacturers, did not materially reduce the protective 
duties on cotton fabrics. 



1870. 



$140,708,291 



135, 

$39,041, 



Number of estab- 
lishments 

Capital 

Wage-earners, av- 
erage number- 
Total wages 

Cost of materials 
used 

Value of products $177,4^9 

Active spindles, 
number 

looms, number. 

Cotton con- 
sumed, bales___ 

Cotton con- 
sumed, pounds. 398, 303, 2t 



132 



$111,736,936 
39 



7,132 
157 



18S0. 



756 
$208,280,346 



174,659 
$42,040,510 



$102,206,347 
$192,090,110 



10.653,435 
225,759 



1,570,344 
'59,343,981 



905 
$354,020,843 



21S,876 
$66,024,538 



$154,912,979 

$267,981,724 



14,188.103 

324,866 



1900. 



2,261,600 



973 

$460,842,772 



297,929 
$85,126,310 



$173,441,390 
$332,806,1.56 



19,008,352 

450,682 



,639,495 



1905. 



1,077 
,100,164 



$94 



$282 . 
$442. 



310, 45S 
377,696 



047,648 
451,218 



1,117,945,776 1,814,002,512 1,873 

I I 



,155,613 
540,910 



743,089 
,074,716 



Tlie Woolen Industry. 

The voyage of the woolen industry has been through seas 
much more stormy than those over which the cotton manufac- 
turers have passed. The difficulties wdiich have beset it have 
arisen largely by reason of the complication of protection of 

, wool with protection of wool manufactures. The growers of 
wool have rightly contended that they were as deserving of the 

\ fostering care of government as were the users of their product. 
The concession of their contention has resulted, naturally and in- 
evitably, in the requirement of a duty on finished goods which 
seems excessive to those who are not aware of the peculiar 
circumstances of the case, and which has made the wool and 
woolen schedule of the tariff the vulnerable point always chosen 

| by the opponents of protection as the best for an attack and 
the easiest to carry by assault. There have constantly been 
many interruptions and variations in the policy of protection. 
which have prevented the full and healthy development of the 
industry. At one time, in 1846, a blow was given to the manu- 
facturers by a tariff law which levied no higher duty on finished 
goods than on raw wool. At another time, under the Wilson- 
Gorman act of 1894. the woolgrower was struck by a provision 
making wool duty free. 

Yet in spite of opposition ami of a vacillating policy the 
Woolen industry has grown to large proportions, taking ad- 
vantage of favoring laws to increase and gain strength! endur- 
ing adverse legislation as best it might, and holding itself 



166 



THE TARIFF— TEE TEXTILE INDUSTRY. 



ready to make a forward step again when conditions should 
permit. Although the inherent difficulties and the artificial 
difficulties resulting from the lack of a continuous and consistent 
policy have prevented the full development of the industry, and, 
in consequence, that unimpeded home competition which would 
bring prices down strictly to the level of the foreign article, 
yet the difference in price is not great. Upon many varieties 
of goods the price of American fabrics is as low as that of 
European fabrics of the same quality plus a rate of duty not 
higher than the average of a "revenue tariff." Protection has 
not placed the manufacturers of wool in a position so favorable 
as that of the manufacturers of cotton, but under the present 
tariff they are making good progress, and if the policy be con- 
tinued they will be able to intrench themselves strongly in the 
home market, to the great advantage of American wooigrowers 
in a steady demand for their product at reasonable prices, and 
of 200,000 wage-earners in continuous and remunerative employ- 
ment, as well as of the whole American people in an abundant 
supply of honest goods at fair prices. 

The extent to which the manufacturers of woolen and worsted 
goods have now possessed the home market may be seen from 
the fact that the value of the goods manufactured in Ameri- 
can mills in 1905 w T as $381,000,000, and the foreign goods of 
the same classes imported were valued at only $16,500,000. 

The main facts relating to the woolen and worsted indus- 
try and to the allied manufacture of hosiery and knit goods, 
covering the ascertainment at the last four censuses, are pre- 
sented in the following table : 





1880. 


1890. 


1900. 


1905. 


Number of establishments- 


2,689 
$159,091,869 

161,557 

$47,389,087 

$164,371,551 

$267,252,913 


2,489 
$296,494,481 

213,859 

$70,917,894 
$203,095,572 
$337,768,524 


2 335 

$392, 040 ',353 

242,495 

$82,292,444 

$232,230,986 

$392,473,050 


2,292 
$477,525,222 


Wage - earners, average 


283,691 




$102,333,548 


Cost of materials used 

Value of products 


$319,154,878 
$517,492,142 







The Silk Industry. 

It is not generally realized that under the operation of a 
protective tariff the United States has risen to the first rank 
among the silk manufacturing countries of the world, bringing 
all of its raw material from abroad and most of it from the oppo- 
site side of the globe. 

The Census Bulletin (No. 74) on Textiles (Census of Manufac- 
tures, 1905) shows that the average consumption of raw silk 
in the three years 1902, 1903, and 1904 was 13,500,000 pounds, 
in the United States ; and in France, which stood next on the 
list, only 9,500,000 pounds. In fact this country consumed al- 
most exactly one-half as much as all European countries com- 
bined. 

In. 1870 exactly two-thirds, in value, of the American con- 
sumption of silk manufactures was of foreign importation. In 
that year the total value of silk goods imported and produced 
at home was $36,418,995, of which only $12,210,662 was domestic. 
In 1905 the value of such goods consumed in the United States 
had increased more than fourfold and amounted to $165,110,728, 
of which four-fifths ($132,288,072) was of home manufacture. 
The value of imported silk manufactures increased only $10,- 
000,000 in the intervening thirty-five years ; the value of the 
domestic manufactures increased from $12,200,000 to $133,000,- 
000. 

The protective tariff created this industry in the Unite'd 
States at the same time that free trade killed the same in- 
dustry in Great Britain. Fifty years ago the silk manufacture 
of England was great and prosperous. The British census of 
1851 showed that there were 117,000 hands employed in the King- 
rloni in the silk mills. Even in 1879 it employed more .than 
40,000 hands. The system of free imports has rendered it almost 
♦ xtiuct. The value of goods produced in 1900 was but $15,000,- 



THE TARIFF— TEE TEXTILE INDUSTRY. 167 

000— less than one-sixth that of this country. The destruction of 
this industry by invited foreign competition is one of the chief 
points in Mr. Chamberlain's indictment of the free-trade policy 

the beginning of a protective system for the silk manufac- 
ture was made in the tariff of 1864, but the excessive internal 
taxation during and subsequent to the war, the disorganization 
ot labor and the diversion of capital to more pressing needs 
prevented the introduction of the manufacture on a large scale. 
Indeed although the percentage of growth of the industry be- 
tween 1870 and 1880 was large, it was not until the tariff act of 
1883 adjusted the rates in a satisfactory manner, making raw 
silk tree and allowing an adequate protection on manufactured 
goods, that the industry began to assume large proportions. It 
will be ; seen from the following table that it gave employment 
in 1905 to more than 80,000 employees who earned wa<res of 
nearly $27,000,000. The table corresponds to those already given 
for the other industries. J e 



Number of establish- 
ments 

Capital 

Wage-earners, average 
number 

Total wages 

Cost of materials used 

Value of products 

Raw silk used, pounds 



1870. 



86 
$6,231,130 

6,649 
$1,942,286 

$7,817,559 

$12,210,662 

684,488 



18S0. 



38' 
$19,125,300 

31,337 

$9,146,705 

$22,167,701 

$±1,033,045 

2,690,482 



1890. 


472, 
$51,007,537 

49,382 
$17,762,441 
$51,004,425 

$87, 298, 45 M 
6,376,881 



1900. 



483 
$81,082,201 

65,416 

$20,982,194 

$62,406,665 

$107,256,258 

9,760,770 



624 

$109,556,621 

79,601 

$26,767,943 

$75,861,188 

$133,288,072 

11,572,783 



The protective system is establishing the flax, hemp, and iute 
industries. As compared with .cotton, wool, and silk they are 
still of secondary importance, but are destined, if the policy be 
continued, to a large growth. 



'What It Means to Labor. 

In the aggregate these several branches of the textile indus- 
try employed in 1905 no less than 739,239 hands, who earned in 
wages the sum of $249,357,277, and the 4,563 establishments re- 
ported produced goods of the value of $1,215,036,792. The num- 
ber of hands employed exceeded by more than 175,000 the total 
population in 1900 of St. Louis, of Boston, or of Baltimore But 
it is always to be borne in mind, first, that on the average each 
wage-earner provides bread and meat, clothing, and lodging for 
not less than two persons besides himself ; and. secondly , & that 
their wages reach an ever-widening circle of persons engaged in 
other occupations— grocers, dry goods merchants, carpenters, and 
the like m the first instance, railroads and their employees 
farmers and planters, and an infinite number of others all the 
way between the first and the last. 



What It Means to the Farmer. 

It is a most serious mistake to suppose that the effect of 
prosperity or depression in the manufacturing, particularly in 
the textile, industry is limited to those employed in the mills 
and to their employers, or even to the communities and States 
m which the mills are located. The manufacturing communities 
(in this country are wholly dependent upon the agricultural 
regions for their food. New England, for example, does not 
raise enough of any single article of food to supply its own 
.people. Of the two staples, breadstuff's and meat, it does not 
jraise the one-hundredth part of its need. It is therefore vitally 
important to the farmers of the West that the mill hands shall 
be steadily employed and that their wages shall be sufficient to 
Enable them to purchase freely. Reduce the tariff, introduce 
Foreign goods instead of domestic, diminish the demand for the 
products of our own mills, cut wages, close the mills or put them 
on short time, and you deal a blow directly at the great agri- 
3ultural regions of the country. You restrict the consuming 
ijower of a community— including the wives and children of the 
Operatives— almost equal in number to the population of Chicago, 



168 TBE TARIFF— THE TEXTILE INDUSTRY. 

and you gain nothing in the form of a foreign outlet for your 
grain and your meat. . . 

The history of the textile manufacture in brief is this: A 
great industry has been built up by means of a protective tarrll ; 
two-thirds of a million of hands have employment m the facto- 
ries ; the country has become almost independent of a foreign 
supply of textile goods; the. growth of the industry has been 
accompanied by a steady and in the aggregate a great decline 
in prices, so that to-day the clothing of the people is not only 
cheap but nearly or quite as cheap, quality considered, as that 
of any. other nation; and in no branch of the industry is there 
a monopoly "trust* or the suspicion of a monopoly. No gre it 
f6rtunes have been built up in the textile manufacture, the 
conquest of the home market will be followed, if the wise policy 
be continued, bv an entrance into foreign markets, and by the 
leadership of the United States in all departments of this in- 
dustry. 

The textile industries of the United Mates at decennial periods, 

1850 to 1900. 

[Compiled from Census Reports.] 







oi 


1 


Num- 
ber 












53^^ 




of 




Cost of 


Value of 






s«« 


Capital. 


wage 


W ages. 


materials 


products. 




■"eg 


its 




earn- 










£• 1 53 <K B 


ers. 










^ 


K 


1 








Wool manu- 
facture (a) 


1850 


1,-760 


$32,516,366 


47,763 




$29,240,09,1 


$19,030,881 




1 M,() 


1,673 


42,819,932 


59,522 


~$13~361,602 


46,649,365 


89,(31,0)6 




1670 


3,150 


• 132,382,319 


119,859 


10,357,235 


134,154,615 


217,668,826 




1880 


2,089 


159,001,809 


161,557 


47,389,087 


101,371,55! 


267,252,913 




1890 


2,489 


296,494,481 


213,859 


79.917,891 


203,095,572 


337, 70.::, 5 '.1 




1900 


2,335 


392,010,353 


242,495 


82,292,444 


232,230,9X0 


392, 173,050 




1905 


2,292 


477,525,222 


283,691 


102,333,518 


319,154,878 


517,492,112 


Cotton 
















manufac- 

tUK- \U) 


1850 


1,094 


74,500,931 


92,286 




31,835,056 


61,869,184 




1800 


1,091 


98,585,209 


122,028 


"1.3^9l6"l08 


57,285,53! 


115,081,774 




1870 


956 


140,706,291 


135,369 


39,04 1,132 


111,730,9:',!, 


177,489,739 




1880 




20-', 280, 346 


174,05) 


42,010,510 


102,203,347 


192,090,110 




1890 


905 


351,020,842 


218,870 


66,021.538 


151,912,979 


267,981,724- 




1900 


1,055 


407,240,157 


302,861 


86,689,752 


176,551,527 


339,200,320 




1905 


1,154 


613,110,655 


315,871 


96,205,796 


286,255,303 


450,467,704 


Silk manu- 
facture 


1850 


67 


678,300 


1,743 




1,093,860 


1,809,476 




1800 


139 


2,920,980 


5,435 


"1~059~224 


3,901,777 


6,607,771 




1870 




6,231,130 


6,649 


1,912,286 


7,817,559 


12,210,662 




1880 


382 


19,125,300 


31,337 


9,140,705 


22,467,701 


41,033,015 




1890 


472 


51,007,537 


49,382 


17,702,111 


51,004, 125 


87,298,451 




1000 


483 


81,082,201 


65,416 


20,982,19! 


02,403,665 


107,256,258 




1905 


624 


109,556,621 


79,601 


26,767,913 


75,861,188 


133,288,072 


Dyeing- and 
















finish i n g 
textiles _-. 


1850 


101 


4,818,350 


5,105 




11,540,3(7 


15,451,430 




18(10 


121 


5,718,671 


7,097 


~ ~2~6(n\52S 


5,005,435 


11,716,463 




1870 


292 


18,371,503 


13,066 


5,221,538 


99,539,992 


113.017,537 




1880 


191 


26,223,981 


16,698 


6,474,364 


13,661,295 


32,297,420 




1890 


248 


38,450,800 


19,601 


8,911,720 


12,385,220 


28,900,460 




1000 


298 


60,613,101 


29,776 


12,726,316 


17,958,137 


44,933,331 




1905 


360 


88,708,576 


35,563 


15,469,205 


19,621,253 


50,819,515 


Flax, hemp 
















and jute 


L89I 


162 


27,731,64! 


15,519 


4,872,389 


20,148,311 


37,313,021 




1000 


111 


. 41,991.762 


20,903 


6,331,741 


32,197,885 


47,601,6:)'; 




1005 


133 


54,423,531 


24,508 


8,580,785 


44,890,510 


(12,939,329 


Combined 
textiles ..- 


L85C 


3 021 


112,513,917 


146,877 




76,715,95!) 


128,76! 




IS(>( 


3 021 


150,080,852 


L94,08i 


" 10~353J02 


L12,842,111 


21 1] ,40,611 






•1,791 


"i, ,694,24* 


27 1,9 1- 


86,565,191 


353,249,102 


520 - 




I88f 


4,01,« 


412,721,49* 


384,251 


105,050,661 


302.709,891 


532 . ; - 




L89I 


4,27f 


767,705,3 IC 


517,237 


: 1 OS, 188,982 


147, 5 1(1,510 


759,232,213 




100( 


i,::p 


1,042,997,575 


661,451 


21!' 1.022, 417 


521,345,200 


931, !' 




1905 


4,50.1 


1,343,324,60? 


739,230 210,357,277 


745,783,168 


1,215,036,712 



(a) Includes hosiery and knit goods. 



(b) Includes cotton small 



Cotton Production and Manufacturing- in tlie United State** 
also Imports and Exports of Cotton Manufacture. 

The statement showing the quantity of cotton consumed in-l 
dicates unusual activity among the cotton manufacturing in- 
terests of the United States during recent years, the numbei 



THE TARIFF— THE TEXTILE INDUSTRY. 169 

of bales taken for home consumption being in J905, 1906, and 
1907 much larger than in any corresponding period in the his- 
tory of our manufacturing industries, while the raw cotton 
imported was also larger than in any corresponding- period 
oi any earlier year, 'the export of eortou manufacture* m 
1905 and 1906 were more than double those of any two-year 
period in the history of our export trade. The fall of 22 mil- 
lion dollars in value of cotton exports in 1907 was due solely 
to a reduced demand in China, resulting- f rom over-importations 
into that country in 1904 and 1905. The growth in importa- 
tion of cotton manufactures shown in the final columns suggest 
great possibilities in our own markets still awaiting our own 
cotton manufacturers, especially in high grade manufactures, 
which form the bulk of the large imports of recent years. 



n„w *i Ppeal 1S n °* to a fa,se Philosophy or vain theories, 
n U i lZ * b , e masses °. f tae American people, the plain, practi- 
cal, people whom Lincoln loved and trusted and whom the 

Mai UeK£.iSS rt / v"? always faithfully striven to serve ± 
>iaj. .Helvinley to Notification Committee, 1896. 

nr.^/?. 1 ! 1 - ha2 L a i ds ' « nd n o matter what else is sought for or 

fn^mnJ. ™« e ? i y chail «es of the tariff, the American work- 

li . stanfinv.T **°*? e ** A ia his standard «f wages-that is, 

iimoltnn?^ - a * of l^ing-and must he secured the fullest 

Knirisirfree 8 ^.^^ 116 fact „ tIia * trusts are organized under 
£..? \\™/j +■ trade ».a» ^ell as German, Austrian, and 4meri- 
thnt W.m-o 1 ,, 011 ^ 1 * 1S . 8 ™» ce I»«l>le of absolute demonstration 
tltat American free trade would ooerate in the interest* of 

iTl^a^pfi^'V 11 * iateiest ~° f American SborT-Hoi! 
h.. L,. Hamilton, in Congress, April 14, 1904. 

fear",!.- a f!vl!!? iStrati0n J i[ exact J nstice »y courts without 
It*^?. 1 .f a,op ' "amoved by the influence of the wealth v «■• 




The man who tills his own farm, whether on the prairie 
?W tn - ttte w °odland, the man who grows what we eat and 
the raw material which is worked up into what we wear 
still exists more nearly under the conditions which obtained 
when the "embattled farmers" of '76 made this countiT a 
notion than is true of any others of our people.-PreVident 
Roosevelt, at Sioux Falls, S. Dak., April 6. 19037 riesiUeilt 

As w ell might a father of a family, jnst started in a pros- 
perous business with a small capital, distribute his little 
property equally among the poor of his neighborly 




We were passing; into a regime of an irresponsible 
plutocracy Daring the las* four years there has' bee., a 
erreat moral awakening to this danger among the people and 
a popular demand that the lawbreakers-no matter h« w 
CS5" fc Z: °!1 Ji°. W J- 1 "" op Powerful their position-shall hi 




m-« h wh« iS no , worse enemy of the wage-worker than the 
man who condones mob violence in anv shape, or who 
.nreacl.cs class hatred; and surely the slighted acqnaTnt* 
ance with our industrial history should tench even the 
most shortsighted that the times of most suffering fo" ££j 
people as a whole, the times when business is stagnant 
a t n,l ^ ai>, J al 8nffers fpom shrinkage and gets no ret,, Sf rom 
f/***- in , ^:stme.,ts. are exactly the times of hardship and wan! 

«r~s£ ff'wwsst*?: isssr- pre8ideni r — » at 

^CT.O^e^o^k WilT' " 0imiA ™» " R *** 'A* f^ 



COMMERCE OF THE UNITED STATES 
BY GREAT GROUPS, J 820 TO J 908. 



The tables showing the commerce of the United States by 
great groups from 1820 to 1908, which occupy the pages im- 
mediately following, are interesting and valuable especially in 
their relation to the agricultural and manufacturing industries 
of the country. Both imports and exports are grouped in a 
manner to show foodstuffs, and to indicate whether they are 
imported or exported in the natural state or in a form in which 
labor has brought them into condition for use, and thus added 
to their value. The imports and exports of crude materials 
for use in manufacturing are also separately shown ; also the 
imports and exports of manufactures, both those ready for con- 
sumption and those intended for further use in manufacturing. 
In each case the percentage which a given class forms of the 
total imports or exports is stated. A study of these tables 
gives a clear and interesting picture of the growth of our agri- 
cultural and manufacturing industries, and especially as to the 
importation of materials for use in manufacturing and the ex- 
portation of manufactures and the growing share which these 
classes form of the total imports and exports, respectively, of 
the country. It will be noted that, notwithstanding the Demo- 
cratic assertion that a protective tariff would destroy our mar- 
kets abroad, the total value of merchandise exported grew from 
1 billion dollars in 1897, the year of the enactment of the 
Dingley protective tariff, to 1,854 millions in 1907. In manu- 
factures, of which it was asserted that a protective tariff at 
home would especially injure our markets abroad, the growth 
has been strongly marked since 1897 ; exports of manufactures 
ready for consumption having grown from 213 million dollars 
in 1897 to 481 million in 1907, while manufactures for further 
use in manufacturing grew from 98 million dollars in 1897 to 
259 millions in 1907, and 1908 will show even larger totals. 
It will be noted also that the share which finished manufac- 
tures form of the total exports grew from 20.63 per cent in 189V 
to 25.93 per cent in 1907, and that of manufactures for further 
use in manufacturing, from 9.52 per cent in 1897 to 13.99 per cent 
in 1907. While it is not practicable at this time to give complete 
figures for the fiscal year 1908, an estimate based upon the avail- 
able figures up to the latest possible date indicates a continuation 
in 1908 of the growth in the exports of manufactures. In the 
tables of importations the column showing the value of crude 
materials imported for use in manufacturing is especially in- 
teresting in its evidence of the activity of our manufacturers 
in recent years, showing as it does that the value of crude 
materials imported grew from 196 million dollars in 1897 to 
477 millions in 1907, and that the share which this class of 
materials formed of the importations grew from 25.66 per cent in 
1897 to 33.25 per cent in 1907. 



In twenty years the workshop of the world has become 
the dnmpinK Rronnd of the world.-London Daily Telegraph, 
December lO, 1903. 

You cannot afford to have the question raised every four 
years whether the nation will nay or repudiate its dehts in 
whole or in part. — Hon. Win. McKinley to delegation of f arm- | 
ers at Canton, September 22, 1896. 

It is foolish to pride ourselves upon our progress and 
prosperity, upon our commanding position in the interna- 
tional industrial world, and at the same time have nothing 
but denunciation for the men to whose commanding position i 
we in part owe this very progress and prosperity, this com- 
manding i/osition.— President Roosevelt at Cincinnati, Ohio 
September 20, 1902. 

170 



OUR FOREIGN COMMERCE. 



171 



lOOHCOMMOCOIMNNI 
C0lfiN*-*HMO)N!O00O>mfflH( 



llfttNNO< 



IMOOMOM 



OOmSO^HOOtIIIMM CM'CO 00©N¥(»0:NCOCOOffi50C OC «5 CCCCCOt~>*inrH0C 

-H 00 rH-* OfflaMMW« , *W>mWOlfilN*HaMM'MOKOOin«iCHI^K'» 

^ ,H'rH CO eo ■* do 00 1^ 00 t- t» «5 1> «5 1- CO 00 © 00 00 t~ 00 O <M CO CO -^ M WS ■* -* 1- 00 CO 



iHNOHO^NaNtOONffl-HminOO^tONflOMMCOOOOOlfi^HOOCOOO 



iON«*M«54'*MNOlH( 



IHL1HlOOOOinNOO©»l 

lOXHXCOtO^-ti^tOCRI 



> Q CO CM rH OS CO GO • 



I CO CM t^ OS I 



co co Cj co ! 

■ CO CO O ift < 
I CO CO CM CS •* ■* ' 



i CO ■* i> 2< O I 

lOlTHOOl 
i-h CO OS ■<*< rH 1 



THCOrH-*lO-*CNCNCMCNl-*-*-^^-^'t^lomr^0500-^CO-^ , t^lf5' 



CP 3 

3 rH O 

uT" ft 

3(33 

3 CD 00 

* *- s 



t^CMCOCO<NOCTSCNCO©incOOSini:^COC7sr^COi— I CO -if CO CO I 

-+t-eoasoscMincbcM co.cm t> o> co co co © © co co © © co co ( 

' OS CM rH ■* ■* rH rH !>.' lO* CO* 1ft CO U5 ©' ©' in CO Co' in in 00 i-H ©' GO i 



iincomcM©mcoco 



» OS f- C7S 

. _ , ■+' CO 5Q m° 



00 CO ■ 



lO OS OS CO CO 1> CO < 
CO CO t- © CO CO OS < 

HWONWH-*! 



in OS CM "ft <M OS < 



> Q rH • 

) o t- ■ 



N(NXWH<NONMQCONO 
>inCMirCOCOCp-*t<in-fCOincOCM 
irHi-HCOlOCOCOinj>OOOCOCOI- 



lO X (M M N N i 



■*CSOSN©lCHKO'MinHicxj00X 
H«Xlfi»i?lC©H<X-*«HC5l^ 
CSH>O3mcOOSt--OS-<tlf^©00I>'-f 



>©I^incO^CMCM-*0}C»©rHCMCOCOCM©CXlCT5lftCOi-HCMCMCMrHX>rHi^GOCNOS©00 

HHMlONroOlNNHHHHHNCO^CONM^XHNtOCCHNINH/olOXX 



CM CM (N CO CO CO 



cm "f © in co ( 
co co -* -* ■* • 



2 a 

0Q' M .3 

<o a> u 

S S2 ^ 

3 3+3 



I! 3 

2 3 «8 
*■*■> 3, 



CB4J •« 



CM^^osos©©cMrH^cMi-HCMrHCMco^©o>in^<MooincMCOooincMcoos^cot"-03 

^OCO^C^COLClC^01^(>3^rHC^COOOin^C>05Ir~I^COl«^t»rHrHt^OrHOi-(OS 

os' t> •*' -*' co' co' m" co co' in* •* m in in' in in in in in ■*£ in r» t- od os oo os i-h o os* o" cm' -*' co' co' 



HOWXHlO)COpXNMmOCON<NNHWp!OXMmOHirHO<OT|iM-*l 

OOtMOiniCrHcSosCOrHi-IOSOJCOOSt fOX»iMH;CB(00)WHNM>*HMi 

HatONOHNXH^MN^OafflMWt-HXt^MlCCOinfflMOHlOirjN' 



CO CO rH OS CO 



•NHOHHW'tO'* 
IHXOON-*OX 
I •* •"* CO CM CO 



8NN(M®N-*HH<OincXI01-*OOOMXinH'HOH<0 
cococor~rHincpco j^-»* hhxom»hhhn<ohhim 

" ' ONHNT) , WC<IOHX(MINCSNXOOS'<fU5COlM'*C-1 



rH rH CM CM CO < 



l»OM<ONOONiH»Xi 






93 3 

1-21 

"5 cp -3 
5 x » 

- 3^ 

S S3 

ft s 






ffl-«H(DH-^HXlO' 

.-*icococMcococoosm< 
o cm r- cm c 



l- oco i-~ in ■ 



• COOf~CMin CO rH CO rH© 
' CM i-H* OS* CM* 



CO CO CM O -* OS OS CO ( 

cocM"*r-coost^osJ 



OSNNHXOOOSHXHC 
(M(M(MCM-^^*0Ot~t^l(^COl 

'cocxioscomcMOscomoocoi 



icocoosooosoirco 

CO -f OS CM O O CO OS 

"*N<OMWNHffl 



iCOVClTfflXtOCUXHlNH'HCCOSNlCffltOinOlClO 
'COI^COCD'+lOSCOCOOSrHCOrHCMCOCOOSr^rHCOCO-*'* 
ICMCMCMmOOOCMOrHOOCOCOt^inj^inCOJ^COinr-CO 



rHCOinCOCOCOCOQOCOCOOOCT-.CO-fO! 

CCMNXHHOMNMMW-firiP! 

CMCM(MCMCMCMCMCMCSICMCM( 



cO'ticoinr^co-^'rHco' 

.00©"**rH-*t<r~COlAOS< 
ICMCOCOCOCMCMCMCMCMCMCMCOCOCO- 



? -6 

i (D 

! "i 
i 03 

h a 

I O 3- 



r^SO 



rHCMr-^rHCOgsr~CM00G0CDl>CO©-"©OiCpcO 

mcoNXc<iioo-*!DcviHXN-*5xa m os co 



CO t> CM rH OS 



3S 



NNNXMlft 



• t>co-*i^incocs)OcMcMinos<Mco 



©NXMOSfflfiOSHMNlCHrlH^Ni 



MNMNCOOMPl^CKffiOW 

iniooscot-incococMcoco^coco 



CO CO t- -* OS CM CM 

m co i-h im t— i os in 

■ O OS O CO OS CM CO 



cm i-h 6s in oo cb Os © ' 



lCM-fCOOOOOincOincOrHOS-^CDinrH-^1 
ISOlOtMNH'WH^NlCNOMHK 
.XlONH"HlOXHH<OXl>rl©XNI 



o os in o co< 



OS CM l^. CO OS O CO !>• CO I> CM CM m 



or~osc|osin-*-* 
. _m-*-f^!rHcoco — 

CMCMCMCMCMCMCMCMCM 



. _ oo co go co i- m i 

COCOOrHCOCMCMOOO-H<-rt'( 
_ "- COCO CO CM CO CO < 





3 O is 


o 


7HS 




Us 


CO 
<Ls 




its Ofl 


<o 


fl^o 


§ 






»2 


o 


fc 


o3 



CD -J ^ 



os m os 
i~- co © 



in 00 rH O0 CO CO ' 



-HOSCTS]^COincO-*CMr^-HCOOOSOCOrHinOSCOCOrH< 
OSrHOOCOincOrHOO-^CO-^OSinCMCOincOCDCO' 



HN-*NQ050NNCONN(N©Xu5«H!OC)SXCOOS-itllO(OMOC»'*HiMN 

MM<0'*MNinH'OH(N«)aXOlfiX'MHiin(NO<OHH«30!*XffllNCi:<p 
HlON-*0<OOSXHiHlQOOO«0©'*'*riNXXCSHCOXaOHHM5NOH' 



CM_CO 

m co co cm 



!OOOiei5XNMlPl«N»HOOWMN^ 

)lO(Ofl-iCinNOHClCNOO-l'OlXO'»X 

■ it<COOOOrH-H<CMrHOintt<rHOSCOCOt^COI>rHCMCO 



NNiUNNHCSCOi 



ISSSS 



oooooomor-o 



sooinoi— c^icc firscNXcsOHiM m-«i( 

Ss6SoSo383BS8S8888888S8SS8SSSS^g 



CO 00 CO CO 00 i 



;ggg§: 



172 



OUR FOREIGN COMMERCE. 



t^lOT-H-H^t^50U5< 



cNicocorHin©osco&cNcpr^rHinc»c»co;*eoi>^^cNcn 

NOOINKIM i-Tr-T 

^ £3 ^ 22 -- 1 c c2 <m 3 
coeomr-it^-co-»<— T 



■MMtTOHOOKMOMOOOKMMHinMHHOOa^lNM^^^NIMiHglH 



. 0--i 

to I 3«_g 

o 

c 



M-tOO<Dr-l'*Nain , *NN©-*<0N0!00inOOHOO00'*<#N0000OT|(in 



T-lr-li-ti-ltMNrHr-lrHl 



HMQOlO-HNfti ' 






NiffOrtH6o»ffiaooH!oi5'*o)No6ci3ti5oMOO!HaHoob)0'*ooodffiO!ot) 

!DNOl0's-l'U'n i "t00000HOfflOl0HiniXH>N©OH00ONNHt0- J -lOpOtfi 
lftMM^»'MH(OWlC-*l»WH6?Mlf!^W , inai'"HMMOLrHClP«)OOH 



. OHHNNM»QOCOXOlM< 



ffl id ■* •* ^ lO » IB ifi i 



9. S 

*- h O 

C ^ 22 

3 *■< s 



(^Sq 



l(N(N<N(M<M<M<M(M*^« 



■w eo o ■■*-<*■ co 



NinOONOini0H(N(N<0GCMN00HlflN<0H00i3)00OO 

MOaOi-f^ONOXINNONinHOOMOtCIMOlOH^CO-WOONOONiriri 

00O-H!000'*-l<0l3WOO«5O©ini0N00«)OHN01Nt0C",ve«)H(0<0H00O 



iN00-«Ht-K)(OieHl 

i i-i C- eg o» cQ si rH ** *~ ■ 

iMOOOWlONNOSNI 



IIDOOIOONNNHNN 
'NHNONimTNOftOl 



iCi500NN!M'*<MH(NON-*00U0a<0NCi)aMinHNlMMN-<t i a 
lOMfOOOOJOHHtOHON-l'OJINHirJCOOWlOmiroOW 
IIMNMIMHHINNININNMNHHININrtHNlNNMININMMM 



Si 




& 


5 a 








co 3 


2 


3- 








&•« 


fl 3 


3 


fa 


3, 


3 * 


2 


~S 






NQOH IfitONHl 



KOWlftO- 
ifflrilfiflil 

' 00 ■*" CO* "*' J 



l©^r1inCOlQlOCOCpiVCOOSOSOi-«*<< 
.<0>0-*r:«OCOmeNCO<NrHCMCOlc:tn<0< 



■* CO <D M lO I 



'OH01(0(M-*l>'^inffiHg0OOHMMmOHrt-*ilMa-**<oin«9« 
(D1000t-^N!CNt-O0)OMM'*N<00;'<l''*»OffilN00«0)N'*N 

•* cn as n ir to t> ©5 So cm © -# 



• co in co -h os os i 



OffiCp-*5DO 
NiaiBCH-HHNawioaiOWNOt-M -* CN O»00N 
bHMHCHO-HNI-WNOMlOOtOOO^t-COO^O 



lTtD©(Mir'NOH00aH' 4, NNl0Ol 

HHWHMMffiOOONaMN^aOl 



a) Jh 3 

•ofifl 






CO CO I 



iC OS CO 

to d n' ■* a n 



t<t-ICOI^t^rH-*CO-*C<It>' 



'NH00NM!Ot»ain 



5SSS 



NCOOOXiM 



imnojUNat-HWOHMaQ^OONlOiNHNNH-HtHMHCO^H^a- 
■MiMiMOON!0!0H'*®«5^O-HHINHIBHOa00MN«IHN»O'<C»aT 



C5 M LO N O H X I 



iOlO«5HCONOa©i 



IMlONCOHMCOi 



icOGscpoocoinco©-*on 



55 co co c 



GOcocpco©©o-H-r~iO 
©^^©cocncot-ii^co 

(M<N<MeOCOCOCOrH-*CO 



a-* s 

ill 

§ s 



. 0_ 



>(M CO <M <M CO in 00 I 



CX! lO -# -* rH OS 



Os in m cm in <M 



i^ iv co m co co t- 



OsroWincNCO-^Ofc-r-lininCOi^COr-l-ricp 

co^coivivtDtMosost-oc^incooso-^cS 

CO ^'ifltOMNlftlOO pH 1-4 W r-i rH 



-"r-.inoi-HW!OQO»010WCN10®H^eOH'HOepHOin'*'*!CMINa-*MH 

HI M--a^i0H7)O'>lQ0mM!»N!0M(«l>00lN00Oir.HMNinirWCMH«5C< 

C0aMNOif5'3bN«vr'aiNa-tMO(MO«SNHMHN0iOHM©N<0»00H*llO 

o co" vo in — T co" in 

e/i in vo co i~ in -n 

WOHt(||,(Mh 



O .0 1-00 1 — , — I • 
00 CO W 1^ M K . 
CO -t< i-W-~ OS t^. I 



iNMI 



©inCOCOcMCOCOCOGO 



o os m . 



I IN IOC 



n » m o cq o ci m h h cai n n a m m 



ClM^WOHHHNW^MiniriOHWaNeiXNfflHH 



CO< 



i co in in co co m o i 



2-5 °. 






t M GO i-l 00 OS rH lO OS I- CO CO r-f CO CO ! 

MOMHM'/loa^OO^HilWCSI 

HinooNoinm-*Nin©'*in(D< 



lOSCOCOCO-^lrHCOeOrHl 



i m -m 

i os- - 
, co © i 



•* n n in in i 



i co o in ' 

I CO iH CO i 
KM COp-' 



co n in » 10 co o 
i-i i-h co in os 



NHOIO 

osSoio 

' co co" 



i<Ni-©©©oocoosi^c>30s^co©in©eN!CO© 

iCDOOCOMCOinCOCbNONCOCOHCOOOONCO 

cooH-ttoincococoocoaaacoMiNNH 



MQ1CNM 



SCJ-ttCOCOCOHCOCOCOCCOinHCOHOCOCOCOt-OOaflCO'tiain 
ooaoaaOHN<NinNiMcO"*eoNOao!HNHMT[i{0'*'* 

rHiHi-l rH HHHr Ir-lr-^rHr-lrHrHfHr-l rHr-(r-<r-tr-fr-lr-lr-l 




CHIEF MANUFACTURING INDUSTRIES. 



173 



Chief manufacturing industries, showing sums paid in wages 
and number of employees. 

[From reports of the Bureau of the Census, Department of Commerce and 

Labor.] 







Num- 




Wage-earners. 


Value of 
products, 
including 

custom 
work and 


Industry. 


Cen 

.sus 
year. 


ber of 
estab- 
lish- 
ments. 


Capital. 


Aver- 
age 
num- 


Total 
wages. 








ber. 




repairing. 






Dollars. 




Dollars. 


Dollars. 


Agricultural imple- 


1880 


1,913 


62,109,668 


39.580 


15,359.610 


68,640,186 


ments. 


1890 


910 


, 145,313,997 


38,827 


18,107,094 


£ 1,271, 651 




1900 


715 


157,707,951 


46,582 


22,450,880 


101,207,428 




1905 


618 


196,740,700 


47,394 


25,002-,650 


112,007,344 


Boots and shoes 


1880 


1,959 


42,994,028 


111,152 


43,001,438 


166,050,354 




laao 


2,082 


95,282,311 


133,690 


60,667,145 


220,649,358 




1900 


1,599 


99,819,233 


141,830 


58,410,883 


258,969,5»0 




1905 


1,316 


122,526,093 


149,924 


69,059,680 


320,107,458 


Bread and other bak- 


1680 


6,396 


19,155,286 


22,488 


9,411,328 


65,824,8^6 


ery products. 


ISM) 


10,484 


45,758,489 


38,841 


19,120,529 


128,421,535 




1900 


14,836 


80,901,926 


60,192 


27,864,024 


175,368,682 




1905 


18,227 


122,363,327 


81,284 


43,179,822 


269,609,061 


Carriages and wag- 


1SS0 


3,841 


37,973,493 


45,394 


18,988,615 


64,951,617 


ons. 


1890 


4,572 


93,455,257 


56,525 


28,972,401 


102,680,311 




1900 


6,204 


109,875,885 


58,425 


27,578,016 


113,234,590 




1905 


4,956 


126,320,604 


60,722 


30,878,229 


12.3.332,976 


Cars, shop construc- 


1890 


716 


76,192,477 


106,632 


60,213,433 


129,461,698 


tion and repairs by 


1900 


1,293 


119,580,273 


173,652 


96,062,329 


218,238,277 


steam railr'd eo's.- 


1905 


1,141 


146,943,729 


236,900 


142,188,336 


309,863,499 


Cars, shop construe 


1890 


78 


2,351,162 


2,009 


1,411,205 


2,966,347 


tion and repairs by 


1900 


108 


10.781,939 


7,025 


4,404,593 


9,370,811 


street railway co's. 


190.5 


86 


12,905,853 


11,052 


7,012.798 


13,437,121 


Cars, steam and 


18S0 


130 


9,273,680 


14,232 


5,507,753 


27,997,591 


street railr'd , not 


1890 


88 


46,109,525 


33,139 


17,168,099 


73,385,852 


includ'g operations 


1900 


85 


95,939,249 


37,038 


16,938,170 


97,815.548 


of railway co's 


1905 


87 


101,154,750 


38,788 


23,087,400 


122,019,506 


Cheese, butter and 


1880 


3,932 


9,604,803 


7,903 


1,546,495 


25,742,510 


condensed milk. 


1890 


4,552 


16,016,573 


12,219 


4,248,854 


60,635,705 




1900 


9,242 


36,303,164 


12,799 


6,145,561 


130,783,349 




1905 


8,926 


47,255,556 


15,557 


8,412,937 


168,182,789 


Chemicals 


1880 


595 


28,983,458 


9,724 


4,222,663 


38,610,458 




1890 


563 


55,032,452 


15,038 


7,308,411 


59,352,548 




1900 


433 


89,069,450 


19,020 


9,393,236 


62,637,008 




1905 


448 


119,890,193 


24,525 


13,361,972 


92,088,378 


Clothing, men's 


1880 


6,166 


79,861,696 


160,813 


45,940.353 


209,548,-4 JO 




1S90 


4,867 


128,253,517 


144,926 


51,075,837 


251,019,609 




1900 


5,729 


120,547,851 


120,927 


45,496,728 


276,717,337 




1905 


4,501 


153,177,500 


137,190 


57,225.506 


355,796,571 


Clothing, women's... 


1880 


562 


8,207,273 


25,192 


6,661,005 


32,004,794 


m 


1890 


1,224 


21,259,528 


39,149 


15,428,272 


68,164,019 




1900 


2,701 


48,431,544 


83,739 


32,586,101 


159,339,539 




1905 


3,351 


73,947,823 


115,705 


51,180,193 


247,661,560 


Confectionery 


1880 


1,450 


8,486,874 


9,801 


3,242,852 


25,637,033 




1890 


2,921 


23,326,799 


21,724 


7,783,007 


55,997,101 




1900 


962 


26,319,195 


26,866 


8,020,453 


60,643,946 




1905 


1,348 


43,125,408 


36,239 


11,699,257 


87,087,253 


Cooperage 


1880 


3,898 


12,178,726 


25,973 


8,992,603 


33,714,770 




1890 


2,652 


17,806,554 


22,555 


10,056,249 


•38,617,9.56 




1900 


1,694 


21.777,636 


22,117 


8,786,428 


38,439,745 




1905 


1,517 


29,532,614 


21,149 


9,485. 155 


49,424,394 


Cordage and twine- 


1SQ0 


165 


7,140,475 


5,435 


1,558,676 


12,492,171 




1890 


1.50 


23,351,883 


12,385 


3,976,232 


33,312,559 




1900 


105 


29,275,470 


13,114 


4,113,112 


37,849,651 




no 5 


102 


37,110,521 


14,614 


5,338,178 


48.017.139 


Cotton goods 


1880 


1,005 


219,504,794 


185,472 


45.614.419 


210,950.383 




1890 


90.5 


351,020,843 


218, S76 


66,024,538 


267,981,724 




1900 


1,055 


467,240,157 


302,861 


86,689,752 


339,200,320 




1905 


1,154 


613,110,655 


315,874 


96,205.796 


450,467,701 


Electrical machinery, 


18S0 


76 


1,509,758 


1,271 


683,164 


2,655,036 


apparatus and sup- 


1890 


189 


18,907.337 


8,802 


4,517,050 


19,114.711 


plies. 


1900 


581 


83,659,921 


42,013 


20,579,194 


92,434, 135 




1905 


784 


174,066,026 


60,466 


31, S4 1,521 


140.809,369 


Flour and grist mill 


1S80 


24,338 


177,361,878 


58\407 


17,422,316 


505,185,712 


products. 


1890 


18,470 


208,473,500 


17.403 


18,138,402 


513.971,474 




1900 


9,476 


189,281.330 


32,226 


16,2S5,163 


501, 396, S01 




1905 


10,051 | 


265,117,434 


39,110 


19,822.196 


713,033,395 


Foundry and ma- 


1890 


4,984 


155.021,731 


145,650 


66,093,920 


215.142.011 


chine shop prod- 


1 800 


6,500 


383.257, 173 


231.331 


129,282,263 


413,197,118 


ucts. 


1900 


9,316 


663.414,323 


350,103 


182.096,007 


614. 156.218 




no5 


9,423 


936.416.978 


40-2.914 


229,869,297 


799,862,588 


Furnishing goods. 


1880 


161 


3,724,664 


11,174 


2.644*, 155 


11.506,857 


men's. 


1890 


586 


12,299,011 


20,778 


6,078,026 


29,870,946 




1900 


157 


20.575,961 


30,322 


9,730,066 


44.346, 182 




1905 


517 


28,048,584 


27,185 


8,760,108 


49, OS 


Furniture 


1880 


5,227 
1,919 


44,946,128 

80,780.939 


59 . 30 1 


28,695,080 

35.0iW,979 


77,845,725 




L890 


72,869 


111,743,080 




1900 


1,814 


101.181,394 




35,63 


125,815,986 




1905 


2,482 


152,712,732 


110,133 


49,883,235 


170,446,825 



174 



CHIEF MANUFACTURING INDUSTRIES. 



Chief manufacturing industries, showing sums paid in wages 
and number of employees — Continued. 







Num- 




Wage 


-earners. 


Value of 


Industry. 


Cen- 
sus 
year 


ber of 
estab- 
lish- 
ments. 


Capital. 


Aver- 
age 

num- 
ber. 


Total 
wages. 


products, 
including 

custom 
woik and 
repairing. 








Dollars. 




Dollars. 


Dollars. 


Glass 


1880 


169 


18,804,599 


24,177 


9,144,100 


21,154,571 




1890 


294 


40,966,850 


44,892 


20,885,961 


41,051,004 




1900 


355 


61,423,903 


52,818 


27,084,710 


56,539,712 




1905 


399 


89,389,151 


63,969 


37,288,148 


79,607,998 


Hardware 


1880 


492 


15,363,551 


16,801 


6,846,913 


22,653,693 




1890 


350 


26,271,840 


18,495 


8,656,067 


26,726,463 




1900 


381 


39,311,745 


-26,463 


11,422,758 


35,846,656 




1905 


445 


52,884,078 


31,713 


14,580,589 


45,770,171 


Jewelry - 


1880 


739 


11,431,164 


12,697 


6,441,688 


22,201,621 




1890 


783 


22,246,508 


13,880 


8,038,327 


34,761,458 




1900 


851 


27,871,924 


20,468 


10,643,887 


46,128,659 




1905 


1,023 


39,678,956 


22,080 


12,592,846 


53,225,681 


Leather, tanned, cur- 


1880 


5,628 


73,383,911 


40,282 


16,503,828 


200,264,944 


ried, and finished. 


1890 


1,787 


98,088,698 


42,392 


21,249,989 


172,136,0^2 




1900 


1,306 


173,977,421 


52,109 


22,591,091 


204,038,127 




1905 


1,019 


242,584,254 


57,239 


27,049,152 


252,620,986 


Liquors, malt 


1880 


2,191 


91,208,224 


26,220 


12,198,053 


101,058,385 




1890 


1,248 


232,471,290 


30,257 


20,713,383 


182,731,622 




1900 


1,507 


413,767,233 


39,459 


25,776,468 


236,914,914 




1905 


1,531 


515,636,792 


48,139 


34,542,897 


298,358,732 


Lumber and timber 


1880 


25,758 


181,465,392 


148,290 


31,893,098 


233,608,683 


products. 


1890 


22,617 


557,881,054 


311,964 


87,934,284 


437,957,382 




1900 


23,053 


400,857,337 


413,335 


148,007,845 


555,197,271 




1905 


19,127 


517,224,128 


404,626 


183,021,519 


580,022,690 


Lumber, planing-mill 


1880 


2,491 


38,070,593 


37,1S7 


14.431,654 


73,424,681 


products, including 


1890 


3,670 


120,271,440 


79,923 


42,221,856 


183,681,552 


sash, doors, and 


1900 


4,198 


118,948,556 


73,510 


32,621,704 


167,786,122 


blinds. 


1905 


5,009 


177,145,734 


97,674 


50,713,607 


247,441,956 


Marble and stone 


'1880 


2,846 


16,498,221 


21,471 


10,238,885 


31,415,150 


work. 


1890 


1,321 


24,041,961 


21,950 


15,314,598 


41,924,264 




1900 


1,655 


39,559,146 


30,641 


16,328,174 


42,230,157 




1905 


1,642 


66,526,724 


40,905 


25,032,725 


63,059,812 


Paper and wood pulp 


1880 


742 


48,139,652 


25,631 


8,970,133 


57,366,860 




1890 


649 


89,829,548 


31,050 


13,204,828 


78,937,184 




1900 


763 


167,507,713 


49,646 


20,746,426 


127,326,162 




1905 


761 


277,444,471 


65,964 


32,019,212 


188,715,189 


Petroleum, refining.. _ 


1890 


94 


77,416,296 


11,403 


5,872,467 


85,001,198 




1900 


67 


95,327,892 


12,199 


6,717,087 


123,929,384 




1905 


98 


136,280,541 


16,770 


9,989,367 


175,005,320 


Silk and silk goods_ 


1880 


382 


19,125,300 


31,337 


9,146,705 


41,033,045 




1890 


472 


51,007,537 


49,382 


17,762,441 


87,298,454 




1900 


483 


81,082,201 


65,416 


20,982,194 


107,256,258 




1905 


624 


109,556,621 


79,601 


26,767,943 


133,288,072 


Slaughtering and 


1880 


872 


49,419,213 


27,297 


10,508,530 


303,562,413 


meat packing, 


1890 


611 


98,190,766 


37,502 


20,304,029 


433,252,315 


wholesale. 


1900 


557 


173,866,377 


64.681 


31,033,850 


697,056,065 




1905 


559 


219,818,627 


69,593 


37,030,399 


801,757,137 


Slaughtering, whole- 


1890 


507 


18,696,738 


6,473 


4,000,947 


128,359,353 


sale, not including 


1900 


325 


14,933,804 


3,705 


2,358,403 


86,723,126 


meat packing. 


1905 


370 


17,896,063 


4,541 


3,236,573 


112,157,487 


Smelting and refin- 


1900 


47 


53,063,395 


11,324 


8,529,021 


165,131,670 


ing, copper. 


1905 


40 


76,824,640 


12,752 


10,827,043 


240,780,216 


Smelting and refin- 


1900 


39 


72,148,933 


8,319 


5,088,684 


175,466,304 


ing, lead. 


1905 


32 


63,822,810 


7,573 


5,374,691 


185,826,839 


Structural ironwork. 


1880 


220 


1.400.197 


1.934 


844.614 


3,410.086 




1890 


724 


21,968,172 


17,158 


10,235,701 


37,745,2)4 




1900 


697 


43,442,377 


24,903 


13,588,779 


66,927,305 




1905 


775 


76,598,507 


34,276 


19,760,210 


90,944,697 


Sugar and molasses, 


1880 


49 


27,432,500 


5,857 


2,875,032 


155,484,915 


refining. 


1890 


393 


24,013,008 


7,043 


2,385,654 


123,118,259 




1900 


657 


184,033,304 


14,129 


6,917,829 


239,711,011 




1905 


844 


165,468,320 


13,549 


7,575,650 


277,285,449 


Tinware, copper- 


1880 


7,693 


23,167,392 


27,116 


11,243,276 


50,183,811 


smithing, and sheet 


1890 


7,002 


38,434,900 


31,377 


15,610,265 


66,653,746 


iron working. 


1900 


1,846 


35,724,739 


28,315 


13,193,307 


63,812,787 




1905 


2,366 


124,500,133 


39,475 


20,608,179 


97,974,838 


Tobacco, chewing 


1S80 


477 


17,207,401 


32,756 


6,419,024 


. 52,793,056 


and smoking, and 


1890 


395 


30.841,316 


29,790 


6,947,158 


65,843,587 


snuff. 


1900 


437 


43,856,570 


29,161 


7,109,821 


103,754,362 




1905 


433 


178,847,556 


23,990 


6,775,325 


116,767,630 


Tobacco, cigars, and 


1S80 


7,145 


21,698,549 


53,297 


18,464,562 


63,979,575 


cigarettes. 


1890 


10,956 


59,517,827 


87,000 


36,475,060 


129,693,275 




1900 


14,522 


67,660,748 


103,365 


40,865,510 


159,958,811 




190") 


16,395 


145,135,945 


135,418 


55,864,978 


214,350,051 


Woolen goods 


1880 


1,990 


96,095,564 


86,504 


25,836,392 


160,606,721 " 




1890 


1,311 


130,989,940 


76,915 


26,139,194 


133,577,977 




1900 


1,035 


124,386,262 


68,893 


24,757,006 


118,430,158 




1905 


792 


140,302, 4S8 


72,747 


28,827,556 


x42,196,658 


Worsted goods 


1880 


76 


20,374,043 


18,803 


5,683,027 


33,549,942 ' 




1890 


143 


68,085,116 


42,978 


14,944,966 


79,194,652 




1900 


186 


132,168,110 


57,008 


20.092,738 


120.314,344 




1905 


226 


162,464,929 


69,251 


26,269,787 


165,745.052 



GROWTH OF THE COTTON INDUSTRY. 



173 



Cotton production and manufacturing in the United States, also 
imports and exports of cotton manufactures. 

[From the Statistical Abstract of the United States.] 





Total 
com- 
mer- 
cial 
crop. 


Taken for home con- 
sumption. 


Raw 

cotton 

imported. 


Exports 
of manu- 
factures 
of cotton. 






By 

North- 
ern 
mills. 


By 

South- 
ern 
mills. 


Total. 


I mports 
of manu- 
factures 
of cotton. 




In thousands of bales. 


Pounds . 

7,019,492 

5,115,680 

5,072,334 

3,924,531 

5,497,592 

7,973,039 

8,606,049 

20,908,817 

28,663,769 

43,367,952 

27,705,949 

49,332,022 

55,350,520 

51,898,926 

52,660,^363 

50,158, 15S 

67,398,521 

46,631,283 

98,715,680 

74,874.426 

48,840,590 

60,508,548 

70,963,633 

104,791,784 


Dollars. 
11,885,211 
11,836,591 
13,959,934 
14,929,342 
13,013,189 
10,212,644 
9,999,277 
13,604,857 
13,226,277 
11,809,355 
14,340,886 
13,789,810 
16,837,396 
21,037,678 
17,024,092 
23,566,914 
24,003,087 
20,272,418 
32,108,362 
32,216,304 
22,403,713 
49,666.080 
52,944,033 
32,305,412 




1884 

1885 

1886 

1887 

188S 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 


5,713 

5,706 

6,575 

6,499 

7.017 

6,939 

7,297 

8,674 

9,018 

6,664 

7,532 

9,837 

7,147 

8,706 

11,216 

11,256 

9.422 

10,339 

10,768 

10,674 

10,002 

13,654 

11,234 

13,540 


1,537 
1,437 
1,781 
1,687 
1,805 
1,790 
1,780 
2,027 
2,172 
1,652 
1,580 
2,019 
1,605 
1,793 
2,211 
2,217 
2,047 
1,964 
2,066 
1,966 
2,046 
2,292 
2^335 
2,510 


340 

316 

381 

401 

456 

480 

545 

613 

684 

723 

711 

852 

900 

999 

1,254 

1,415 

1,597 

1,583 

2,017 

1,958 

1,889 

2,270 

2,292 

2,495 


1,877 
1,753 
2,162 
2,088 
2,261 
2,270 
2,325 
2,640 
2,856 
2,375 
2,291 
2,871 
2,505 
2,792 
3,465 
3,632 
3,644 
3,547 
4,083 
3,924 
3,935 
4,562 
4,627 
5,005 


Dollars. 

29,074,626 

27,197,241 

29,709,266 

28,940,353 

28,917,799 

26,805,942 

29,918,055 

29,712,624 

28,323,841 

33,560,293 

22,346,547 

33,196,625 

32,437,504 

34,429,363 

27,267,300 

32,051.434 

41,293,239 

40,246,935 

44,460,126 

52,462,755 

49,524,246 

48,919,936 

63,043,322 

73,704,636 



Every dollar sent abroad to purchase goods that we can 
orodnce at home makes ns a dollar the poorer.— H. K. Thur- 
ber, in the American Economist. 

The safety and interest of the people require that they 
should promote such manufactures as tend to render them 
independent of others.— Washington. 

Above all thing's we should avoid the demagogue as a 
pestilence and take counsel only of reason and right.— Hon. 
C. W. Fairbanks, at St. Paul, 3Iinn., August 31, 1903. 

Mr. Bryan asks me what I would do with the trusts. 1 
answer that I would restrain unlawful -trusts with all the 
efficiency of injunctive process and would punish with all 
the severity of criminal prosecution every atempt on the 
part of aggregated capital to suppress competition. — Hon. 
Wm. H. Taft, at Columbus, Ohio. 

Duty determines destiny. Destiny which results from 
duty performed may bring anxiety and perils, but never 
failure and dishonor. Pursuing duty may not always lead 
by smooth paths. Another course may look easier and more 
attractive, bat pursuing duty for duty's sake is always sure 
and safe and honorable. — President McKinley at Chicago, Oct. 
19, 1S9S. 

Wo should no sooner debase our currency than -we should 
weaken our coast defenses. We should no more think of 
introducing unsound currency into our money system than 
we should think of weakening the steel armor plates upon 
our great battle ships -which are gallantly withstanding the 
storm of Spanish shot.— Hon. C. W. Fairbanks, in U. S. Senate, 
June 3, 1898. 

I have reviewed -what have properly come to be known 
as President Roosevelt's policies. I have attempted to point 
out one or two instances in which I would qualify details 
of future policies which he has sketched, but vt 1th these 
minor exceptions as to method, I am glatl to express my 
complete, thorough, and sincere sympathy with, and ad- 
miration for. the great conserving and conservative move- 
ment with which he has with wonderful success initiated 
and carried so far against bitter opposition, to remedy the 
evils of our prosperity and preserve to us the institutions 
we have inherited from our fathers.— Hon. Wm. H. Taft, at 
Columbus, Ohio. 

One vital, dominating fact confronts the Democratic 
party which no oratory, -which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



176 



IRON AND STEEL PRODUCTION. 



w *< eo •" n> 

§2? -is 

H,2q£S 



N©$(MOO*( 
lONNlOOOHl 



i O O <M tO C: ** IN 






<5? f- I> 00 CO ■ 

& 00 00 X O l 



tO'*oo®ffi'Minoo9 



LO 00 CO tO CM 

-<* LI"* CD iC TjH 






'©fflCHHHlT-'-f'MOOCO 
> Cs J> C5 lf 



IHNN«HHHH(NIMININM(MM' 



1 I-- Os CO m < 

©"co"r-ri 



lOI>C3S(Nr-IO50Sr-(C0< 



e 


3 


6C 


m 


t- 


+3 


«> 


b3 




OQ 


B 








Lj 


o 


<» 


3 


« 


od 







3<2o£ 

Pnfl.q 02 



jagxo.o 

3 ft J*3 



o-«q 
ui2 



ilOMNHOQOftNNN' 
. JHOlOW^lMOO-eHHi 
Os l^ tfi r-UO -* -* t-^ L- <N CO CO i 



OJNinoOOO-«tOQMt" 



> •* 3 in r- o -* M (M n .- 

ONOl-tHMOffiNI K CM CO CM -* CO 

©f-00©COWO)OOCMT-<COOO'+ l ©ComcDCMCM©: 
tD<ffllO^COCO^Tfi^^lftC^COCMcNSMrHl--<rHOq 



- fc; ri ti S3 < 



ICOlO-^-^COt^-^r-li-l©! 
i pH (M* rH rH CM CM* CM CM CM* r-H j 



CSlOOOlOlOOIfMOOCOlOOOf 

IflOlClNNiniflOOOMM 

i~~* r-i oo h- Q oo -* r- o> as' r-I < 

CO©^COC0CMC0COi\tC<lC0< 



SNOMOlONNffltvpOOOgO 



On 

> a Or 



o> .o 



fl £ ^ a r 1 - • 

<i> b 2 " 5 «9 'r 



IOWC I - M O OO N 00 N lO ■* N l 



<M CM CM 0-1 r-< i 



THC0<0"*OC0<MC0J 
■^(MCO-^O-l^ajrH^ 

aidffl'i-! ** cd co co i 



mONriO>-*C6l 



l^OOlOHi 



O « C N O N ^ 00 IT . 



> a as <m as oo 



i ci c a o; i 



"So » 



ir--'C'Hr-asocnHO'M-ioHL'"'M^ciNi-^C!inouoNMCo 
cOH3stoi.iMON-' co i - - co a co co 00 in in in 01 as >~ t- oo -* co © 

.MMTOlftCOOSiCO-tf-OOiCCsOXiCOSOOCOmiCC-lftOOaiHS 

2j t-"oo to M O H N c^ o i; 1^ -• N Q iCsT-*!-! !D M O Y) M t H OS CO*"oO Q 

ONWN<DirjNl? : MOOM!Mao>0'*HINHOHOr-">tlOilSoOOMM 

H rH r-TrHrH r-t rH <N~ CO CM CO ■* C0~"* -* •* CO~»Ot> 00 © ©'co'-* -** CO ©~CO CO 

rHi-li-lr-lr-(i-ICM(MeM 
V 

rH^CO©OOCOOJCOOOO<)CO©©C>300C01^©^COCM-Ht>CMC^©r-<rH 
Oi ir 1 -H to CM <N -M CO -h © I - © O V5 © CM 00 CO © -H in © IT CO oo as co 

i HW«in«iftMHNt01-.00OlOMCi:H(BOSNMMMINOe0HM 
"2 in -M CO in t- H CO N O M C-l CM- BNtDCOC-lMOOSOOHCJNINNH 

Cco^c^ao5^cOrHOO©©i^^c^Lr^cMiot^cMOOi^cM©©as©oo 

000HC0Lf'OO!0^-*2NC<irtH®^t0t0I^<0N0000O'*01MI> 

E^CO^tl^H-^-*-*lOtOtOI^Os CO cTl-~ tOOsOOOSi— IC0COlCM~-00tOCMlOlft 

rHiHrHr-lTHrHr-KNCNKN 



9 C3 

o o *» 



lOOOOOOXOOOOOOOOOOOOOOOOOOOOOOOOi 



' * * 



IRON AND STEEL INDUSTRY. 



177 



3 o 



oo -o 





lO 






is 


"M-BO^OOftCrlhHShH 


oi d ~ o a i - ci n l* lb o s w oo -m' oo" 

CDI-I- r-l HMO -tHHH 


6 
at 


-i o 


gi 


O<DHI-O-*OMON00aC'l®O'* 


I>- CM* CO — i © »n cii-tod <M ©' 1^ rr; 0O i-H 




■* i-i oo co c« eo oo ■»*< co i-h l- o ® oo 


! 1 


00 ^ 




*" 2 


CO - -^-,eo 


I.S 




12 


3? 


NM 1 1 © © © 1 © 100 1 IH-CN 


p 


© 1 - 1 1 r-I r-4* I> 1 00' I r-4 1 1 r-4 tJ © 

ci i iNtON i cm it- i i i- cd in 




<v 






o 


^ o 




u 






0) 

Oh 






o 


O -f 1 I 1ft C5 CO 1 r-l ICO 1 IHH» 




IS 


CM (>J 1 IHtON 1 Ifl It- 1 1 i— 1 CO 00 




r- i i oo eo 1-- i-* > r-< . ' i^^a 

-~-n II 1 1 CM 1 1 




■"* o 


CO II 1 ^-v 1 II 




-~ ' it i eo i ii 














»C»MO<OMOlONMttOHCKO 
© -* CO r-l -* © GO r-H Iff CO © Ol I- O0 lf> CO' 
© OO ift -f 1- 35 05 © -r (35 (35 CO O 00 r^ © 










© <0 ob <M Oi oTiP tH iH r-4 <N ■"*< r-> -" ** 




§ 


00 r-l in -H CO CO -« -H lOCONlC -" l 






CD 1^- CM -t' 00 m -p -" r-i i i— ' "'• 00 




»H 


fie- fie- - ~ .» - 

O0 © r-H © r-oi - " 
-44 <M -rl -* -r 0.1 O CO 










f» fie- i-l r-l 6«-CO r- 






fie- fie- ee- ee-ie- 




a-'NOONooirNHocHMOHcoo 
toooHooo«w^i-cec-'Oo- j (o 

©-♦(MK<DM<eCCMC-*Ht»oa) 
















OCSH(M(Da5NHtCHC.H'H-+l- 
CO -r (M CO r-l in CO HNMKO 




s 




lO t- CM 00 CM r-l CM -*N^OIO 






-fie-fie----- 

© r-l O © CM CM -H © 
<35 — 1 CM CM CO CM O CM 










ir< se- ^h r-i ee-moo 
fie- fie-fie- a? se 


w 

a 






a -f lo to h a « r] oo tp o oo oo m © co 

H -t « « 00 la -* -f is o on O -" -" h n 


X 




NXMIMH0S3J® H H '>l 31 CO lO -t< 








9 

V 




-* -* CM r-i CO OO O N (N O -r CJ N n 
-44 {CI-r-CO-H rH r-l r-l I- OO CD 
© "t rl (51 H CO fi©- — CM CM CD CN 


§ 






g©.---- 







-n © © 00 00 I- GO © 




i— 1 fie- 00 00 H{,1NH 

-* fie-fie- fie-co -*• 


<v 




fie- fie-se- 








rt 










w 






<N m oo © co in © o in co 
© © a-">i -* co m oo co 
t- © r-i>-© t- h«c» 




on 










-H .^^-n© — CO /-s ^N^^vHNtO 

Oi'-i"iii' , or}« ■# -i' m i— m oo 








y 


© -^Wr-I -* r-i -— • w w^CM in ^r 




00 


© ^.ir> ,_, CD©" 

© t- m C5 35 










CM ^-oe- r- 0-1 






fie- ce eo 






oo -* in r-i t- cm © cm © in 
© © in oo co 00 CO co ©op 
00 C- in©© -# rH © in 








CM 








cm /— «/-vi> -* in ss ^-v<m --^^-v© 00 CO 
CM -* -ri f— h^hi -^44 -rincM©© 




p 


t^^'-^ m ^w ^^ ^/^_ '©(MCM 




l^ 






j0 


r-l © in 1^ CO 






CM -44 .CO© 

r-< ee- no 

fie- ce oo 


1 




Ij 


1 




! ! 2 !!!'!!'■'!!'' S~ 






X5 ■ ; ' ' ' I o 






l 1 ? 1 1 1 1 " l 1 1 1 1 1 1 1 « 






r i a i- i i i i i i v 












i i C i i i i i i i m 






' ' ■ 71 1 1 ' «-< i-cJ 






Miiljll.li.ll']! 














^l^ldlPl^l^lllia 






— 1 « 1 r3 1 " . £ 1 » & (N 










B l'g'l»4'|.*|lS ft, ifl 1^ 






~' 1 « 1 'oj '0 ' Jm«i 






■2 '." 'a ! " <* jr § !|"3«" 

eg 1 w 1 » 1 - 1 iR 1 i" — • r» cj 

« :* 1 . 'I is : 3 !"*■§£ 

O O K ~"^ ryj <y rfi ^ V5 -, C 3, 










! - , » - 4J r- CU t-1 CU r< n-i 






4) S 4lJ) * J ~ C KT. K^l O O 










3 ^ Vs ^ •" C ;S &'o3 






!ziQccc»fSH «U^>H 






©^: 



d .« 



CO 5 



-^ 6.0 


Ee- 


Occ 




rU^ 




- C3 


cp 












CO O 


5?^ 


"S +3 


a >> 


IS 

& co 


O 


■fl 3< 


.22 .£ 


S^ 


OS S3 
to C 


g C3 


«X 


co a 



S 43 

2 d 
S « 
5 d 



-r CO M 

53 & a 



>^ a 



^5 a 
a o 
CO 

a t 3 

^ C3 t 

a, w o 

.S a> 
>,— -M 

Ian 






a>.^ 

C i.. co 



lis 



C ~ ^ *J 



i. eo -* 10 



178 



TEE WORLD'S PIG IRON PRODUCTION. 



World's Production of Pig Iron from 1800 to 1907. 

This table is given with the purpose of enabling a comparison 
of the growth of pig iron consumption in Great Britain under 
free trade with that of the protective countries, France, Ger- 
many and the United States. 

The world's production of pig iron from 1800 to 1907. 
[In gross tons of 2240 lbs.] 



Year. 



1800 
1810 
1850 
1820 
1830 
1840 
1860 
1870 
1880 
1885. 
1889. 
1895. 
1896 
1897. 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1903 
1907 



United 

States. 



Tons. 

40,000 

55,000 

564,000 

20,000 

165,000 

287,000 

820,000 

1,665,000 

3,835,000 

4,050,000 

7,603,000 

9,446,000 

8,623,000 

9,652,000 

11,773,000 

13,620,000 

13,789,000 

15,878,000 

17,821,000 

18,009,000 

16,497,000 

22,992,000 

25,307,000 

25,781,000 



Great 
Britain. 


Germany. 


France. 


Various. 


Total. 


Tons. 


Tons. 


Tons. 


Tons. 


Tons. 


190,000 


40,000 


60,000 


130,000 


460,000 


250,000 


46,000 


85,000 


180,000 


616,000 


2,250,000 


402,000 


570,000 


270,000 


920,000 


400,000 


90,000 


140,000 


385,000 


1,570,000 


680,000 


120,000 


220,000 


480,000 


2,677,000 


1,390,000 


170, '000 


3.50,000 


640,000 


4,426,000 


3,830,000 


530,000 


900,000 


1,100,000 


7,180,000 


5,960,000 


1,390,000 


1,180,000 


1,710,000 


11,905,000 


7,750,000 


2,730,000 


1,730,000 


2,090,000 


18,135,000 


7,420,000 


2,690,000 


1,630,000 


2,310,000 


18,100,000 


8,250,000 


4,530,000 


1,720,000 


3,060,000 


25,163,000 


7,703,000 


5,465,000 


2.006,000 


4,247,000 


28,867,000 


8,660,000 


6,271,000 


2,302,000 


5,001,000 


30,857,000 


8,796,000 


6,771,000 


2,444,000 


5,267,000 


32,930,000 


8,610,000 


7,196,000 


2,485,000 


5,808,000 


35,872,000 


9,421,000 


8,013,000 


2,537,000 


6,461,000 


40,055,000 


8,960,000 


8,384,000 


2,671,000 


6,686,000 


40,400,000 


7,929,000 


7,754,000 


2,351,000 


6,886,000 


40,798,00'J 


8,680,000 


8,395,000 


2,367,000 


6.876,000 


44,139,000 


8,935,000 


9,860,000 


2,796,000 


6,677,000 


46,277,000 


8,694,000 


9,899,000 


2,927,000 


7,322,000 


45, 339; 000 


9,608,000 


10,703,000 


3,028,000 


7,569,000 


53,900,000" 


10,109,000 


12,099,000 


3,267,000 


7,360.000 


58,142,000 


9,924,000 


12,672,000 


3,532,000 


7,591,000 


*59,500,000 



♦Preliminary estimate. 

Note.— Official figures of the respective national statistical offices of the 
United States, the United Kingdom, Germany and France. Figures for all 
other countries taken from ttie French and Swedish Mineral Statistics. 



Every man who has made wealth or used it in developing 
ftreai legitimate business enterprises has been of benefit and 
not harm to the country at large. — President Roosevelt at 
Spokane, Wash., May 26, 1903. 

The exposure and punishment of public corruption is an 
honor to a nation, not a disgrace. The disgrace lies in tol- 
eration, not in correction. — President Roosevelt's annual mes- 
sage, second session Fifty-seventh Congress. 

Whenever the Government revenues need an increase or 
readjustment I should strongly favor the imposition of 
a graduated inheritance tax and, if necessary for the reve- 
nues, a change in the Constitution authorizing a Federal 
income tax.— Hon. Wm. H. Taft, at Columbus, Ohio. 

Every citizen of the United States has an interest and 
a right in every election within the Republic where na- 
tional representatives are chosen. We insist that these laws 
relating to our national elections shall be enforced, not 
nullified.— President Garfield. 

The real evils connected with the trusts can not be reme- 
died by any change in the tariff laws. The trusts can be 
damaged by depriving them of the benefits of a protective 
tnrilT only on condition of damaging all their smaller com- 
petitors and all the wage-earners employed in the industry. 
President Roosevelt, at Cincinnati, September 20, 1902. 

Mr. Bryan is continually asking why some of the 
managers of unlawful trusts have not been convicted and 
sent to the penitentiary? I sympathize with him in his 
wi«h that this may be done, because I think that the im- 
prisonment of one or two would have a most healthy effect 
throughout the country; but even -without such imprison- 
ment, I believe that the prosecutions -which are now on 
foot and the injunctions which have already been issued 
have bad a marked effect on business methods.— Hon. Wm. 
H Taft, at Columbus, Ohio. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



AGRICULTURE. 



AgricnStnral Prosperity Under Republican Administration, 
Depression Under Democratic Rule. 

The farmers of the country create most of its wealth and, 
during the last eighteen years, sent abroad 65 per cent of oar 
exports in addition to producing much of the material from 
which manufactures are made that are used at home and abroad. 
The Republican administration has greatly developed agri- 
cultural investigation in the last eleven years, until scientific in- 
quiry is being made in all our States and Territories and in the 
isles of the sea under our flag, to the end that we may produce 
the necessities of life for ourselves and those for whom we are 
responsible. The power of the man and the acre to produce 
is'being increased all over the land ; new grains, g*rasses, legumes, 
fruits, fibers, and vegetables are being imported from foreign 
countries into continental United States and into our islands 
in order to diversify crops and bring- into productiveness sec- 
tions of our country that have heretofore been barren. The 
weather, the animals, the plant s,the forests, the soils, our roads 
our foods, our insect friends and enemies are being studied 
from the farmer's standpoint by over 2,000 scientists in the 
Department of Agriculture, which has grown in helpfulness every 
day since 1896. 

The farm value of the wheat, corn, and oat crops in 1907 was 
nearly two and one-half times that of 1896, the last year of 
the Cleveland administration. This is rather a startling state- 
ment, but it is borne out by the Yearbook published by the 
Department of Agriculture, and made up from official figures 
which have no partisan bias. 

For the year 1896 the farm value of corn was $491,000,000; 
that of the wheat crop, $311,000,000; and that of the oat crop 
$132,000,000; the total farm value of the three crops for that 
year being $934,000,000. 

The farm value of the corn crop in 1900 was $751,000,000; 
that of the wheat crop, $323,500,000 ; and that of the oat croj). 
$208,700,000, making the total farm value of the three crops 
in 1900 $1,283,000,000, or $349,000,000 more than the farm value 
of the same crops in 1896. 

In 1907 the farm value of the corn crop was $1,337,000,000; 
that of the wheat crop, $554,400,000 ; and that of the oat crop, 
$334,600,000 ; a total farm value of the three crops in 1901 of 
$2,226,000,000, or $943,000,000 more than the farm value of the 
same crops in 1900; and $1,292,000,000 more than their farm 
value in 1896. 

Increase in Farm Values. 
This increase in farm value under Republican administra- 
tions is not accidental. It is a matter of history that rural 
prosperity and Republican rule are coincident; it is equally a 
matter of record that agricultural depression, mortgage fore- 
closures, and low prices for farm* products accompany Dem- 
ocratic administration of national affairs. The prosperity of 
the farmer depends upon the prosperity of all other industrial 
elements of our population. When the industrial classes are 
employed at American wages their consumption of farm pro- 
duets is on a liberal scale and they are able and willing fco 
pay good prices for the necessities and Luxuries of life.: Under 
such conditions there is a good market for all the termer baa 
to sell. When the reverse is true and the workmen are idle or 

working scant time :it cu1 wages, they are I'orced to practice 
pinching economy and the farmer necessarily loses pari oi his 
market. The American farmer is prosperous when well paid 

179 



180 AGRICULTURAL PROSPERITY. 

workmen are carrying well-filled dinner pails, a condition which 
has accompanied .Republican supremacy since the birth of the 
party. 

The records for the last six administrations, four Republican 
and two Democratic, show that the farmers received more for 
their crops under Republican administrations than under Demo- 
cratic administrations. 

The farm value of the corn crops for the four years of 
Cleveland's first administration, from 1885 to 1888, aggregated 
$2,570,000,000. 

In the four years of the Harrison administration which 
followed, the farm value of the corn crop aggregated $2,831,000,- 

000, an increase in value of more than $260,000,000 over that oT 
this crop during the Cleveland administration. 

For the next four years, while Mr. Cleveland was President 
and Democratic policies were in force, the farm value of the 
corn crop aggregated $2,182,000,000, a decrease of $649,000,000 
from that during the Harrison administration. 

Then came the Republican administration of William Mc- 
Kinley and for the four years of that administration the farm 
value of the corn crop aggregated $2,434,000,000, or an increase 
of $252,000,000 over that of the last Democratic administration ; 
in the succeeding four years, 1901-4, it was $3,979,000,000, or 
nearly double the value of the crop of the last Democratic ad- 
ministration; while in the first three years of the present ad- 
ministration it was $3,620,000,000, or, in three years, $1,438,000,000 
more than in the four years of the second ' Cleveland adminis- 
tration. • 

The value of the live stock on the farms of the country, 
which was reported by the Agricultural Department, January 

1, 1897, as $1,655,000,000, was reported at $4,331,000,000 in 1907, 
an increase of $2,676,000,000 in eleven years. 

With the increased activity, increased earnings, and increased 
consumption, the farmer has received greatly increased prices 
for his productions. 

The Agricultural Department reports an increase of $332,000,- 
000 in the farm value of the cereals alone in 1900, as compared 
with 1896, and a further increase of $1,036,000,000 in 1907, as 
compared with 1896, making a total increase of $1,363,000,000, 
these figures representing the actual value upon the farm before 
leaving the hands of the producer, while other articles of farm 
production show an equal advance in value. 

The exportation of agricultural products increased from $574,- 
000.000 in 1896 to $845,000,000 in 1900, and to $1,055,000,000 in 
1907, a total increase of $481,000,000 in the mere surplus re- 
maining after supplying the g*reat and rapidly expanding home 
market. 

Wheat and Oats. 

The same law of fluctuation according to political policies 
in administration held good as to wheat and oats. The farm 
value of the wheat crop for the four years of the first Cleveland 
administration aggregated $1,285,000,000', and for the next four 
years, including the Harrison administration, the farm value 
of the wheat crop aggregated $1,513,000,000, an increase of 
$228,000,000 in the farm value of the wheat over that for the 
preceding Democratic administration. 

For the next four years, under the second Cleveland admin- 
i.sf ral ion, the farm value of the wheat crop aggregated $988,000,- 
000. a shrinkage of $525,000,000 in the value of the wheat crop 
Iron i the preceding four years under Republican adminis- 
tration. 

Again came a change of policy in government and during 
the first four years of the McKinley administration the wheat 
crop took another advance in value. For these four years of the 
McKinley administration the farm value of the wheat crop ag- 
gregated $1,464,000,000, an increase in value amounting to nearly 
$500,000,000. 

In the next four years, or during the McKinley-Roosevelt 
administration, the wheat crop was worth $1,843,000,000 to the 
farmers! or $855,000,000 more than during the second Cleve- 
land administration. For the succeeding three years of the 



Republ 
crop a 

ac in + 



AGRICULTURAL PROSPERITY. 181 



Republican administration, 1905-7, the farm value of the wheat 
crop amounted to $1,563,000,000, almost as much in three years 
as in the preceding- four years and $576,000,000 more than in the 
four years of the second Cleveland administration. 

The farm value of the oat crop in the four years of the 
first Cleveland administration aggregated $762,000,000; for the 
next four years, under the Harrison administration, the farm 
valne of the oat crop increased to $835,000,000; for the next 
four years, under Cleveland, this crop decreased in value to 
$699,000,000; for the next four years, tinder McKinley admin- 
istration, it increased to $741,000,000, and during the four years 
of the McKinley-Roosevelt administration, it was $1,145,000,000. 

During the last three years of the Republican administration 
its aggregate value has been $918,000,000, or $219,000,000 more 
in three years than during the preceding four years of the second 
Cleveland administration. 

The farm value of the hay crop in 1896 was $388,000,000; 
in 1900 it was $445,500,000; and in 1907 it was $1,336,901,000. 

The farm value of the potato crop in 1896 was $72,000,000; 
in 1900 it was $90,800,000; and in 1907 it was $183,900,000. 

Farm Animals. 

During the eleven years of Republican administration, the 
farm animals of the country have increased in value from 
$1,655,000,000 on January 1, 1897, to $4,331,000,000 on January 
1, 1908. 

The number of horses has increased from 14.365.000 to 19,- 
992,000; and their value from $453,000,000 to $1,868,000,000. 

The number of mules has increased from 2,216,000 to 
3,869,000 and their value from $92,000,000 to $417,000,000. 

The number of milch cows has increased from 15,942,000 to 
21,194,000, and their value from $369,000,000 to $650,000,000. 

The number of cattle other than milch cows has increased 
from 30,508,000 to 50,073,000, and their value from $508,000,000 
to $846,000,000. 

The number of sheep has increased from 36,819,000 to 54,- 
631,000 and their value from $67,000,000 to $212,000,000. 

The number of swine has increased from 40.600,000 to 56.- 
084,000, and their value from $166,000,000 to $330,000,000. 

It will readily be perceived from the foregoing figures that 
the increase in total value is far more tnan proportional 
to the increase in number. The total value of sheep, for ex- 
ample, is more than thrice; that of mules, three and one-half 
times; and that of horses more than four times as great as it 
was when the Republicans took hold of the administration of 
the country eleven years ago. 

The "man with the hoe" has only to look at the record to 
see which way points to prosperity. 

Value of Farm Animals under Harrison, Cleveland, McKin- 
ley and Roosevelt. 

After lands and improvements, the greatest item of wealth 
of the American farmer is his live stock, and the value of such 
farm stock is a perfect barometer of his financial condition. 
Practically the highest point ever reached up to that time was 
at the close of 1892, the last year of the Harrison administration, 
when the valuation was $2,462,000,000, the country being pros- 
perous, labor fully employed, and wages good. The lowest 
point reached in the last 23 years was at the close of 1896, 
when mills were closed, fires drawn, labor idle, capital 
in hiding, and business confidence destroyed by four years of 
Democratic administration. In four years the shrinkage of this 
form of farm wealth had amounted to 33 per cent, making $807.- 
000,000 the price which the owners of live stock paid for fcfie 
Democratic experiment of 1892. In the years of industrial ac- 
tivity which followed the election of McKinley, the value of 
live stock has kept pace upward with the increased earning 
and spending capacity of American labor, and on January i . 
1900, it had advanced to $2,288,000,000, or a rise of $633,000,000 
or 32 per cent, from the depths of depression. The. figures in 
detail, as shown in the official reports of the Department of 
Agriculture, are as follows; 



182 



AGRICULTURAL PROSPERITY. 

Value of live stock. 



Jan. 1, 1892, Jan. 1, 1897, Jan. 1, 19Q0, 
Harrison. Cleve.and. McKinley. 



Horses - 

Mules 

Coivs -__ 
Cattle '__ 
Sheep ___ 
Hogs -— 

Total 



$1,007,593,636 
171,882,070 
351,378,132 
570,749,155 
116,121,290 
2-41,031,415 



Jan. 1,1904, Jan. 1,1908, 
Roosevelt. * Roosevelt. 



2,461,755,* 



$452,649,306 

92,302,000 

369,239,993 

507,929,421 

67,020,942 

166,272,770 



1603, 969, 042;$1, 136, 940, 29S!$1, 867, 530, 000 
111,717,092 217,532,832 416,939,030 



1,655,414,612 



514,812,106 
689,487,260 
122,665,913 
245,725,000 



2,288,375,413 



508,841,489 
712,178,134 
133,530,099 
289,224,627 



,247,479 



650,057,000 
845.958,009 
211,736,000 
339,030,000 



4,331,230,000 



EXCHANGE VALUE OF FARM PRODUCTS. 

Prices of Raw Materials as Compared 'with Prices of Manu- 
factured Articles, 1896 and 1907. 

During- the last few. years, when prices in general have ad- 
vanced, it is interesting to determine in what degree the pro- 
ducer of the farm products has been benefited by the rise. 

The table which follows has been prepared from official fig- 
ures published in Bulletin No. 75 of the United States Bureau of 
Labor, and shows the per cent of advance in 1907 as compared 
with 1896, the last year of Democratic administration, the com- 
modities being grouped as in the original source. The compari- 
sons are between wholesale prices, as in the language of the origi- 
nal report "they are more sensitive than retail prices and more 
quickly reflect changes in conditions." 

Comparing 1907 with 1896, farm products show an advance of 
75.10 per cent; that is, for every $100 received from the sale of 
farm products in 1896 the farmer received in 1907 $175. lb for the 
same quantity. 

Food, etc., advanced 40.57 per cent ; cloths and clothing, 38.77 
per cent ; fuel and lighting, 29.43 per cent, etc. It is seen that the 
advance in farm products has been much greater than - in any of 
the other groups of commodities, as compared with fuel and 
lighting and with house furnishing goods it being more than 
twice as great, while as compared with drugs and chemicals the 
advance has been more than four times as great. It will likewise 
be observed that the wholesale prices of food have increased 
much more than the retail prices. 

The purchasing power of farm products in 1907 increased 
materially over 1896. The same quantity of farnl products would 
purchase in 1907 24.56 per cent more food than in 1896. It would 
purchase 26.18 per cent more cloths and clothing, 35.28 per cent 
more of the articles included in the fuel, and lighting group, 14.41 
per cent more metals and implements, 11.33 per cent more lumber 
and building materials, 47.94 per cent more drugs and chemicals, 
38.89 per cent more house furnishing goods, and 25.92 per cent 
more of the articles included in the miscellaneous group. 

This shows that no one has been benefited by the advance in 
prices as'mucli, as the farmer; that in 1901 the price of farm pro- 
duct Is was 15.10 per cent, or three-fourths greater than in 1896; 
that even when the advance in price of other articles is consid- 
ered the purchasing power of farm products in 1907 was, when 
com pared with other (/roups of articles, from 11.33 per cent to 
.'il.O.'i per vent (/reader than in 1896. 

The following table shows the comparisons : 



The leader of the Republican x»nrty during: the Civil 
War was Abraham Lincoln. In all the varieties of contro- 
versy which if lias since had to deal, it has never lost the 
Inspiration of . his leadership. — Hon. Wm. H. Taft, at Kansas 
< ify, SIo. 

In flic struggle for higher, things, association of men 
ami of women everywhere, organized for worthy purposes, 
can, because of flic strength anil power that come from or- 
ganization, evert a large influence for good. — Address of Sec- 
retary Cortelyou, at the annual hanq.net of the Auburn Busi- 
ness Men's Association, Auburn, N. Y., Wednesday, April 22. 
1908. 




PRICES OF FARM PRODUCTS. 



183 



rative advance in the price of farm products and other 
(/roups of commodities, 1901, compared with 1896. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Groups. 



Farm products 

Fo^d, etc 

Cloths and clothing 

Fuel and lighting 

Metals and implements 

Lumber and building material 

Drugs and chemicals 

House furnishing goods 

Miscellaneous articles 

All commodities 



Advance. 


Purchasing 




power. 


Per cent. 


Per cent. 


75.10 




40.57 


24.56 


38.77 


26.18 


29.43 


35.2i 


53.04 


14.il 


57.28 


11.33 


18.36 


47.94 


26.06 




3.). 06 


25.j2 



43.25 



22.23 



It is interesting to notice in the tables which follow the com- 
parative advance in the price of certain related commodities: The 
average price in 1907 has been compared with the average price 
in 1896. In practically every case the raw material advanced 
more than the finished product. 

The first table shows that live cattle advanced 39.18 per cent, 
while fresh beef advanced but 26.74 per cent. With the same 
weight of live cattle 9.82 per cent more fresh beef could be pur- 
chased in 1907 than in 1896. 

Hogs advanced 77.78 per cent and smoked hams 38.20 per 
cent. With the same weight of live hogs 28.64 P&r cent more ham 
could be bought in 1907 than in 1896. 

Sheep which the farmer sells advanced 61.25 per cent; mutton 
which the workingman buys advanced 39.93 per cent. With the 
same weight of sheep 15.24 per cent more mutton could be pur- 
chased in 1907 than in 1896. 

Corn advanced 104.72 per cent, while corn meal advanced but 
69.90 per cent. With the same quantity of com 20.5 per cent 
more com meal could be purchased in 1907 than in 1896. 

Wheat, which the farmer raises, advanced 41.45 per cent, while 
wheat flour for everybody's use advanced 19.08 per cent. That is, 
icith the same quantity of wheat 18.79 per cent more flour could 
be purchased in 1907 than in 1896. 

Raw cotton advanced 50.00 per cent, cotton bags 51.20 per 
cent, calico 27.50 rjer cent, cotton flannels 48.56 per cent, cotton 
thread 35.34 per cent, cotton yarns 43.98 per cent, denims 39.85 
per cent, drillings 46.91 per cent, ginghams 38.64 per cent, cotton 
hosiery 7.62 per cent, print cloths 84.16 per cent, sheetings 35.73 
per cent, shirtings 40.35 per cent, and tickings 34.79 per cent. The 
average advance for cotton goods was but 41.07 per cent, against 
50.00 per cent for the raw cotton. 

With the same quantity of rare cotton 6.S3 per cent more 
manufactured cotton goods could be purchased in 1907 than in 
1896. ' 

Wool shows an advance of 72.10 per cent, blankets (all wool) 
33.26 per cent, broadcloths 46.30 per cent, carpets 36.59 per cent, 
flannels 44.15 per cent, horse blankets (all wool) 44.16 per cent, 
overcoatings (all wool) 43.94 per cent, shawls 20.09 per cent, 
suitings. 51.59 per cent, underwear (all wool) 24.92 per cent, 
women's dress goods (all wool) 76.65 per cent, and worsted varus 
75.45 per cent — an average advance for woolen goods of 14.06 per- 
cent, while the raw material — wool — advanced 72.10 per cent. Or 
with the same quantity of wool l!K'/6 per cent more manufactured 
woolen floods could he bought in 1907 than in 1896. 

The following table shows this information in tabular form: 



Comparative advance in prices of certain related commodities. 
1907. compared with 1896. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 
^ Per cent. 

Cattle 39.18 

Fresh beef :_Y>.74 



184 PRICES OF FARM PRODUCTS. 

Per cent. 

Hogs -. 77.78 

Hams • 38.20 

Sheep 61.25 

Mutton 39.93 

Corn 104.72 

Corn meal 69.90 

Wheat *. 41.45 

Wheat flour 19.08 

Cotton— Upland middling 50.00 

Cotton bags 51.20 

Calico 27.50 

Cotton flannels 48.56 

Cotton thread • 35.34 

Cotton yarns 43.98 

Denims ■• 39.85 

Drillings 46.91 

Hosiery (cotton) 7.62 

Print cloths 84.16 

Sheetings 35.73 

Shirtings 40.35 

Tickings 34.79 

Average for cotton goods 41.07 

Wool 72.10 

Blankets (all wool) 33.26 

Broadcloths t 46.30 

Carpets 36.59 

Flannels 44.15 

Horse blankets (all wool) 44.16 

Overcoatings (all wool) 43.94 

Shawls 20.09 

Suitings 51.59 

Underwear (all wool) 24.92 

Women's dress goods (all wool) 76.65 

Worsted yarns 75.45 

Average for woolen goods 44.06 



Market Value of Farm Products in 1896 and 1907 when meas- 
ured by the Wholesale Prices of Staple Articles. 

The farmer and stock raiser measures the value of his grain 
and stock not only by the amount of money he will receive per 
bushel or per pound, but also by the value of such articles as he 
must buy for use by his family and on the farm. 

No official retail prices, other than for certain articles of food, 
have been published for recent years, but the United States Bu- 
reau of Labor in its bulletin of March, 1908, published wholesale 
prices of the staple articles in general use. From this publication 
the following tables have been prepared, showing the value of 
corn, wheat, oats, cattle, hogs, and dairy butter in 1896 and 1907. 
when measured by the value of other staple articles which the 
fa rmer must buy. 

While these figures do not represent the actual purchasing; 
power (as all prices are wholesale), yet the figures shown for the 
two years, 1896 and 1907, are in practically the same proportion 
as retail prices would show. 

Ten bushels of corn in 1896 was equal in value to 20.9 pounds 
of Rio coffee, while in 1907 it was equal to 80.2 pounds, or about 
four times as much. In 1896 10 bushels of corn was equal in value 
to 56.9 pounds of granulated sugar, in 1907 equal to 113.5 pounds; 
in L896 equal to 49.1 yards of calico, in 1907 to 87.7 yards; in 1896 
equal to 54.7 yards of gingham, in 1907 to 80.2 yards; in 1896 
to II.") yards of Indian Head sheeting, in 1907 to 63.2 yards; in 
1896 to 37.7 yards of Lonsdale shirtings, in 1907 to 51.5 yards; in 
L896 to l'.» bushels of stove coal (anthracite), in 1907 to 30.7 
bushels; in 1896 to 24.8 gallons of refined petroleum, in f907 to 
39.2 gallons; in 1896 to 95 pounds of 8-penny cut nails, in 1907 to 



PRICES OF FARM PRODUCTS. 



185 



244 pounds; in 1896 to 88 pounds of 8-penn}^ wire nails, in 1007 to 
249 pounds; in 1896 to 10.7 ounces of quinine, in 1907 to 29.7 
ounces. It must be borne in mind that these values are based on 
the average yearly prices of these articles. 

The comparative values of corn, wheat, oats, cattle, hogs, and 
dairy butter presented in the tables which follow show wonderful 
increases : 



Value of 10 bushels of corn in 1896 and 1901 when measured by 

tlie wholesale prices of the following staple articles. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



Coffee, Rio, No. 7 pounds 

Sugar, granulated pounds 

Tea, Formosa, tine pounds 

Shoes, men's calf bal., Goodyear welt pairs 

Shoes, women's solid grain pairs 

Calico, Cocheco prints yards 

Denims, Amoskeag yards 

Drillings, brown, Pepperell yards 

Ginghams, Amoskeag yards 

Hosiery, women's cotton hose, 26 to 28 oz pairs 

Overcoatings, chinchilla, cotton warp yards 

Sheetings, bleached, 10-1, Wamsutta S. T yards 

Sheetings, brown, 4-4, Indian Head yards. 

Shirtings, bleached, 4-4, Lonsdale yards 

Suitings, indigo blue, all wool, 14 oz. Middlesex yards 

Tickings, Amoskeag, A. C. A yards 

V. o lien's dress goods, cashmere, cotton warp, Atlantic F__yards 

( toal, anthracite, stove bushels 

Petroleum, refined, 150° test gallons 

Nails, cut, S-penny, fence and common pounds 

Nails, wire, 8-penny, fence and common pounds 

Carbonate of lead (white lead), American, in oil pounds 

Cement, Portland, American barrels 

Quinine, American ounces. 

Glassware, tumblers, V 3 pint, common 



1896. 



20.9 
56.9 
10.0 

a 

c 
49.1 
26.1 
45.0 
54.7 
39.0 

5.9 

8.8 
41.5 
37.7 

2.3 
25.3 
20.3 
19.0 
24.8 
95.0 
88.0 
49.9 

1.3 

10.7 

172.0 



1907, 



113.5 
23.0 
b 

d 

87.7 

38.2 

64.0 

80.2 

76.0 

10.8 

17.3 

63.2 

51.5 

3.1 

38.5 

23.6 

30.7 

39.2 

244.0 

249.0 

75.8 

3.2 

29.7 

422.0 



a 1 pair and 18 cents over, 
c 3 pairs and 3 cents over. 



b 1 pair and $2.48 over, 
d 5 pairs and 25 cents over. 



Value of 10 bushels of wheat in 1896 and 1901 when measured by 
the wholesale prices of the following staple articles. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



Coffee, Rio. No. 7 pounds- 
Sugar, granulated pounds. 

Tea, Formosa, fine pounds- 
Shoes, men's calf bal., Goodyear welt pairs. 

Shoes, women's solid grain pairs. 

Calico, Cocheco prints yards. 

Denims, Amoskeag yards. 

Drillings, brown, Pepperell » yards. 

Ginghams, Amoskeag yards. 

Hosiery, women's cotton hose, 26 to 28 oz pairs. 

Overcoatings, chinchilla, cotton warp yards. 

Sheetings, bleached, 10-4, Wamsutta S. T yards. 

Sheetings, brown, 4-4, Indian Head yards. 

Shirtings, bleached, 4-4, Lonsdale yards. 

Suitings, indigo blue, all wool, 14 oz., Middlesex yards- 
Tickings, Amoskeag, A. C. A yards. 

Women's dress goods, cashmere, cotton warp. Atlantic P__yards. 

Coal, anthracite, stove lnis tels- 

Petroleum, refined, 150° test gallons- 
Nails, cut, 8-penny, fence and common pounds. 

Nails, wire, 8-penny, fence and common pounds. 

Oarbonate of lead (white lead), American, in oil pounds. 

Oement, Portland, American pounds. 

Quinine, American..' ounces.. 

Glassware, tumblers, % pint, common --. 



52.0 

141.5 

24.8 

a 

c 

122.2 

64.9 

111.9 

135.9 

98.0 

14.7 

21.9 

103.1 

93.6 

5.6 

62.!) 

50.5 

47.3 

61.7 

2S6.0 

219.0 

124.0 

3.2 

26.7 

427.0 



137.9 

195.1 

3'). 4 

b 

d 

150.7 

65.7 

110.0 

137.9 

131.0 

18.5 

20.7 

108.7 

88.5 

5.3 

66.1 

10.6 

52.7 

(37.4 

420.0 

420.0 

130.2 

5.5 

51.1 

726.0 



a 2 pairs and $1.61 over, 
e 7 pairs and 56 cents over. 



b 3 pairs and 67 cents over, 
d 9 pairs and 1 cent over. 



186 



PRICES OF FARM PRODUCTS. 



Value of 10 bushels of oats in 1S96 and 1907 when measured by 
the luholesale prices of the following staple articles. 
[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



Coffee, Rio, No. 7 - pounds.. 

Sugar, granulated pounds— 

Tea, Formosa, line pounds- 
Shoes, men's calf bal., Goodyear welt pairs.. 

Shoes, women's solid grain pairs— 

Calico, Cocheco prints yards'— 

Denims, Amoskeag yards— 

Drillings, brown, Pepperell yards:,- 

Ginghams, Amoskeag yards- 
Hosiery, women's cotton hose, 26 to 2a oz pairs.. . 

Overcoatings, chinchilla, cotton warp yards- 
Sheetings, bleached, 10-4, Wamsutta S. T yards— 

Sheetings, brown, 4-4, Indian Head yards— 

Shirtings, bleached, 4-4, Lonsdale yards.. 

Suitings, indigo blue, all wool, 14 oz., Middlesex yards.. 

Tickings, Amoskeag, A. C. A — .yards— 

Women's dress goods, cashmere, cotton warp, Atlanlij F_. yards— 

Coal, anthracite, stove bushels. . 

Petroleum, refined, 150° test gallons.. 

Nails, cut, 8-penny, fence and common pounds.. 

Nails, wire, 8-penny, fence and common _._ pounds— 

Carbonate of lead (white lead), American, in oil pounds.. 

Cement, Portland, American barrels— 

Quinine, American ounces.. 

Glassware, tumblers, % pint, common 



1907. 



14.6 


68.4 


39.7 


96.8 


7.0 


19.6 


a 


b 


c. 


d 


34.3 


74.8 


18.2 


32.6 


31.4 


54.6 


38.2 


68.4 


28.0 


65.0 


4.1 


9.2 


6.2 


14.8 


29.0 


53.9 


26.3 


43.!' 


1.6 


2.6 


17.7 


32.8 


14.2 


20.2 


13.3 


26.1 


17.3 


33.4 


66.0 


208.0 


62.0 


212.0 


34.8 


64.6 


0.9 


2.7 


7.5 


25.4 


L20.0 


360.0 



a Lacks 60 cents of price of 1 
c 2 pairs and 10 cents over. 



b 1 pair and $1.70 over. 

d 4 pairs and 48 cents over, 



Value of hogs (heavy) per 100 pounds in 1896 and 1901 when 
measured by the ivholesale prices of the following staple 
articles. 
[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



Coffee, Rio, No. 7 : _._ .pounds 

Sugar, granulated pounds 

Tea, Formosa, fine pounds 

Shoes, men's calf bal., Goodyear welt pairs 

Shoas, women's solid grain pairs 

Calico, Cocheco prints yards 

Denims, Amoskeag yards 

Drillings, brown, Pepperell yards 

Ginghams, Amoskeag yard? 

Hosiery, women's cotton hose, 26 to 28 oz pairs 

Overcoatings, chinchilla, cotton warp yards 

Sheetings, bleached, 10-4, Wamsutta S. T . yards 

Sheetings, brown, 4-4, Indian Head yards 

Shirtings, bleached, 4-4, Lonsdale yards 

Suitings, indigo blue, all wool, 14 oz. , Middlesex yards 

Tickings, Amoskeag, A. C. A .... -_ yards 

Women's dress goods, cashmere, cottco warp, Atlantic F__yards 

Coal, anthracite, stove bushels 

Petroleum, refined, 150 5 test gallons 

Nails, cut, 8-penny, fence and common pounds 

Nails, wire, 8-penny, fence and common pounds 

Carbonate of lead (white lead), American, in or! pounds 

Cement, Portland, American barrels. 

Quinine, American m ounces 

Glassware, tumblers, % pint, common 



27.2 
74.1 
13.0 

a • 

c 
61.0 
34.0 
53. 6 
71.1 
51.0 

7.7 
11.5 
54.0 
49.0 

3.0 
33.0 
26.4 
24.8 
32.3 
124.0 
115.0 
64.9 

1.7 

11.0 

224.0 



1907. 



92.4 

130.7 

26.4 

b 

d 

101.0 

44.0 

73.7 

92.4 

88.0 

12.4 

19.9 

72.8 

59.3 

3.6 

44.3 

27.2 

35.3 

45.2 

281.0 

287.0 

87.2 

3.7 

34.3 

486.0 



a 1 pair and 96 cents over. 
c 3 pairs and 81 cents over. 



b 2 pairs and 48 cents over 
d 6 pairs and 4 cents over. 



Whenever the interstate eommerce commission deems it 
import lint as an ai«l in fixing; rates to determine what it 
would eost now to rebuild any railroad, it has complete 
power to do so.— Hon. Wm. H. Taft, at Columbus, Ohio. 

For an individual as for a party, a good record is a good 
platform to stand on. Fremont, Lincoln to MeKinley and 
Roosevelt— what a record, and what an assurance for the 
future.— Hon. George B. Cortelyou, in an address to the 
New York Slate League of Republican Clubs, November 5, 
1904. 



PRICES OF FARM PRODUCTS. 



187 



Value of cattle (good to extra steers) per 100 pounds in 1896 and 
1907 when measured by the wholesale prices of the following 
staple articles. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



1907. 



Coffee, Rio, No. 7 pounds- 
Sugar, granulated pounds.. 

Tea, Formosa, fine pounds.. 

Shoes, men's calf bal., Goodyear welt pairs.. 

Shoes, women's solid grain pairs.. 

Calico, Cocheco prints yards.. 

Denims, Amoskeag yards.. 

Drillings, brown, Pepperell yards.. 

Ginghams, Amoskeag yards.. 

Hosiery, women's cotton hose, 26 to 28 oz •_ pai^— 

Overcoatings, chinchilla, cotton warp yards.. 

Sheetings, bleached, 10-4, Wamsutta S. T yards.. 

Sheetings, brown, 4-4, Indian Head. yards.. 

Shirtings, bleached, 4-4, Lonsdale yards.. 

Suitings, indigo blue, all wool, 14 oz. , Middlesex yards- 
Tickings, Amoskeag, A. C. A yards.. 

Women's dress goods, cashmere, cotton warp, Atlantic F_. yards.. 

Coal, anthracite, stove bushels.. 

Petroleum, refined, 150° test gallons.. 

Nails, cut, 8-penny, fence and common pounds.. 

Nails, wire, 8-penny, fence and common.. pounds.. 

Carbonate of lead (white lead), American, in oil pounds.. 

Cement, Portland, American v barrels.. 

Quinine, American ounces.. 

Glassware, tumblers, % pint, common 



36.0 


93.9 


97.8 


132.8 


17.2 


26.9 


a 


b 


c 


d 


84.8 


102.6 


44.9 


44.7 


77.4 


74.9 


93.9 


93.9 


68.0 


89.0 


10.2 


12.6 


15.2 


20.3 


71.3 


74.0 


64.7 


60.3 


3.9 


3.6 


43.5 


45.0 


34.9 


27.7 


32.7 


35.9 


42.7 


45.9 


163.0 


286.0 


152.0 


292.0 


85.8 


88.6 


2.2 


3.8 


18.4 


34.8 


296.0 


494.0 



a 1 pair and $2.03 over, 
c 5 pairs and 18 cents over, 



b 2 pairs and 57 cents over, 
d 6 pairs and 14 cents over. 



Value of 20 pounds of butter (New York State dairy) in 1S96 
and 1907 when measured by the wholesale prices of the fol- 
lowing staple articles. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



1896. 



1907. 



Coffee, Rio, No. 7 pounds- 
Sugar, granulated pounds.. 

Tea, Formosa, fine pounds.. 

Shoes, men's calf bal., Goodyear welt pairs- 
Shoes, women's solid grain pairs.. 

Calico, Cocheco prints yards.. 

Denims, Amoskeag yards.. 

Drillings, brown, Pepperell yards.. 

Ginghams, Amoskeag yards.. 

Hosiery, women's cotton hose, 26 to 28 oz pairs.. 

Overcoatings, chinchilla, cotton warp yards.. 

Sheetings, bleached, 10-4, Wamsutta S. T yards.. 

Sheetings, brown, 4-4, Indian Hem'. yards.. 

Shirtings, bleached, 4-4, Lonsdale yards.. 

Suitings, indigo blue, all wool, 14 oz., Middlesex yards- 
Tickings, Amoskeag, A. C. A yards.. 

Women's dress goods, cashmere, cotton warp, Atlantic F__ yards.. 

Coal, anthracite, stove bushels.. 

Petroleum, refined, 150° test gallons.. 

Nails, cut, 8-penny, fence and common pounds.. 

Nails, wile, 8-penny,, fence and common pounds.. 

Carbonate of lead (white lead), American, in oil pounds.. 

Cement, Portland, American barrels- 
Quinine, American ounces.. 

Glassware, tumblers, V 3 pint, common... 



27.0 


81.2 


73.5 


114.9 


12.9 


23.2 


a 


b 


c 


d 


63.4 


8S.7 


33.7 


38.7 


58.1 


64.8 


70.6 


81.2 


51.0 


77.0 


7.6 


10.9 


11.4 


17.5 


53.5 


61.0 


48.6 


52.1 


2.9 


3.1 


32.7 


38.9 


26.2 


23.9 


21.6 


31.0 


32.1 


39.7 


123.0 


217.0 


114.0 


252.0 


64.4 


76.6 


1.7 


3.2 


13.8 


30.1 


222.0 


42V. 



a 1 pair and 93 cents over, 
c 3 pairs and 78 cents over. 



b 1 pair and $2.54 over, 
d 5 pairs and 31 cents over. 



When the co7nparative value of silver is shown the deerease 
is remarkable. The value in 1907 is less than in 1800 when meas- 
ured by IS of the 25 articles. In 1896 the value of 10 ounces of 
silver was equal to 150.5 pounds of grannla.ted sugar, in 1907 it 
v ;i ; equal to hut 1-11.9 pounds; in 1896 equal to 114.5 
yards of ging*hanu in 1907 to 100.3 yards; in 1896 equal to 10'.). •? 
;, a.r.ds of Indian Head sheetings, in 1907 to 79.0 yards; in 1890 
•i! to "()..". bushels of slo\e coal (anthracite), in 1907 no but 
.:> bushels. The table follows: 



188 



PRICES OF FARM PRODUCTS. 



Yalue of 10 ounces of silver (fine bar) in 1896 and 1907 when 
measured by the wholesale prices of the following staple 
a?'ticles. 

[Compiled from Bulletin No. 75, United States Bureau of Labor.] 



Articles. 



1907. 



Coffee, Rio, No. 7_ pounds. 

Sugar, granulated pounds. 

Tea . Formosa, fine pounds- 
Shoes, men's calf bal., Goodyear welt pairs. 

Shoes, women's solid grain pairs. 

Calico , Cocheco prints yards. 

Denims, Amoskeag yards. 

Drillings, brown, Pepperell yards. 

Gringhams, Amoskeag yards- 
Hosiery, woiwq's cotton hose, 26 to 28 oz pairs. 

Overcoatings, chinchilla, cotton warp yards. 

Sheetings, bleached, 10-4, Wamsutta S. T yards. 

Sheetings, brown, 4-4, Indian Head yards. 

Shirtings, bleached, 4-4, Lonsdale yards. 

Suitings, indigo blue, all wool, 14 oz., Middlesex yards- 
Tickings, Amoskeag, A. C. A yards. 

Women's dress goods, cashmere, cotton warp, Atlantic F_.yards. 

Coal, anthracite, stove bushels. 

Petroleum, refined, 150° test gallons. 

Nails, cut, 8-penny, fence and common pounds. 

Nails, wire, 8-penny, fence and common pounds. 

Carbonate of lead (white lead), American, in oil pounds. 

Cement, Portland, American... barrels. 

Quinine, American ounces- 

Glassware, tumblers, % Dint, common 



55.3 


100.3 


150.") 


141. y 


26.4 


28.7 


a 


b 


c 


d 


129.9 


109.6 


69.0 


47.8 


119.0 


80.0 


144.5 


100.3 


104.0 


95.0 


15.7 


13.4 


23.3 


21.6 


109.6 


79.0 


99.6 


64.4 


6.0 


3.9 


66.9 


48.1 


53.7 


29.5 


50.2 


38.3 


65.6 


49.0 


251.0 


305.0 


233.0 


312.0 


131.9 


94.7 


3.4 


4.0 


28.3 


37.2 


455.0 


528.0 



a 2 pairs and $2.02 over. 
c 8 pairs and 2 cents over. 



b 2 pairs and 99 cents over, 
d 6 pairs and 56 cents over. 



Increase in. Value of Farm Lands. 

The Government census figures covering the periods of 1900 
and 1905 show that medium farm lands in the United States are 
valued at $22,745,420,567, compared with $16,614,647,491 in 1900, a 
gain of 32 per cent in five years. The average value per acre in 
1905 was $29.28, compared with $20.50 in 1900. 

American Anthracite Sold Cheaper in Canada than in the 
United States — yet there is no Tariff on Anthracite. 

[From the Trenton Gazette.] 

They wail over the fact that the steel people, the watchmakers, 
sewing machine manufacturers, implement builders and so on 
sell their products cheaper in Europe than they do in their home 
markets, paying the ocean freight. This fact arises more from 
competition, from a desire to enlarge their field of trade, and 
more to the tricks of trade than to the tariff. 

For proof of this, proof that can't be set aside, here is the fact 
that American anthracite coal was sold cheaper in Montreal, 
Canada, than it was to the American consumer. There is no duty 
either way on coal. Coal is an unprotected article. 

Wealth of United Kingdom and United States. 

The New York Herald in 1907 published a despatch from Lon- 
flon announcing that two well known statisticians, Dr. W. J. Har- 
ris and Eev. K. A. Like, had by a careful calculation estimated 
IIk- wealth of the United Kingdom at $46,000,000,000, or $1,035 
per capita. The United States Census Office estimated the wealth 
of the United States in 1905 at $107,000,000,000, or $1,310 per 
capita. 



As a party shows itself homogeneous, able to grasp the 
truth with respect to new issues, able to discard unimportant 
differences of opinion, sensitive with respect to the suc- 
cessful maintenance of government, and highly charged 
with the responsibility of its obligation to the people at 
large, it establishes its claim to the confidence of the public 
immI to its continuance In political power. — Hon. Wm. H. Taft. 
ui Kansas City, Mo. 



AGRICULTURAL PROSPERITY. 189 

VALIE OF THE FACTORY TO THE FARMER. 

Practical and Statistical Evidence that Manufacturing Es- 
tablishments Increase tlie Earnings of Farmers in the 
Section Where Located and Advance the Permanent Value 
of Farm Properties.— A Comparison of Conditions in the 
Manufacturing and Nonmanufactnring Sections, Based 
Upon Official Figures. 

The table here presented illustrates by figures taken from 
official reports the value to the farmer of the location of maim- 
fecturing industries in his immediate vicinity. That the exist- 
ence of a great manufacturing industry in the country — an indus- 
try which employs 5 million people and pays wages and salaries 
amounting to 2y' 2 billions of dollars per annum— is of great 
value to the farming interests goes without saying-, but that the 
location of the factory in the immediate vicinity of the farm 
adds to the value of that farm and to the earnings of those 
who own or occupy it is also true. 

Mr. McKinley remarked in the House of Representatives in 
the discussions of the Fiftieth Congress that " the establishment 
of a furnace or factory or mill in any neighborhood has the 
effect at once to enhance the value of all property and ail values 
for miles surrounding it;'' and Thomas B. Heed, of Maine, in- 
quired. "Which is it better for the farmer to do — send his sur- 
plus a thousand miles to the seacoast. 3.000 miles across the 
water and sell it to the mechanic who gets less wages, or sell 
it right here at home to the mechanic who gets more wages?" 
"Every farmer knows," said Representative Brewer, of Michigan, 
in the Fiftieth Congress, "that he cannot send to foreigners his 
potatoes, vegetables, and many other things which he grows 
upon the farm and that he must rely upon the home market for 
the same, and this is why the lands in rough and rocky New 
England and sterile New Jersey are more valuable than are 
fertile lands in Michigan and Minnesota." 

"The extraordinary effect," said President Grant, in a mes- 
sage to Congress, "produced in our country by a resort to di- 
versified occupations has built a market for the products of 
fertile lands destined for the seaboard and the markets of the 
world. The American system of locating various and extensive 
manufactories next to the plow and the pasture and adding 
connecting railroads and steamboats has produced in our dis- 
tant interior country a result noticeable by the intelligent 
portions of all commercial nations." 

The table which follows, made up from official figures, is in- 
tended to illustrate, in some degree, the effect upon the farm 
and its occupant of the proximity of manufacturing industries. 
In preparing this table that part of the United States lying 
north of the Potomac and Ohio rivers and east of the Missis- 
sippi has been taken as the chief manufacturing section of 
the country, and the value of the farm lands and farm products 
in that section is contrasted with that in the other part of 
the United States, which has comparatively little manufactur- 
ing and may be termed the agricultural but non-manufacturing 
section. The portion of the United States designated as the 
manufacturing section in this table and discussion, then, in- 
cludes all of the New England and Middle Stales and Mary- 
land. District of Columbia. Ohio, Indiana, Illinois. Wisconsin, 
and Michigan. This manufacturing section contains, speak- 
ing in round terms, one-half (50.9 per cent) erf the population 
of the United States, while the agrieult ural, but non-mann- 
facturing section, lying south of the Potomac and Ohio rivers 
and west of the Mississippi contains the other half (49.1 
per cent.) of the population. In the section north of the 
Potomac and Ohio rivers and east of the Mississippi is pro- 
duced 77 per cent of the manufactures of the country, and in 
the other section 23 per cent, as shown by the reports of the 
census of 1900. The section designated as tin- manufacturing 
section has no advantage in soil or climate over large portions 
of the other section. 

More than one-half of the wheat, two-thirds of the com. all 
of the cotton, and by far the Largest share of the meat and 



190 AGRICULTURAL PROSPERITY. 

wool supply of the United States are produced in the agricul- 
tural and non-manufacturing- section, while more than three- 
fourths of the manufactures are produced in the manufactur- 
ing- section, the population in the two sections being practic- 
ally equal. 

This division of the territory of the United States into these 
two great sections — each containing one-half of the population, 
the one performing approximately three-quarters of the manu- 
facturing of the United States and the other approximately 
three-fourths of the agricultural industry of the country — 
gives an opportunity for a broad, intelligent and absolutely 
fair study of the effect of the proximity of the factory upon the 
farmer as relates to the value of his property and its annual 
production and of his own earning power as an individual. It 
will be seen by a study of the table that the average value 
per acre of all farm lands in the manufacturing section in 
3 900 was, according to the census, $24 per acre, and in the non- 
manufacturing section, $12 per acre; and the average value of 
lands and buildings in the manufacturing section,. $32 per 
acre, and in the nonrmanufacturing section, less than $15 per 
acre; while the value per acre of improved land only, including 
buildings, was. in the manufacturing section, $58 per acre, 
and in the other section but $31. The average value of build- 
ings, which represent in some degree the savings of the farmer, 
was, in the manufacturing section, $15 per improved acre, and 
in the non-manufacturing section $5.50 per improved acre, 
while of implements used upon the farms the value per im- 
proved acre in the manufacturing section was nearly twice as 
great as in the non-manufacturing section. Coming to the 
value of farm products, the average value per improved acre 
in the manufacturing section was $141, and in the non-manufac- 
turing section $101. The average value per head of milch 
cows in the manufacturing section was $33, and in the other 
section $27. The average value per head of horses in the manu- 
facturing section was $60, and in the non-manufacturing sec- 
tion $43, and the average value of farm products per person 
engaged was, in the manufacturing section, $619, an4 in the 
non-manufacturing section $394. 

Thus in all of these evidences of prosperity, earnings, value 
of property, etc., the condition of the farmer in the manu- 
facturing section was, according to the figures of the last 
census, much higher than that in the non-manufacturing sec- 
tion, despfte the fact that the non-manufacturing section has 
soil, climate, lands, and producing power quite as favorable 
and in many cases more favorable than those of the manu- 
facturing section. In the great and final measure of relative 
prosperity of the farmer in the two sections, as indicated by 
the item "Average value of farm products per person engaged," 
the earnings of the farmer in the manufacturing section are 
57 per cent, greater than those in the non-manufacturing sec- 
tion whose soil, climate, etc., and prducing capacity certainly 
equal, if they do not surpass as a whole, those of the manu- 
facturing section as a whole. 

Another measure of the relative prosperity of the people of 
the two sections is found in the deposits in savings banks, in 
which the per capita in the manufacturing section is $57, and 
in the non-manufacturing section loss than $7, while of deposits 
in all banks the per capita in the manufacturing section is 
$153 and in the other section $37. The assessed value of real 
and personal property, that measure of accumulations and per- 
manent prosperity is, in the manufacturing section, $606 per 
capita and in the non-manufacturing section $278 per capita, 
while in other evidences of prosperity, such as salaries paid 
to teachers in public schools, newspapers circulated, etc., the 
per capita is also greatly in favor of the manufacturing sec- 
tion. 

This table is compiled in every particular from official sta- 
tistics, chiefly those of the census of 1900, though in a few in- 
stances those of the Department of Agriculture, where the lat- 
ter could be utilized to obtain data for a later year than the 
census. 



AGRI CULTURAL PROSPERITY— WOOL. 



191 



Attention is called to the map of the United States on the 
cover of this volume, which indicates the two sections here dis- 
cussed and some of the countries presented. 

Relative conditions of prosperity in the manufacturing and non- 
manufacturing sections of the United states, respectively * 

[From Census of 1900.] 



Mtt, ESSr ,,g Other SUM* 



Per cent of total population of United States.. 

Per cent of total area of United Scates 

Gross value of manufactures in 1900 

Per cent of total manufactures produced in 

section 

Salaries and wages paid in manufactures in 1900. 
Number of persons employed in manufactures 

in 1900 

Average value per acre of all farm lands 

Average value per acre of all lands and build 



ings 



Average value per acre of land (improved 

only) and buildings 

Average value of buildings per improved acre_. 
Average value of implements owned per im- 
proved acre 

Average value per head of milch cows 

Average value per head of horses 

Average value of all farm products, per im- 
proved acre 

Average value of farm products, per person 

engaged 

Deposits in savings banks, total 

Deposits in savings banks, per capita 

Deposits in all banks, total 

Deposits in all banks, per capita 

Bank clearings, total 

Bank clearings, average per capita 

Banking resources, total 

Banking resources, average per capita 

Real and personal property, assessed valuation- 
Real and personal property, per capita 

Salaries paid teachers in public schools 

Newspapers published, number 

Newspapers, aggregate circulation 



50.9 

14.1 

S10, 021,718,101 



$2, 191, 936, 683 

4,437,711 
§24.07 

$32.50 

$58.60 
$15.25 

$2.54 
$33.62 
$60.87 

Sill. 00 

$619.25 

82, 200,439.838 

S56.90 

85,949,984,845 

$153.80 

876,356,970,422 

81,973.50 

$8,613,200,000 

|222.65 

823,445,809,898 

$606.25 

885,234,961 

9,151 

6,168,125.616 



49.1 
85.9 

i $2,988,318,033 

23 

$536,471,656 

1,273,917 

$12.78 

$14.85 

$31.65 
$5.51 

$1.47 
827.16 
$43.32 

$101.40 

8394.50 

$249,108,047 

$6.67 

81.354,666,395 

$37.10 

8 -.225. 479. 659 

$220.40 

$2,167,500,000 

$58.10 

-. ,388,667,238 

$278.59 

$52,452,785 

9,075 

2,000,023.133 



Manufacturing section includes area north of the Potomac and Ohio and 
east of the Mississippi, viz., the New England and Middle States, and Mary- 
land, District of Columbia, Ohio, Indiana, Illinois, Michigan, and Wisconsin. 



SHEEP AND WOOL INDUSTRY. 

Some Figures on the Losses under Free Trade in Wool. 

The losses to the sheep and wool producers of the country 
through the Wilson-Gorman tariff law, which placed wool on the 
free list, are well remembered in general terms, but the actual 
figures regarding the fall in the value of sheep and the reduc- 
tion in the number of sheep and the wool produced are such as 
to justify presentation. The figures of the Department of Agri- 
culture show that the number of sheep in the United States on 
January 1. 1893, two months after the election of President 
Cleveland, was 47,273,553, and their value $125,909,254. The same 
authority, the Department of Agriculture, operating under a 
Democratic Administration, showed on Jan. 1, 1896, the closing 
year of President Cleveland's term; 36,818,643 sheep in the United 
States and their value $07 0.942. Here is a decrease of more 
than 10 millions or nearly 25 per cent, in the number of sheep 
and a decrease of 58 million dollars, or nearly 50 per cent, in 
their value during- President Cleveland's term, under which 
wool was placed on the free list. By January 1. 1903. the mini 
ber of sheep had reached 63,964,876, and the value $168,315,750, 
an increase of practically 75 per cent, in the number, and 150 
per cent, in the value of the sheep in the country. This, how- 
ever, is not all of the loss to the farmer — a loss of nearly 60 
million dollars in the value of sheep alone. There was also 
a great loss in wool. The quantity of wool produced in 1893 



192 AGRICULTURAL PROSPERITY—WOOL. 

was 303 million pounds and by 1895 had fallen to 209 million 
pounds and did not again reach the 300 million line until 1901, 
when it was 302 millions and in 1902, 316 millions. Here was 
a reduction of practically one-third in the quantity of wool 
produced in 1S95 as compared with 1893. But even this does 
not measure the loss, since the value per pound of the reduced 
production was far below that of prior years. Wool price 
quotations published by the Bureau of Statistics show that 
grades of wool which sold at 35 cents per pound in 1891 had 
fallen to 19 cents per pound in 1896 and by 1901 were again 
above the price of 30 cents per pound. A careful estimate of the 
value of the wool product of the United States made by an 
eminent authority on the subject puts the total value of the 
wool product of the country in 1892 at 79 million dollars, and 
in 1896 at 32^ millions, a loss of 46*^> millions. Adding this 
loss in wool to the 5S million dollars loss in value of sheep, 
above quoted, gives a g*rand total of the loss to the farmer 
in the value of sheep and wool of over 100 million dollars for 
a single year for which this calculation is made, or approxi- 
mately 4(H) million dollars for the four years of the Cleveland 
Administration, in 1907 the value of wool was estimated by 
experts at $78,000,000, or two and one-half times that of 1896. 

Effect V>f Protection and Free Trade in Regard to Sheep. 

The official reports of the United States Government upon 
the subject of sheep raising and sheep values teach a wonder- 
ful lesson. 

From 1878 to 1882, inclusive, the Morrill tariff (protection) 
was in force, and the number of sheep throughout the country 
increased by over 11,000,000 during this period. 

The tariff of 1883 was in force from 1883 to 1889, inclusive, 
The duties imposed by this tariff upon raw wool amounted 
to no more than a revenue tariff on yarns and some other 
goods produced from wool; consequently the result of this 
tariff as a whole was not protective. Under its operation the 
number of sheep throughout the United States decreased by 
about f:,000,000. 

The McKinley tariff, passed in 1890, was a scientific tariff as 
applied to woo] growing', with the result that the number of 
sheep throughout the country increased by nearly 4,000.1)00 
before the free-trade election of 1892. 

The Wilson tariff, with free trade in wool, practically went 
into effect when Mr. Cleveland was elected, and immediately 
the flocks throughout the country began to decrease, and from 
1893 to 1896 decreased by about 9,000,000. 

The Dingley tariff reimposed the scientific schedules of the 
McKinley tariff, and with the promise of protection through the 
election of William McKinley and a Republican Congress the 
sht -ep-raisi ug Industry immediately began to prosper. From 
1896 to and including 1907 the number of sheep increased by 
17 million and their value increased 144 million dollars. 

The effect of protection and free trade in regard to the num- 
ber of sheep owned throughout the country is not more im- 
pressive than the effect as to value. Under the Morrill tariff 
r he lowest price per head was $2.09 and the highest $2.55. 
rude- the tariff of 1883 the lowest price per head was $1.91 
and the highest price was $2.27. Under the McKinley tariff 
the lowest, price was $2.49 and the highest price $2.66. Under 
tree 1 1 ade the lowest price was $1.58 p.nd the higiiest price 
$1.92. Under the Dingley tariff the lowest price was $2.59 
per head, and now the value has advanced to $3.95 per head, 
the highest average price in the history of the nation. 



Well-paid warge-earners are generous consumers.— For- 
mer Senator Casey, in the American Economist. 

When -\ve regard tlie history of the forty years through 
which tli<* colored man of this country has been obliged 
to struggle, the progress which he has made, material and 
educational, is wonderful. — Hon. Wm H Taft, at Kansas Cit>, 
Ho. 



AGRICULTURAL PROSPERITY— WOOL. 



193 



Report of the United States Government on sheep raising from 
1818 to 1898, inclusive, and report for 1900, based upon the 
sheep-raising census of the American Protective Tariff 
League. 



Year. 



The Morrill tariff: 

1878 

1879 

1880 

.1881 

1882 

The tariff of 1883: 

1883 

1884 

1885 



1887. 
1888- 



The McKinley tariff: 
1890 



1892 

The Wilson tariff, free trade in wool. 
1893 



1895 

1896 

The Dingley tariff: 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 _•__. 



Number 


Average 


Total 


of sheep. 


per head. 


value. 


38,123,800 


$2.09 


$79,023,984 


40,765,900 


2;.21 


90,230,537 


43,576,899 


2.39 


10 ,,070/75* 


45,016,224 


2.37 


106,594,954 


49,237,291 


2.52 


124,365,835 


50,626,626 


1.37 


119,902,706 


50,360,243 


2.14 


107,960,650 


48,322,331 


1.91 


92,443,867 


44,759,314 


2.01 


89,872,839 


43,544,755 


2.05 


89,279,926 


42,599,079 


2.13 


90,640,36 1 


44,336,072 


2.27 


100,659,761 


43,431,136 


2.49 


108,397,447 


44,938,365 


2.58 


116,121,290 


47,273,553 


2.66 


125,909,264 


45,048,017 


1.98 


89,186,110 


42,294,064 


1.5S 


66,6S5,767 


38,298,783 


1.70 


65,167,735 


36,S18,643 


1.82 


67,020,942 


37,656,960 


2.46 


92,721,133 


39,114,453 


2.75 


107,697,530 


41,883,065 


2.93 


122.665,913 


59,756,718 


2.98 


178,072,176 


62,039,091 


2.65 


164.446, 091 


63,964,876 


2.64 


168,315,750 


51,(130,144 


2.59 


133,530,019 


45.170,423 


2.82 


127,331.850 


50,631,619 


3.5t 


179,055,141 


53,240,282 


3.83 


201,210,129 


53.631.000 


3.88 


211,73-, 00) 



Wool Production, Imports, Consumption, Manufacture, Price 
of Wool, and Value of Sheep on Farms, 1875 to 1907. 

This table, showing- the home production and imports of wool, 
the percentage which foreign wool forms of the total consump- 
tion, the price of wool in the United States, and the number 
and value of sheep on farms, covers the period from 1875 to 1907, 
and enables a comparison of conditions under the protective 
system with. those uncle)* free trade, since wool wa,s admitted 
free of duty under the Wilson Act, which went into effect August 
27. 1894. and continued in operation until .Inly 24, 1S97. ft will 
be seen that the quantity of wool imported increased enormously 
during- that time, that the* price of domestic wool fell to about 
one-half of that of former years, that the number of sheep on 
farms was materially reduce:! and their price per head also great- 
ly reduced, so that the value of sheep on farms fell from L25 
million dollars shortly before the enactment of that law to 65 
millions in the latter part of its operation. 



The course of the Republican party since its organization 
in 1856, and its real assumption of control In 1861, down 
to the present day, is remarkable for the foresight and 
ability of its leaders, for the discipline and solidarity of 
its members, for its efficiency, and deep sense o) respon- 
sibility for the preservation and successful maintenance of 
the government, and for the greatest resourcefulness In 
meeting the various trying anil difficult issues which a 
history of now a full half-century have presented for so- 
lution.— Hon. Wm. H. Taft, at Kansas City, Mo. 

Government must be honest, business dealing must he 
square with the principles of rijAht ami justice, the things 
that are pure and clean ami of good repute must be exalted? 
and underlying the whole fat-ic of our institutions .vr- 
mnst safeguard our schools and !»«<-» pure and undented, as 
the very foundation of our liberties, the Imerioan home. — 
Postmaster-General Cortelyou on Lincoln's Influence on 
American Life. 



194 



AGRICULTURAL PROSPERITY— BEET SUGAR. 



Wool production, imports, consumption, and manufacture in the 
United States; also price of wool and value of sheep on farms, 
1875 to 1907. 

[From the Statistical Abstract of the United States, 1907.] 






1875.. 
1876,. 

1877- 
1878- 
1879- 
1880- 
1881- 
18S2- 
1883- 
1884.. 
1885- 
1886- 



1890.. 
1891- 
1892.. 
1893.. 
1894§. 
18958. 
1896§. 
1897§. 
1898- 
1899.. 
1900.. 
1901- 
1902- 
1903- 
1901_ . 
1905.. 
1906.. 
1907- 



Produc- 
tion. 



Pounds. 
181,000,000 
192,000,000 
200,000,000 
208,250,000 
211,000,000 
232,500,000 
210,000,000 
272,000,000 
290,000,000 
300,000,090 
308,000,000 
302,000,000 
285,000,000 
269,000,000 
265,000,900 
276,000,000 
285,000,090 
294,000,000 
303,153,000 
298,057,381 
309,748,000 
272,474,708 
259,153,251 
266,720,684 
272,191,330 
288,636,621 
302,:102,328 
316,341,032 
287,450,000 
291,783,032 
295,188,438 
298,915,130 
298,294,750 



Imports. 



Value of 

imports of wool, 

and manufac 

tures of. 



Wool, 
raw. 



Manu- 
factures 
or wool. 



Pounds. 

51,901,760 

44,642,836 

42,171,192 

48,449,079 

39,005,155 

128,131,747 

55,964,236 

67,861,744 

70,575,478 

78,350,651 

70,593,170 

129,084,958 

114,038,030 

113,558,753 

126,487,729 

105,431,285 

129,303,648 

148,670,652 

172,433,838 

55,152,585 

206,033,906 

230,911,473 

350,852,026 

132,795,202 

76, 736-, 209 

155,928,455 

103,583,505 

166,576,966 

177,137,796 

173,742,834 

249,135,746 

201,688,668 

203,847,545 



Wis* 
c *> 

'■a a 

v 0> 3 



Dollars. | Dollars. 
11, 071, 259 j 44, 60 J, 704 
8,247,617 , 33,209,800! 
7,156,944125,701,922 
8,363,015 25,230,154 
5,031,545|24,355,821 



33,911,093 
31,156,426 
37,361,520 
44,274,952 
41,151,588 
35,776,559 
41,421,319 
44,902,718 
47,719,393 
52,564,942 
56,582,432 
18, 231. 372 | 41, 060, 080 



23,727,650 
9,703,968 
11,096,050 
10,949,331 
12,384,709 
8,879,923 
16,746,081 
16,424,479 
15,887,217 
17,974,515 
15,264,083 



19,688,108 
21,064,180 

6,107,438 
25,556,421 
32,451,242 
53,243,191 
16,783,692 

8,322,897 
20,260,936 
12,529,881 
17,711,788 
22,152,961 
24,813,591 
46,225,558 



35,565,879 
38,048,515 
19,439,372 
38,539,890 
53,491,400 
49,162,992 
14,823,771 
13,832,621 
16,164,446 
14,585,306 
17,384,463 
19,546,385 
17,733,788 
17,893,663 



39,068,372:23,080,683: 
41,534,028 22,321,460 



Cents. 
52 
38 
50 
36 
37 
46 
42 
42 
39 
35 
32 
33 
34 
29 
35 
33 
31 
28 
24 
20 
18 
17 

21% 

28 

29 

28% 

25 

26 

31% 

32% 

36 

33 

34 



Sheep on farms 

in the United 

States. 



Num- 
ber. 



33,783 
35,935 
35,804 
35,740 
38,123 
40,765 
43,569 
45,016 
49,237 
50,626 
50,380 
4S,322 
44,759 
44,544 
42,599 
44,336 
43,421 
44,938 
47,273 
45,048 
42,294 
38,298 
36,818 
37,656 
39,114 
41,883 
59,756 
62,039 
63,964 
51,630 
45,170 
50,631 
53,240 



,600 
,300 
,200 
,500 
,800 
,900 
,899 
,224 
,291 
,626 
,243 
,331 
,314 
,755 
,079 
,072 
,136 
.365 
,553 
,017 

,064 

,783 
,613 
,960 
,453 
,065 



Value. 



Dollars. 
94,320,652 
93,666,318 
80,892,683 
80,603,062 
79,023,984 
90,230,537 
104,070,759 
108,595,951 
124,366,335 
119,902,706 
107,960,650 
92,443,867 
89,872,839 
89,279,926 
90,640,369 
100,659,761 
108,397,440 
116,121,290 
125,909,260 
89,186,110 
66,685,767 
65,167,735 
67,020,942 
92,721,133 
107,697,530 
122,665,913 
7181178,072,476 
091 164,446,091 
876 168,315,750 
144 133,530,099 
4231127,331,850 
619,179,056,141 
282 204,210,129 



Democratic and low tariff years. 



BEET SUGAR. 

The fact that about a hundred million dollars' worth of sugar 
is brought from foreign countries each year to meet the demands 
of the people of the United States, coupled with the belief that the 
production of this great sugar supply by our farmers is possible, 
renders proper a careful consideration of the effect of the recent 
legislation by which sugar from Porto Rico and the Hawaiian 
Islands is admitted free of duty, that from the Philippines at 
25 per cent, below, and that from Cuba at 20 per cent, below the 
regular tariff rates. Will the absolute removal of all duty on 
sugar from Porto Rico and the Hawaiian Islands and the reduc- 
tion of 25 per cent, on sugar from the Philippines and 20 per 
cent, on that from Cuba destroy the beet-sugar industry of the 
United States or work to its disadvantage? While it is a fact that 
the annexation of Hawaii and its organization as a Territory 
and customs district of the United States removed permanently 
all tariff on merchandise from those islands or passing into them 
from the United States, that fact made no change in the rates 
of duty on sugar from the islands, its only effect being to render 
absolutely permanent the conditions which had existed ever 
since the treaty of 1876, by which sugar from the Hawaiian 
tslands was admitted free on agreements that products of the 
United States should be admitted into the Hawaiian Islands free 
of duty, and that condition continued down to the annexation of 
Hawaii, when it was made permanent, as above indicated. In the 
case of Porto Pico all of the dut} r except 15 per cent, was removed 
by the act establishing the government of Porto Rico, and the 
remainder of that duty disappeared as soon as the Porto Rican 



AGRICULTURAL PROSPERITY— BEET SUGAR. 195 

government announced its ability to provide its own revenues. 
The reduction of 25 per cent, in the rates -of duty on merchan- 
dise from the Philippine Islands occurred on March 8, 1902. 

Effect on the Home Producer. 

All of these removals of duty on sugar from our own posses- 
sions have been in force a sufficient length of time to give oppor- 
tunity to test their effect \ipon domestic sugar production. The 
quantity of sugar imported from Porto Pico increased from 
86,607,317 pounds in the fiscal year 1897 to 408,149,992 pounds 
in the fiscal 3-ear 1907. The sugar imports from the Hawaiian 
Islands have increased from 431,196,980 pounds in 1897 to 822,- 
014,811 pounds in the fiscal year 1907; and those from the 
Philippine Islands decreased from 72,463,577 pounds in the fiscal 
year 1897 to 25,164,756 pounds in the fiscal year 1907 — the re- 
duction in imports of sugar being, of course, due to the de- 
struction of plantations and machinery during the war. Thus 
the quantity of sugar imported from Porto Eico, Hawaii, and the 
Philippine Islands in 1907 was practically double that of 1897. 
The entire quantity of sugar brought into the United States in 
the fiscal year 1907 amounted to 5,224,259,732 pounds. Of this 
total importation, 1,230,164,803 pounds came from Porto Eico 
and the Hawaiian Islands, and was absolutely free of duty, and 
this formed 23.5 per cent., or practically one-fourth of the total ; 
while that from the Philippine Islands, which amounted to 
25.164,756 pounds, came in with a reduction of 25 per cent, of 
the regular duty and formed about y 2 of 1 per cent, of the total. 
Thus practically one-fourth of the sugar coming into the United 
States in 1907 was admitted absolutely free of duty from the 
Hawaiian Islands and Porto Eico. In 1897 the amount which 
came in free of duty from the Hawaiian Islands was 431.196,980 
pounds, and this formed 8.9 per cent, of the total sugar impor- 
tation of that year. 

Increase of Beet Sugar Production since the Annexation of 
Hawaii and Porto Rico. 

Here, then, is a fair basis upon which to determine the effect 
of the importation of sugar from our own possessions free of 
duty. In 1897 practically 9 per cent, of the sugar imported 
came in free of duty. In 1907 practically 25 per cent, came in 
free of duty. If such free importation were likely to affect 
disadvantageously beet sugar production at home, an increase 
from 9 per cent, to 25 per cent in the importations of free 
sugar would doubtless have made itself apparent by a reduction 
in the sugar production of the United States. But let us see 
what the beet sugar production of the country was in the two 
years in question — 1897. when 9 per cent, of the sugar was im- 
ported free, and 1907, when 25 per cent, was imported free. The 
reports of the Department of Agriculture and Bureau of Sta- 
tistics show that the beet sugar produced in the United States 
amounted in 1897 to 88. 892,160 pounds. By 1899 it had in- 
creased to 141,230,160 pounds; by 1901 to 279,682,160 pounds; 
and in 1906 was 967,224,000 pounds. Here, then, is an increase of 
98S per cent, in the beet sugar production of the United States 
during the very period in which free importation of sugar 
from Porto Eico was established and that from Hawaii made 
absolutely permanent by annexation and its establishment as 
a eustoms district of the United States, in which period the 
quantity of sugar imported free of duty increased 1S5 per 
cent. If an increase of 185 per cent, in the quantity of su<rar 
imported free of duty, coupled with absolute assurance that 
the sugar fields of Porto Eico and Hawaii are to have per- 
manently free access to the markets of the United States, was 
accompanied by an increase of 988 per cent, in the production 
of beet sugar at home, there seems little ground for any anxiety 
as to the effect of free sugar importation from our own terri- 
tory in depressing beel sugar production at home. 

Tallies published on another page show the importation of 
sugar into the United States, the home production of various 
kinds of sugar, and the total home consumption for a term of 



196 



AGRWULTURA L PROSPERITY— BEET SUGAR. 



years; also the quantity brought into the United States from 
Porto Eico and Hawaii respectively, from 1895 to 1903 ; also 
the total product of beet and cane sugar, respectively, in the 
world during- a long term of j^ears. 

Production of cane and beet sugar in the principal producing 
countries of the world for the sugar near 1907-8.* 



Countries. 


Caue sugar 
production. 
Gross tons. 


Countries. 


Beet sugar 
produc- 
tion. 
Gross tons 




1,156,477 
1,000,000 
420,000 
185,000 
145,000 
214,500 
335,000 
3,498,900 




<8,132 000 






1,460 000 






725,000 
4,410,000 










235,000 
175,000 
435,000 












Total 




6,893,000 


Total 


6,954,877 









* Figures for cane sugar production taken from Willett and Gray's Sugar 
Trade Journal, March 19, 1908; figures for beet sugar production taken from 
fy O. Licht's estimate in the same journal, February 6, 1908. 

World's supply of beet and cane sugar, from 18JfO to 1907. 
[Compiled from London Statist, Census Bulletin, and Willett & Gray.] 



Years. 



1840 

1850 

1860 

1870 

1871-72 

1872-73 

1873-74 

1874-75 

1875-76 

1876-77 

1877-78 

1878-79 

1879-80 

1880-81 

1881-82 

1882-83 

1883-84 

1884-85 

1885-86 

1886-87 

1888-89 

1887-88 

1889-90 

1890-91 

1891-92 

1892-93 

1893-94 

1894^95 

1895-96 

1896-97 _._j 

1897-98 

1898-99 

1899 1900 

1900-1901 

1901-2 

1902-3 

1003 1 

1905 

1906 

1907 _._ 



Beet sugar 

(tous). 



50,000 
200,000 
389.000 
831,000 
859,479 
124,343 
145,849 
165,336 
350,921 
083,739 
398,373 
549,276 
430,952 
746.501 
831,584 
113,070 
323,548 
508,608 
185,490 
707 , 5 13 
713,679 
4^2,981 
578,409 
655,709 
451,936 
386,423 
848,241 
736,883 
246,924 
876,422 
795,813 
935,837 
503,815 
972,274 
816/644 
659 i 886 
089,168 
918, ISO 
216,060 
1 13-.818 



(a) 

Cane sugar 

(tons;. 



1,100,000 
1,200,000 
1,510,000 
1,585,000 
1,791,184 
1,840,986 
1,711,763 
1,756,681 
1,692,828 
1,682,531 
1,715,900 
1,965,990 
1,903,316 
1,902,346 
2,016,084 
2,1()!,072 
2,5 17, 531 
2,592,647 
2,702,850 
2,805,735 
2,4SO,700 
2,642,000 
2,475,800 
2,868,900 
3.231,561 
3,0' vise 
3,531,621 
3, 5 10. .670 
2,809, 177 
2,841,851* 
2,864,255 
2,995, 138 
3,056,294 
3,646,059 
4,078,941 
1,144, 153 
4,211,206 
1,594,782 
5,016 870 
5,1 18,950 



Total sugar 

(tons). 


Per cent 

supplied by 

Oeet. 


1,150,000 


4.4 


1,400,000 


14.3 


1,899,000 


20.1 


2,416,000 


34.4 


2,650,663 


32.4 


2,965,329 


37.9 


2,857,612 


40.1 


2,922,017 


39.9 


3,043,749 


44.4 


2,766,270 


39.2 


3,114,273 


44.9 


3,515,266 


44.1 


3.331,268 


12.9 


3,648,847 


47.9 


3,847,638 


47.6 


4,217,142 


50. 1. 


4,871,079 


47.7 


5,099,255 


49.2 


4,888,340 


44.7 


5,51>S',278 


49.1 


5,224,379 


52.5 


5, OS 1.98] 


48.0 


6,054,209 


59.1 


6,524,600 


56.0 


6,683,497 


51.7 


6,431,609 


52.7 


7,379,862 


52 . l 


8,247,553 


57.4 


7,056,401 


60.2 


7,718.279 


63 . 2 


7,660,068 


63.6 


7,931,275 


62.2 


8,560,109 


64.3 


9.61S.333 


62 . 1 


10.895,588 


62.6 


9.801 339 


57.7 


10,333,674 


58.9 


9,513,262 


51.7 


12,232,930 


5S.9 


12,292,768 


58.1 



a Exclusive of production of cane sugar in British India, averag'ng, for 
recent years, about 2,000,000 tons a year, and which is consumed locally. 



Sugar Imported, Produced and Consufned in tiio United 
States, and the Growth of the Sugar Production. 

This table shows the quantity of sugar imported from for- 
eign countries, the quantity brought from our own islands. the 
quantity of cane and of beet sugar, respectively, produced in the 
United States; the quantity exported and total quantity eon- 



AGRICULTURAL PROSPERITY— SUGAR. 197 

sumed, the consumption per capita, and the share of the con- 
sumption supplied by our own factories, including in this term 
only those of continental United States and not of Hawaii or 
the Philippine Islands. The separate statement of the quantity 
brought from Porto Rico and Hawaii begins with the year 
1901, prior to which time the sugar brought from those islands 
was included in the figures of sugar imported from foreign 
countries. 

An interesting feature of this table is the rapid growth in 
beet sugar production shown by the column which states the 
number of pounds of beet sugar produced in the United States. 
The production of beet sugar in the United Sates has grown 
from 163. million pounds in 1900 to 967 millions- in 1907, despite 
the fear entertained by some that the free admission of sugar 
from Hawaii and Porto Rico coupled with the reduction in rates 
of duty in that imported from Cuba and the Philippine Islands 
might seriously interfere with, if not actually destroy, that in- 
dustry in the United States. It will be noted that the production 
of beet sugar, which in 1901 was but one-fourth as much as that 
of cane, was in 1907 nearly twice as great as that of cane. 
The number of beet sugar factories has grown from 15 in 1900 
to 63 in 1907. The share of our sugar consumption supplied by 
production within continental United States which in 1900 was 
but 11.1 per cent, was in 1907 22.3 per cent, while about 20 
per cent of the consumption was supplied by sugar from Porto 
Rico and Hawaii. The production of sugar in Porto Rico 
has grown with great rapidity since the enactment of the 
law admitting the products of that island free of duty to 
the markets of the United States. The shipments of sugar 
from Porto Rico to the United States in the fiscal year 1901, 
the first year following that Act, amounted to but 137 mil- 
lion pounds, and in 1907 408 million pounds, and in the fiscal 
year 1908 will aggregate approximately 430 million pounds, or 
practically three times as much in 1907 as in 1901. The quan- 
tity shipped from Hawaii in 1900 was 691 million pounds, and 
in 1907, 822 millions, while for the fiscal year 1908 the total 
will approximate one billion pounds. Naturally the percentage 
of gain has been much larger in the case of Porto Rico than 
in that of Hawaii, since sugar from Hawaii was admitted free 
under the reciprocity agreement for many years prior to an- 
nexation, while that from Porto Rico paid, prior to annexation, 
the same rate of duty as that from other foreign countries. 
The actual growth in quantity imported from Porto Rico and 
Hawaii has been in each case about 300 million pounds, com- 
paring the figures of 1901 with the prospective figures of 1908. 

Speaking in very general terms, it may be said that the 
quantity of sugar annually consumed in the United States is 
-between 6 and 7 billion pounds, of which about one-fifth is 
produced in continental United States, another fifth in Porto 
Rico, Hawaii, and the Philippines and the remaining three-fifths 
brought from foreign countries; and of the 3.872 million pounds 
brought from foreign countries in the calendar year 1907, 3,032 
million pounds were from Cuba, 598 millions from the Dutch 
East Indies, 23 millions from Germany, and a little less than 
3 million pounds from Austria-Hungary; the sugar from European 
countries being- presumably beet. The quantity brought from 
the Philippine Islands in 1907 was 25 million pounds or a little 
more than one day's supply, the average daily consumption in 
the United States being now about 20 million pounds per day. 

With all this rapid growth in home production and importa- 
tion duty-free from Porto Rico and Hawaii, the quantity required 
from foreign countries has no! been diminished, but on the con- 
trary steadily increases. The imports of sugar from foreign 
countries in the fiscal \t\.r 1.907 were larger than in any year of 
our foreign commerce except L897, when excessivelj large quan- 
tities were rushed in in anticipation of am approaching change in 
tariff. 

With reference to Philippine sugar, it may be said that the 
importations from those islands have averaged 40 million pounds 

per an n during the lasl ten years, while the consumption of 

the United States row averages about 20 million pounds a day. 
so that the Philippines have since annexation furnished on an 



198 



AGRICULTURAL PROSPERITY. 



average about two days' supply per annum of our sugar require- 
ments and during the more recent part ,of that time Philippine 
sugar has been admitted at a reduction of 25 per cent of the 
regular rates of duty; or, in other words, has paid 75 per cent of 
the rates of duty paid on sugar from foreign countries. 

Imports of sugar into the United States from Porto Rico, the 
Haioaiian and Philippine Islands in each year from 1901 to 
1907 (in pounds). 



Fiscal year. 



1901- 
1902. 
1903- 
1904- 
1905. 
1906- 
1907- 



Porto Rico. 


Hawaii. 


137,201,828 


690,877,934 


183,817,049 


720,553,357 


226,143,508 


774,825,420 


259,231.607 


736,491,992 


271,319,993 


832.721,387 


410,544,618 


746,602,637 


408,149,992 


822,014,811 



Phili 


prri 


tie 


lsia 


ds 




4 


693 


333 


11 


12 i 


000 


18 


773 


333 


61 


570 


61 1 


69 


373 


r,'y2 


25,164 


75G 



We seek physical power because it may advance onr 
moral and intellectual well-being'. — Hon. C. W. Fairbanks, at 
Lancaster, Mass., Jane 30, 1903. 

We shall send onr flag into all ports of trade, not as a 
menace, but as the harbinger of peace and good-will.— Hon. 
C. W. Fairbanks, at Freehold, N. J., June 27, 1903. 

The policy of expansion is what distinguishes the admin- 
istration of McKinley and adds another to the list of patri- 
otic victories of the Republican party. By this policy the 
United States has become a '-world power. — Hon. Wni. H. 
Taft, at Kansas City, Mo. 

It is as much our imperative duty to protect capital and 
labor in the free and proper exercise of their functions as it 
is to restrain and forbid the encroachments of wrong.-Hon. 
C. W. Fairbanks, at St. Paul, Minn., August 31, 1903. 

The mints will not furnish the farmer with more con- 
sumers. The only market that he can rely upon every day 
of the year is the American market.— Maj. McKinley to In- 
diana delegation, at Canton, September 29, 1896. 

The dollar paid to the farmer, the wage-earner, and the 
pensioner must continue forever equal in purchasing and 
debt-paying power to the dollar paid to any Government 
creditor.— Maj. McKinley to Notification Committee, 1896. 

No amount of intelligence and no amount of energy will 
save a nation which is not honest, and no government can 
ever be a permanent success if administered in accordance 
with base ideals. — Theodore Roosevelt, in "American Ideal s." 

In this age of frequent interchange and mutual depend- 
ence, we can not shirk onr international responsibilities 
if we would; they must be met with courage and wisdom, 
and we must follow duty even if desire opposes.— President 
McKinley at Omaha, Oct. 12, 189S. 

No matter how capital combines or how labor combines 
or how they differ among themselves, their interests are in- 
separable and it ought to be plain to both that they can not 
afford to go out of business in favor of foreign labor ai-d 
foreign capital by abandoning the policy of protection.— 
Hon. E. L. Hamilton, in Congress, April 14, 1904. 

Only twice in all that remarkable history of 48 years 
have we lost the confidence of the people of the United 
States to the point of their turning over the government 
to a Democratic executive. I venture to say that neither 
in this nor in any other country can be disclosed such a 
remarkable record of arduous deeds done as in that history 
of a half a century of the Republican party. — Hon. Wm. H. 
Taft, at Kansas City, Mo. 

As a party shows itself homogeneous, able to grasp the 
truth -with respect to new issues, able to discard unimportant 
differences of opinion, sensitive with respect to the suc- 
cessful maintenance of government, and highly charged 
with the responsibility of its obligation to the people at 
large, it establishes its claim to the confidence of the public 
and to its continuance in political power. — Hon. Wm. H. Taft, 
at Kansas City, Mo. 

One vital, dominating fact confronts the Democratic 
party -which no oratory, which no eloquence, which no 
rhetoric can obscurer BRYAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



SUGAR PRODUCTION, CONSUMPTION AND PR!' 



11,9 



•2 c; 



w ^ 



aneo jo^aao jca,^ 



I ic w t t - - - t - ^ :- :-: :c :•: :^ " - 



•^aqjo iu.30 J3fj 



OOiOH>NNHOU')r(OI-l--"»'M' 
C-l h; N O N K •« S M -m' d 'C -"' ? i 71 I - C ' 



w io it ir ■- if '- to •- to to co x 



71 CO i— 'J 37 t - 1 - TO. — 

i oo i - — od 00 



e © s 

gessr 



« (M W O » M to N -J - h r- -m r- x |, », ~ x £ „ - r- i . :: / s : ; 
St"*NMNM0CNKe-*-O X X if 77 37 '"7 TO O 33 t> 



3/)«KtOH7ic:r.O'M^irr"3C-t23 

- TO t 1 -J rl 71 — — ~ C -' ~I-3MI>00 

^ -* —^CO^ "* OS tfflWnNlft3 - — i- -r X) 0» i-i •- 

N m'x cTo -h O m" -j" h K -*" t" t" O M '--" I -" I -" I - 



00, tOT*i/-epi — - i- 

i"3i--3-'" 

r- N H ir - r- C ;". " «fl 



I N 71 71 71 



%Z* 



^5 



* CX) rt 



ii O O « iC IS M M C-l 00 ^ N i' in t 51 M " C I- 71 7i i" 3 - I- O 71 i 
gMNKCNlSMOnaOlMOMKHH lC IPOlOiMO'* tC I- M ir 



Tt<-#-#-*i-r — -rifif — -t-rif — -■ 



os a sue 



x to oi f- ?i — i 



COCOCOCOCOCO-7t--f^'-fCOCOCO--7::7 



nt aondwns I 

•ojisara j 
-op 'not;dains i 
-tioo jo jnao jaj 



73 to to 
37.XX 


8 


eoNaoarfooMHKfflMoinHKNT-c "»• e — — 

HOOOflNf 0MMNC05N if X Xt-lflNriOHO 


O 377 CO 


CO 


lflT)iTfl0L7l}L'53'.C3NO3! 1< <0 IOt~<Ot— © I»- I>- 00 


10 


t» 


NiaMwwnNOootousctooot-HHCiCM — » 


CO 


73 


ooooo'MHomciHKN^mKMHtr-xNc: a ro 






?=3 



o3 q,' 

O £ 5 -3 *C 

0Q 



CO CO CO OttHlPMH 



f hmmc«xX-:"i;-'Sinhi;c 
.. > M a - r - f. -1 x - - C 1- r ^ 1- - :: 

N3nMOC3X O I- X if r- 3 "£ L' « t 1- 



73 1 - 33 CO 00 ■ 
iH X CO NH' 
71 — I-- OCi 



a 

D37r-< 

c "o o 



a O O 3 "* H M 71 •* r- 1- O X C N 71 7. 

[-3N--H-OXNX 

71 77 77 71 77 3 T 77 •; w 



J 77 71 ' " 

■JSNOC.r 



37_ 71 IO CCXHCC-X3717.7: 
—I 73 ■* 737373C0C0C0C0 73C0-^*-t<Tf 



COCO ~ 
7 77 77 If — 

o» os co o» 00 1 !> u> p 7; — 



VT io °P Iff ° t 1 Lo t° — to S r3 3* 22 ?£ 22 5 ^3 2£ 2 53 >". k" I 
wS:7 3?.::c 



w*-*ininciOi.7 0N 



X 71 N N 7C N X - ' TO if X -r IO I 



71 i— ' 37 if /— 71 71 -. w 

" L7 - - C 7i 3 3 t- 



71 -* X CO 77 -f i— 71 — r— -- -h if 17 — — TO 71 TO 37 t- X if — 
h ic N h t l^ o H c X !£ r- 71 71 i7 3 - - - i- :r :: - ; 



O X M X 71 3 3 7: C - 3 C7 N 3 

I- 3 X N 71 77 - I - -7 3 N r 7 - C - 
N N N 1^ X M L7 71 X 'M 3 X -!■ — 73 CO 



C. X if — 

77 — CO 71 
• 73 71 ■"*< CO 



HMlOfflH- 



71 



I 71 ' 



rH 71 



- 



3 co 



w3CKCNNNC7-I3C-J 

or o 7i — ^t- if i~ — to 71 if £- 

71 77 TO iH 3! — if — — 71 — — 
' 77 C3 77 — 37 if 37 If — 77 71 CO 
W — a5 71 77 1^ -+ O — 71 77 71 1^ t~ 37 ~ 37 OH if 

if X u- — O 37* I - CO 37 37 — NOOCOCffl 

J 73 r-l 



X if CO CO 71 if 7 : X 73 O CO 

COCO — X337X- 

2tNC7r-X3 7. -r-X 



:t3l-^7L-L"7NXi- 37 
— ' - H' TO — — I- 71 CO 71 33 r>- 



■ Offlr-'«HHN!iNr-*Ti1 



73 [ C 



V » 2 
o h& >, 

°0=t/^ 



Q r: 



52 






33 = 8 

III 

o St* 



T7 37 CO X X 77 71 
CO 71 71 CO |>, 37^ «5 

X O* X* X* 1 -' 37 C7 

X — t '•7-N-3 

NXI-OOO* 



N 73 I 



: 7-1 



IM T7 X O 3 C 77 
C3 CO 71 — yr X ~- 
f~ Tf C7 -^ 71 73 77 

(37 O X* — 77* CO* f * 

^t- CO 71 — if CO 
CO 37 l~ O t-h 1— 

X* — * O* if* — " !-* 37* 



O 3 = 
A'- 3 
S O 



=■ :- '-; 



pa 



TO 77 if O 71 ' - f 71 lO N 1- i-*t^CO_ 3737 — 1- /- l-OO — 
37 Ift CO -* X TO 73 71 TO -* X if 1 f 77 ,- TO 77 ~ — 1 - 73 — — O 

55 to i>- e« cm c» 3 nhmx -7i- 1- x 'f_if — r- 71 TO If If o 

77 — 71 rH I - -1: if 77* CO X if 0*37 BO — 

— ' X 73 — I - 77 — r. — " TO 71 1- y 77 -1- - - 

>* 55 7 I O - if *f - 1 7 77_ 37_ g 0C1 S gg /; 3 

■ " T3 O 71 7 TO 73 1. ■- r ~ ~ / —" „' — ' — ' -T - ' _" 

^1~ TO_—l-|, 737_-lf I- 77 
73 73 73* 70 71 73 71 7 " 



^— X 

\ -f SB 

SCO 



a3 



if. 73 — 71 1^ 



TO 71 I — _ 1 - . - 

-. h — 71 T- - 1 f* - 

" - -7 ' 

37I-I-710— '-/— ~ ' 

: 7^_ 77 l- — 7 _ V ,~ ,- 

r — 71-1 1 /ri-'-'i. 

o 37 1 r < 

MHM«" 

4 - - _ _ 

1 1 8 = - r 

- 

■♦Mrt X 1 - /"1 - O 

— — — — I - — 7 1 - ■ " " - _- _'—',- . 

— 71" - 



.OOfflO /: O 77 TO 71 I — 73 

■ r I - o: If l- 77 73 / I - 3 7 ■ I - 1 - 3 7 ■ - 7 
— 71 / 3. 71 71 3. — 71 — 

33 1^ 71 -r TO T 71 — 71 — - I 71 77 if — I- 1 - — O 1- — , - — - ■ 

-I- Ol »f 771- /' 3 '7 3 .■ 

T7 /• 77 O I - 37 37 I- 71 37 I- I 

3_, 1 . ,- — /■ 71*17 71*— If — If I- 37 77 O 37 77 — 

3 'l O M 37 37 1 - — 33 37 I - CO — 71 — — r 

73 71 -H CO to 71 77 — 77 CO 77 — 77 -* :' 



'08 stinf 



-r IfSCO [ - 



200 'PRICES OF FARM PRODUCTION. 

RELATIVE PRICES OF ARTICLES OF FARM PRODUCTION AND 
FARM CONSUMPTION. 

The accompanying tables showing prices of articles of farm 
production and farm consumption, respectively, are presented 
with the purpose of giving opportunity to compare the relative 
advance in the prices received by the farmer for his products 
with those which he must pay for the articles which he consumes. 
That there has been an advance the world over in prices of prac- 
tically all articles is quite apparent not only from our own ex- 
perience in the United States, but from official statements made 
by our consuls and others regarding prices in all parts of the 
world and in all the leading articles produced in various parts 
of the world. Elsewhere in this book will be found a large 
number of statements from our consuls in various parts of the 
world indicating a rapid advance in prices in practically all 
parts of the consuming world and in practically all of the arti- 
cles entering consumption. These articles in which prices have 
advanced abroad include many of those necessarily imported into 
the United States for manufacturing purposes, such as fibers, 
silk, wool, hides and skins, india rubber, tin, and many other 
articles ; also requirements for food, including sugar, coffee, tea, 
etc., practically all of which must be imported because of 
the fact that they are not produced in the United States, or at 
least in sufficient quantities for our own population. In addition 
to these advances in prices of the raw materials, the higher 
prices of labor, fuel, and transportation have resulted in higher 
prices of manufactures in the United States and other parts of 
world. The following tables are given with the purpose of sup- 
plying information as to the relative advance in the prices of 
articles of farm production and of farm consumption, and will 
show in most cases a more rapid advance in the natural products 
than in articles in the manufactured state. 



That higher wage level aimed at by the fathers of the Re- 
public, the policy of protection, which they inaugurated, se- 
cured, and still maintain.— Hon. George M. Ely, of Ohio, in the 
American Economist. 

Vigorous action and measures to stamp out existing abuses 
and effect reform are necessary to vindicate society as at 
present constituted. Otherwise, -we must yield to those who 
seel* to introduce a new order of things on a socialistic 
basis.— Hon. Wm. H. Taft, at Kansas City, Mo. 

The panic was doubtless chiefly due to the exhaustion 
of the free capital of the world by reason of the over- 
investment in enterprises that have not been as productive 
as expected. The enormous industrial expansion has at 
last tied up nearly ail the world's capital which was avail- 
able and new investments had to halt. This result was 
world-wide.— Hon. Wm. H. Taft, at Kansas City, Mo. 

I would rather have my boys taught to think the finest 
fbing in life is the honesty and frankness, the truth and 
loralty, the honor and the devotion to his country of Theo- 
dore Roosevelt than to have them in possession of all the 
wealth in this great metropolis. — Hon. Elihu Root, at IVew 
York, Feb. 3, 1904. 

Experience of more than forty years in business has 
taught me that under a low or revenue tariff business depres- 
sion and financial distress has been the rule, while under 
protection good business and general px'osperity has been 
the result.— Hon. N. D. Sperry, M. C, of New Haven, Conn., in 
the American Economist. 

In the Post-Office investigation the source of corruption, 
the fountain head from which flowed the whole miserable 
business, was found not in a Republican, but in a Democratic 
Administration, and it was a Republican Administration 
which applied the lancet and let free the poison.— Hon. Al- 
bert J. Beveridge, in the Senate, April 1, 1904. 

In the ballot-box our liberties are compounded. See to it 
that it gives true expression to the public will. Preserve it 
from pollution: protect and defend it as you would the Ark 
of the Covenant) for it has been purchased by the priceless 
blood of countless heroes upon the battlefields of the Re- 
public — Hon. C. W. Fairbanks, at Baldwin, Kas., June 7, 1901. 



PRICES OF FARM PRODUCTION. 



201 



•|JBUb 



lO m (T5 Ifl -* CM CM CI CI CM CM CM CI CI CM CI CM CI CI CI CM CC CO 



•3SJBO0 



mnrpaiv 



•atuj 



-ti CO CM CC CO CO Ol I J CO (M r-4 rH i-H CM (M CM CI (M CM (M CC CC CO CO 



^Xrtni-COC:N^-fCHHCOM3:HHCCC-'MaNO 
+? ■* CO CO CO CO CO CO CO CO C-1 CI <M rH CM CI CO CO CM CM CO CO CO CO CO 



.Hajccourcr-cicM-" 

I CM CM (M <M CM CM CO CO CO CO CO 



•panod 
jad 'oooBqox 



I^OONMWNOO-iiOLONlCONMNONCCtOOlCH 
l>" OS GS 00 00 00* 00 CO 00 OS° 00 00 00 00 00 OS CO OS OS C2 OS ci e» • 



•panod 
.iad 'uojioo 



HMl,OaHMirNOHO^-fMO'*CfjlOlCCOOOOCO 
lOOO-fNClOCOtOt-L-iCs^aOOOONNOHNOOUtH 

riOOffidodrt(»I>()OONNNin®oi<»0 rH i-4 OS rH CM* 



•aazop 
J3d 'sSSfl 



■lf5LOCOCOOSCS-r<l— ©ClOSOOI-XlCOi— lOmiClOWOlOi 



•panod 
J3d 'asaaqn 



:ncocococ5moo«-t<t-H-*Hi 



KMOiHCsint-NO 



• •panod 
jad • .18 'i/jug; 



riOO!DOOOI10^i3 000'*'MCCOCC(MmCOin'*0- 
1~ O I" if" X CD -ti' -*" o oj !>-' cc ' id -4 id to" t-" I-.' oo 00 CO CO 00 < 



aoj asd'^BH 



xxosoot-t-oocoxpxoocococoi^coocr.csooccoi 



•jsqsnq 

I8d 'sSOlB^Otl 



■ Nc-HMttnooH-fotooi 



■ -* O i-H t- i-H ■ 

r-4 o" co" to i-4 i 



•pi38q 
.i8d 'aatAi-s 



■ t-CO lOffiN 



•ptnq 
.i8d 'doaqs 



h ■* h r- ir m !- o '/ it x x co ~ i to > r- c: r ^:cc:««-" 
NHacor-ML-Lca^iM-MtNfflofflwiow-iooo 

CM CM t-l CM CI CM* CM* <m" CM CI rH i-H i-i i-H cl Cl" Cm' Ol CM Cl C1.C1 CO CO 



•puaq .iad 
'8U4U8 J8 ;o 



NHNNOl 



. O cr f- OS OS ! 



•pBaq .xad 
?.woo qoin\T 



MOINffl-MMt-i, 



h m N n n c. - c - — — i - 



Ol CM Ol Ol 1 Ol Ol Ol CM Ol CM Ol CI Ol CI Ol CO CO CM CO CM CM CM CO 



•peaq 

.I8d l S8[UI\T 



•puaq 

.I8d 'S8SJOH 



'facrenq 

J8d '8^H 



•laqsnq 

jad 'A8i.n;$T 



rH CI OS 00 CS CS CC l-lTCMNlf HV' 



to X' i ~ r~. t» t» t^ i 



■*■*-* ir: co < 



i^ cm oo r~ oo ci 



ICONO 
:- I- CM r- 


NCJ-fOHIMMCNHCO 
OOOOOOOOClOGCIOlOCl* 


HOH1TKNIMH 1 
CD 00 CO 01 C CC I- LO I 


— < CO i-H CM 

ir r- w r- 


HHO0SlTIHN«>WHH( 
»> i - CO to CO O •* CO CO CO CO 


fe 


-h CI 00 CI t- O O CO 1 

rfieiOCDCDI^-OOCS 1 


t0CS00U000C0O5-*CMC0rHOOr-C0 


ONNOOinoOHOH 1 



y ur : - DOSOOt "iohni 

-rH-^ 

Qtoioicmm t^co io 



■coi-cocoxcicrtrocoioco 

'oil-'— S rH to 



■jaqsnq 

.iad v)U() 



•|8qsnq 
.IDd 'u.io, ) 



"laqsnq 
.tad ')i-v>i|.Vi 



:oicoo-i , oo-:-'Ci-'H-r i - o 1 i - .- x -.1 so i-i t- 1 

rr cd 00 — ' — . 1 - 7 i o' — — ' - oi r' a — ' ■ - - ' " - 2 - ' -■ - — 
O CO Cl Ol CC 0! -. 1 - 1 cm 00 CO CO CO CM co 



— — ' 



- 



I 00 .TS -*• 00 ^ ■ -CO^MNf 

• Cl — " ^ l~ 

. - 



: 



. 



©^ 






202 



PRICES OF FARM PRODUCTION. 



S bo 

E « 

o 
t--> E 

© O 



Si, 
C 



•streSojq 



s^uajf 



>CNU>i-li-l©©©0©aj01CSGi< 



OOOSIOHMCO^I 



lajjisq jad 



TB§ jad '[[O* 



•putiod jad 

'qojt^S 



■uoiyeS jad 

'sassBioj\[ 



•piiRsnom 
jad 'sap3tqqs 



•uazop jad 

'siaAoqs 



•spunod 00T 
jad 'siib^i 



•COr^t^OOC500-*OCi05C<lC2QOC005i»OOtOCOt~(M(N<D(M 



U^ co' © in in in in" © © © in^ in in in' in in ->*'"* in in in in* ©' 



ICO»t<©00-*i-l00(NI>>0000T!<O»cM©00 



VNONOOOIONi 



iCO-*eOCO<MCOCOCOCOCOC<]CO< 



t-NtOlTMN 



I cq' co' co" co' co co* co' co co' ti (N* nmnnnn <m" <m' <n gxj co* -■*" 



COO0JT^l^l^t-i^t^l^r^ininTMC0COrHOqCN©ejll~<>1Cq-'# 
©O3GO0OCOC»COC»0O00^^CO©©©r-lr-lCO©©©©GO 

©co'j--°r~t"~t~i^j>'i-~i>r~i>t^r^i>'GO©C5©ooi"-r-°i-~^ 



C>5{J<NIN1NN(MHHHi 



NMININiNrlHHIN 



ao^ jad 



'IBOO 



•pnnod jad 

'aajgoo 



•pxejC jad 

•s^ada^o 



•qo^a 'sS^g 



lOOlBH-ftOinWOOOOOOlONOQOOlCM^ 
lHOOMOO)OOC;OjaiC10tOiaN-*OOa5ot)(NHH(M 



(u5O(N<DNOC0t0^ro0t)<»i 



•pjB^ jad 



•pji3.£ jad 
'sccngqSuio 



•pj-Bif Jad 



•pjB^ jad 

'sSnr^Jiqg 





CO © -«Jf (O 


-Hin-^coo^mOr-ioop 

■*]^OHOIOC1NIOOOOW 


© >n co co co © 
•* r^ rH co m <S 


CO CD GO 
CO © CO 


o 


ci m -it! -* 


lmniowio^NH 


wcoco 


t 


in th ->* -* t- 


in oo oj 














CO 


oooominmcooinorH-Hip 

COCONIMNHONlOOOCOO 


r-ll^© 


8 


-H CO o -*co 

OOHIOOH 


o3g?2 



inrjriMNNNHHHOOOaOOOlOOOHWOINM 



•00r~©0O00CO<MlOmCOCO< 



INOOHr-lOCCOQQOlOinOO 
)NCOtONHO(NlO-*H<OlO 



-* in m m w m co 



t<jinoffliOi';cinoiooin^oo«iooo-*o)NO« 

;©NOHMlNlOWlC(NlO«(NO-*a5lMOOONHlOO 

' i-- in co in co co" co' in co' co" in m' in in -* -*' in in in in in m in co 



NOOOOOOCOOCSOOJOlOOOlOOOOOONOOH 



•pje£ jad 

ssunojo 



•pj'B^: jad 

'sSui^aaqs 



•punod jad 

'JBSns 



oocococDcDcococDinininminTf'fin. ioitukonn] 



JO 00 00 X3 OO X) 



xxcnooioaojo -r. 



PRICES OF FARM PRODUCTS. 



203 



Prices of Principal Agriculture Products on the Farm Decem- 
ber 1 5 1892, to December 1, lf>07. 

[From report of Department of Agriculture.] - . 

Farm prices of wheat i>er busha. 



State or- Territory. 



Maine 

New Hampshire 

Vermont 

Connecticut 

New York 

New Jersey 

Pennsylvania 

Delaware 

Maryland 

Virginia 

West Virginia __. .'__.. 

North Carolina 

South Carolina 

Georgia 

Ohio 

Indiana 

Illinois 

Michigan 

Wisconsin 

Minnesota 

Iowa 

Missouri 

North Dakota 

South Dakota 

Nebraska c 

Kansas 

Kentucky 

Tennessee 

Alabama 

Mississippi 

Texas . ._ 

Indian Territory I 

Oklahoma 

Arkansas 

Montana 

Wyoming 

Colorado 

New Mexico 

Arizona 

Utah 

Nevada 

Idaho 

Washington 

Oregon 

California 



1892 



General average 



1894 



l.OO 
.53 



.491 



1895 



$0.82 
.76 
.69 
.68 
.68 
.71 
.65 
.61 
.64 
.65 
.69 
.72 

Iss 

.82 
.60 
.57 
.53 
.60 
.51 
.41 
.46 
.51 
.38 



1393 



$0.S1 

1.00 

.93 



.88 
.89 
.83 
.87 
.88 
.80 
.78 
.83 
.89 
.89 
.78 
.80 
.74 
.84 
.70 
.68 



1897 



'.is \ 

.76 ' 
.74 

.85 
.82 

.75 



$1.06 

1.10 

1.01 

1.00 

.90 

.93 

.91 

.91 

.93 

.92 

.89 

.91 

1.18 

1.03 

.88 

.89 

.89 

.87 

.84 

.77 

.75 

.85 

.74 

.69 

69 

.74 

.89 

.95 

1.01 



.81 
.68 
.70 
.70 
.75 
.74 
.68 
.90 
.70 
.68 
.72 
.83 



1900 



$0.90 
.92 
.78 
.82 
.77 
.74 
.72 
.70 
.71 
.72 
.77 
.82 
1.01 
.95 
.71 
.70 
.64 



.64 
.63 

.59 

.63 
.58 
.53 
.53 
.55 



$1.04 



1.13 



1.09 

1.10 

1.08 

1.08 

1.06 

1.09 

1.09 

1.19 

1.26 

1.26 

1.10 

1.00 

1.01 

1.08 

.98 

.87 

.90 

.96 

.81 

.79 

.87 

.89 

1.09 

1.11 

1.15 

1.01 

1.10 

.98 

.93 

1.01 

.89 

.90 

.91 

1.06 

1.13 

.86 

.92 

.80 

.80 

.81 

.88 



1907 



$1.01 

"Too 



.98 
.96 
.97 
.96 
.98 
1.00 
1.07 
1.20 
1.15 
.92 
.88 
.87 
.91 
.92 
.92 
.82 
.84 
.87 
.89 
.79 
.82 
.92 
.95 
1.05 
.85 
.99 



.83 
.95 
.81 
.77 
.78 
.93 

1.05 
.74 

1.04 
.67 
.75 
.73 
.98 



Farm values, corn per bushel. 



State Or Termor 



Maine 

New Hampshire 

Vermont _. 

Massachusetts - 
Bnode Island — 

Connecticut 

New York 

New Jersey , 

Pennsylvania ___ 

Delaware 

Maryland 

Virginia. 

BFesi Virginia .. 
North Carolina 
South Carolina 

Reorgia 

Florida, . 

Ohio 

Indiana 

Illinois 

Michigan 

Wis< onsin . 

Minnesota 

Iowa 

MHssouri 

North Dakota - 



1892 



Cts. 
67 
65 
64 
62 
63 
62 
60 

' 58 
57 

!l 
15 
53 

54 

56 
60 

12 
H) 
37 
40 

88 
37 

40 



1S95 



Cts. 
54 

51 
48 
52 
56 
51 
45 
42 
39 
31 
37 
37 
10 
38 
46 
M 



Cts. 
47 
45 
38 
46 
[9 
42 
38 
36 

25 

32 
31 

Hi 

13 
53 

21 
19 
L8 

■!! 

19 

ll 
20 



Cts. 
17 
45 
43 
17 
54 
49 
40 

31 
30 

30 

10 
13 
19 
is 
55 
25 
"I 
21 

17 
21 



Cts. 
55 
5i 
50 
51 
67 
55 
17 
15 
15 
38 
41 
49 
50 
57 
61 
57 
60 
::i 
32 
32 

37 
33 

I 

42 



190? 

Cts. 
66 
63 
62 
66 
81 
67 
60 
57 
57 
49 
51 

64 
61 
69 

7:: 
17 

::,, 

16 

13 



1904 


1907 


Cts. 


Cts. 


SI 


75 


72 


i •) 


73 


."> 


72 


75 


81 


SO 








< -> 




71 


" 




59 


64 


19 


52 


50 


54 


59 


64 


64 


72 


62 


74 


ro 


ra 


71 


76 


i 5 




in 




ii 




39 




52 


a 


16 


55 






33 




H 


47 


40 


60 



204 



PRICES OF FARM PRODUCTS. 
Farm values, corn per bushel — Continued. 



State or Territory. 


1892 


1895 


1896 


1897 


1900 


1903 


1904 


1907 




Cts. 
33 
28 
31 
40 
43 
52 
51 
50 
45 


Cts. 
23 
18 
19 
27 
27 
37 
37 
40 
31 


Cts. 
18 
13 
18 
25 
28 
45 
44 
45 
41 


Cts. 
21 
17 
22 
35 
36 
46 
45 
45 
41 


Cts. 
29 
31 
32 
40 
49 
58 
58 
50 
47 


Cts. 
35 
28 
36* 
56 
49 
57 
54 
58 
48 
39 
38 
51 
62 
58 
54 
75 
90 
70 
57 
55 
67 
74 


Cts. 
36 
33 

41 
49 
50 

60 
56 
57 
52 
40 
39 
53 
68 
57 
54 
78 
91 
72 
70 
66 
61 
78 


Cts. 

48 




41 




44 


Kentucky 


53 
57 




75\ 




75 


Louisiana — 

Texas 


70 
60 


Oklahoma 










26 
43 
59 
60 
48 
64 


44 


Arkansas 

Montana 


47 
70 
61 
40 

72 


32 
75 
57 
41 
56 


37 
60 
78 
36 
55 


40 
65 
50 

38 
58 


68 
68 
70 




65 


New Mexico _ 


72 




90 


Utah 


58 


49 


51 


55 


63 


72 


EJaho 


70 


Washington 


60 
56 
55 


40 
55 
53 


57 
56 
53 


55 
-53 
56 


59 
57 
61 


70 




74 


California .. _- 


85 






General average 


39.4 


25.3 


21.5 


26.3 


35.7 


42.5 


44.1 


51.6 



Farm prices of oats per husliel. 



State or Territory. 



Maine 

New Hampshire 

Vermont 

Massachusetts __ 
Rhode Island __- 

Connecticut 

New iTork 

New Jersey 

Pennsylvania - — 

Delaware 

Maryland 

Virginia 

West Virginia _. 
North Carolina _ 
South Carolina - 

Georgia 

Florida 

Ohio 

Indiana 

Illinois 

Michigan 

"Wisconsin 

Minnesota 

Iowa 

Missouri 

North Dakota __ 
South Dakota — 

Nebraska 

Kansas 

Kentucky 

Tennessee 

Alabama 

Mississippi 

Louisiana 

Texas 

Indian Territory 

Oklahoma 

Arkansas 

Montana 

Wyoming 

Colorado 

New Mexico ._ 

Arizona 

Utah 

Nevada 

Idaho 

Washington 

Oregon 

California 



General average 



Cts. 

45 
44 
43 

49 
45 
39 
41 
40 
38 
3& 
39 
41 
45 
52 
52 
55 
35 
31 
31 
35 

28 
26 
30 
28 
23 
23 
26 
37 
38 
51 
50 
50 
38 



1893 



Cts. 
45 
43 
42 
42 
43 
40 
30 
35 
35 
38 
35 
35 
38 
44 
53 
52 
55 
30 
28 



33 



1895 



Cts. 
34 
35 
33 
34 
39 
31 
28 
29 
27 
29 
27 
30 
32 
38 
49 
46 
65 
22 
20 
17 
23 
IS 
14 
11 
18 
16 
17 
14 
17 
26 
27 
42 
39 



Cts. 
31 
35 
31 
35 
31 
31 
26 
28 
24 
21 
23 
26 
28 
35 
48 
41 
53 
17 
16 
15 
19 
17 
15 
12 
17 
18 
13 
11 
16 
24 
26 
41 
44 
34 
34 



31.7 29.4 19.9 18.7 21.2 25.8 31. 



1897 



Cts. 
32 
38 
32 
33 
34 
34 
27 
30 
27 
23 



Cts. 
38 
38 
36 
38 
38 
35 
32 



31 
37 
34 

45 
48 
49 
50 
26 
2:! 
23 
26 
23 
21 
20 
23 
32 
24 
24 
23 
31 
35 
44 
46 
40 



44 



FREIGHT RATES, 1868 to 1901. 



205 



Grain, Chicago to New York, and average rates, in cents, per 

bushel. 

[From Bulletin No. 15, Revised. Miscellaneous Series, of Division of 
Statistics.] 



Year. 



1S68.. 
1869. _ 
1S70— 
1371- 
1872- 
1873— 
1874„ 
1875- 
1876_. 
1877— 
1878— 
1879— 
1880— 
1881- 
1882— 
1883— 
1884- 
1S85„ 
1886— 
1887— 
1888_. 
lS89a 
13)0- 

isei_i 

l:- l >2— 
:y;:-i__ 
1894— 
18 15— 
1896— 
1897— 
18J8— 
1899— 
WOO— 
1!J01__ 
im)2._ 
1903— 
L90*„ 
1905— 
1006- 
1907— 



Wheat. 



Via lake and rail. 


Via all rail. 


Via lake 
and rail. 


Via all 
rail. 


As re- 
ported 
by New 
York 


As re- 
ported 
by Chi- 


As re- 
ported 
by New 


As re- 
por.ed 
by Chi- 


As re- 
ported 
by Chi- 


As re- 
ported 
by Chi- 


Produce 

Ex- 
change. 


cago 
Board of 


Produce 

Ex- 
change. 


cago 
Board of 


cago 
Board of 


cago 
Board of 


Trade 


Trade. 


Trade. 


Trade. 


Cents. 


Cents. 


Cents. 


Cents. 


Cents. 


Cents. 


29.00 
25.00 




. 42.6 
35.1 


37.84 
35.57 




35.32 


25.20 


23.55 


33.20 


22.00 


22.50 


33.3 


30.00 


22.20 


28.00 


25.00 


25.42 


31.0 


31.80 


23.72 


29.68 


28.00 


29.50 


33.5 


34.99 


26.60 


32.66 


26.90 


24.61 


33.2 


31.02 


22.98 


28.93 


16.90 


17.09 


23.7 


2d. 25 


13.88 


24.50 


14.60 


13.89 


24.1 


24.00 


13.03 


22.40 


11.80 


11.36 


16.5 


16.86 


10.79 


15.74 


15.80 


15.46 


20.3 


20.50 


14.06 


18.90 


11.40 


■ 12.09 


17.7 


17.70 


10.53 


16.52 


13.30 


13.13 


17.3 


17.74 


12.20 


14.56 


15.70 


15.80 


19.9 


19.80 


14.43 


17.48 


10.40 


10.49 


14.4 


14.40 


9.42 


13.40 


10.90 


10.91 


14.6 


14.47 


10.28 


13.50 


11.50 


11.63 


16.5 


16.20 


11.00 


15.12 


9.95 


10.00 


13.12 


13.20 


8.50 


12.32 


9.02 


9.02 


14.0 


13.20 


8.01 


12.32 


12.00 


12.00 


16.5 


15.00 


11.20 


14.00 


12.00 


12.00 


al5.74 


15.75 


11.20 


14.70 


11.00 


11.14 


al4.5 


14.50 


10.26 


13.54 


, 8.70 


8.97 


15.0 


15.00 


8.19 


12.60 


8.50 


8.52 


14.31 


14.30 


7.32 


11.36 


8.53 


8.57 


15.0 


15.00 


7.53 


14.00 


7.55 


7.59 


14.23 


13.80 


7.21 


12.96 


8.44 


8.48 


14.7 


14.63 


7.97 


13.65 


7.00 


7.00 


12.88 


13.20 


6.50 


12.32 


6.95 


6.96 


12.17 


11.89 


6.40 


10.29 


7.32 


6.61 


12.0 


12.00 


6.15 


10.50 


7.37 


7.42 


12.32 


12.50 


6.92 


11.43 


4.96 


4.91 


11.55 


12.00 


4.41 


9.80 


6.63 


6.63 


11.13 


11.60 


5.83 


10.08 


5.05 


5.10 


b9.98 


9.96 


4.72 


9.19 


5.57 


5.54 


9 , 02 


9.88 


5.16 


9.21 


5.78 


5.89 


10.60 


10.62 


5.51 


9.94 


6.17 


6.37 


11.33 


11.29 


5.78 


10.54 


5.02 


5.50 


'11.11 


11.12 


4.82 


10.38 


6.44 


6.40 


10.20 


9.90 


5.19 


9.40 


6.48 


6.35 


10.50 


10.20 


5.72 


9.52 


6.93 


c 


11.30 


c 


c 


c 



Corn. 



a Average based upon officially published tariffs*: actual rates lower. 
b After 1899, for domestic consumption; rates for export lower. 
c Data not available. 



Accra ge annual freight rates from 1870 to 1901. 
[Prom Statistical Abstract.] 



Year. 


Freight rates on 
wheat per bushel. 


Freight rates on can- 
ned goods, per cut., 
from Pacific coast 
to New York. 


Chicago 

to New 
York, by 

rail. 


Buffalo 

to New 

York, by 

canal. 


Less 
than car- 
load <. 


In car- 
loads. 


1*70 


Cents, 

;;;;.:; 
31.0 
33.5 
33.2 

24.1 
L6.5 


Cents. 

11.2 
12.6 
13. 
11.4 
10.0 
7.9 
6.6 
7.4 
6.0 
6.8 

6.5 


$3.66 
3.76 
3.74 

3.69 
3.78 

;;.iiti 
:;.:: 

4.06 

f. 17 
4.20 

4.20 


$3.6(i 
3.76 
3.74 
::.6;» 
3.73 
3.66 
3.77 
4.06 
4.17 
4.20 
4.21) 


1871 

1*72 


1873 

1-71 


1875 


(876 




1373 ._ 

i»7;i 


17.7 
17. :; 
19.9 


1^30 



206 FREIGHT RATES, 1868 to 1907. 

Annual average freight rates from 1870 to 1907 — Continued. 



Year. 



1881. 

1882 . 
1883. 
1884. 
1885 . 
1886 
1887 
1888 
1889 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1906 
1907 







Freight rates on can- 


Freight 


rates on 


ned goods, per cwt., 


wheat per bushel. 


from Paeiiie coast 






to New York. 


Chicago 


Buffalo 


Less 




to New 


to New 


In car- 


York, by 
rail. 


York, by 
canal. 


than car- 
loads. 


loads. 


14.4 


4.7 


2.54 


2.54 


14.6 


5.4 


1.50 


1.50 


16.5 


4.9 


1.50 


1.50 


13.125 


4.2 


1.50 


1.41 


14.0 


3.8 


1.50 


1.25 


16.5 


5.0 


1.18 


1.01 


15.74 


4.5 


1.55 


1.20 


14.5 


3.4 


1.89 


1.13 


15.0 


4.8 


2.30 


1.08 


14.31 


3.8 


2.30 


1.00 


15.0 


3.5 


2.30 


1.09 


14.23 


3.5 


2.30 


1.05 


14.7 


4.6 


2.30 


1.00 


12.88 


3.2 


2.30 


1.00 


12.17 


2.2 


2.30 


1.00 


j2.0 


3.7 


1.91 


.75 


12.32 


2.8 


1.90 


.76 


11.55 


2.8 


1.90 


.75 


11.13 


3.0 


1.90 


.75 


9.98 ' 


2.5 


1.90 


.75 


9.92 


3.5 


1.90 


.10 


10.60 


3.8 


1.90 


.75 


11.33 


4.0 


1.90 


.75 


•11.11 


3.2 


1.90 


.75 


10.20 


3.9 


1.90 


.75 


10.50 


4.2 


1.90 


.75 


11.30 


5.0 


1.90 


.75 



The State Is potent. Corporations and combinations which 
derive their breath from the State are within its absolute 
and perpetual control. — Hon. C. W. Fairbanks, at St. Paul, 
Minn., August 31, 1903. 

Corporations that are handled honestly and fairly, so far 
from being an evil, are a natural business evolution and 
make for the general prosperity of our land. We do not 
wish to destroy corporations, but we do "wish to make them 
subserve the public good. — President Roosevelt at Cincinnati. 
Ohio, September 20, 1902. 

We must regard and have an interest in what our neigh- 
bors are doing, and when we can assist them, we cannot 
pass by on the other side as the Levite did, but we must 
take them up as the Good Samaritan did and bind up their 
wounds and prepare to send them on their -way rejoicing.— 
Hon. Wm. H. Taft, at Cleveland, Ohio. 

Let nothing distract us; let no discordant voice intrude 
to embarrass us in the solution of the mighty problems 
which involve such vast consequences to ourselves and pos- 
terity. Let us remember that God bestows supreme oppor- 
tunity upon no nation -which is not ready to respond to the 
eall of supreme duty. — President MeKinley at St. Louis, Oct. 
14, 1898. 

It is probable that the stringency which reached its 
height on that dark day of October 24 might in part have 
been alleviated had we had a currency which could auto- 
matically enlarge itself to meet the tremendous demand of 
a day or a week or a month, while public confidence was 
being restored. — Hon. Wm. H. Taft, to Merchants and Manu- 
facturers' Association, Boston, Mass. 

The right of rail-way corporations to a fair and profit- 
able return upon their investments and .to a reasonable 
freedom in their regulations must be recognized; but it 
seems only just that, so far as its constitutional authority 
will permit, Congress should protect the people at large 
in their interstate traffic against acts of injustice -which the 
State governments are powerless to prevent. — President 
Arthur. 

But the most gratifying feature of this picture of bank- 
ing and financial conditions in our country is the fact that 
deposits in savings banks — those institutions for the safe- 
keeping of the earnings of -workingmen and widows and 
iM°g>bans and children of the country— have increased from 
£550,000,000 in 1870 to $3,500,000,000, in 1908. What say you 
business men, of the future of a country -whose working- 
man and working woman and children have three and a 
lalf billion dollars laid aside for a "rainy day."— O. P. Austin. 



NUMBER AND VALUE OF FARM ANIMALS. 



20? 



T 


£r- 


3fi 




c 


X 


g 


, , 


1- 


4 


»>H 


6 








3 





PS 


S3 


- 




fcc- 1 






r- 




er- 




C. 
cc 

H 




as 


bfl 
< 


7. 


O* 


~ 


*o 




a 


p 




s 


art 

b8 


■Jr, 






c 






s 
< 


C5 


1 


03 

- 


- 


« Cl 




© 










« 


P £2 


5 




44 
5 




e 


c 

X 


91 

= 


^ o 


>-> 

O 


o 

a 


S 


■a "3 




u 


> 


o~ 


§ 


o3 




•_ 3 
g 5 


e 


3 
3 


h 


~~ 


^ 


d 


= 


z* 


*s 


03 

CD 


- 
11 


CJJ.G 


s 





C 


« 


3 

p 


= 


i3 c3 


h 


ft 




Is 


1 — ■ 






ss 

< 






03 © 









-' X 


* = « 


CNrsOOO-'f OKtOlSNCII-O 




N N MI! » t Ci -t O O H M r- L^ CI L- :^ © ";] 






eS i - 


HNOOONHH © X-'M-xtr.CI- so so 

^MfrHai-v x © ci c — — © c © -r cc 


OS 




h 


MNNNNHHHHH«MiMK(MK:*-f 



© « lO N 3 N « O ?, M H M O X N CO ^ " O? 

»&■*•* tC NNN-II C- CO H|, Svotin M O 

XCO^©H<r-©ClrH<©©l©l©COH--H©.lr-o 
rH OS 00 CN 30 © Ml- i- C N r- ^.) N. {•] i- O ~ C- 

r)i H O -t M if iff N M H f O H ft C-l « Ml- O 

M O H IP O O © -— C l^ K CI -* © CO t— f~ <© 

-f H-fSlI 00 (O I- N X IC -» O CO 7j C-i ^ M 

«N«NNNi-<HHHHMMMcm.lM*eO 

0®fflNCO<9ffiOMHONO^t»HN- — 
» 5 - O ?! H L" N ~ ?C Iff T ~ CI C H -* M s 
N H O X t N 1- CI ~ 3 M H CO © CC LC X - O 

©fiff'x" -t- spiff cieri" ©*of co oT©"© ci — — 

o ci r. a S c t o k; r i - ■/, - el - ci s ~ x 

!0©nOC)HX(ON©bffl<OC»OMHNO 
iH©CI©lffH<clO© XI-O00ONI>Ci-'C 

iniffiiO"t'* T * T i , '^ccc:Mio-iiT?Ti(niininLff. 

HNOtOMTOlMOMfflHOaO'tCO 
B-t-SOH-OC»J3iMyirtN©50M«TilNa 
N-dClHNNC:HlCC;tONOCOHHC 

© tC^rH © © iff f- O — I t~ Iff Cl'oiff OHOO CO 

iff — . c i © cc x'.:cj;i- ci--tffMMir- co 

OWHOHCOHfeNSaOitMlffMOCl t--. 

§"oo so»oes co»Ois ffi t> ci oo -f aS.eofc- ca nf ih 
O H C-l X CD a C SCMNCOKNNOH 
rH rH t-l r-l rH r-l rH i-i i-l r-l rH rH ©a ©J 



"MGClO 
< CM m » O 

l ■* <C CI O 



©©-1-00^-© — I 

Iff CO © CO r- cc - CO I 

. . acio O^lWXO r-t 00 ic- © © © i— ' © ci © J 

-rHOO •>*J>lff CI x"© 1^ ©r-H ©"WMHIOC'*'* I 



iMMtHCOOW' 



lo^nocoh-ooocccj 

Iff © H< CI r— CI CC CC © © 

HClNHtHltOH--- 



„l, a or.: © 
©coo © - o 

(NOOG5riMl»«0 



iff f- © CI © © X © CI HS-r C-XHHN 00 

ci oa -^ oc oo © cj ci cc cc x — ci iff i- i~ r- ic co 

OHNMNCSCC. C1CC — CCi—Ct— Iffr-lff© 



' CC — • CI r- © r- i 



ifflOKMOlO- 



© © CD © 00 00 t~ i 



i © 



— X CC CC X CO ff X N Iff -f M N O X M CO 

ci h- co cc © i — © © cc- ci iff -h cc © © h- iff 
©©ci-^ — ci-*--*- j oi©cir-©J-*-*© 



rH© I 



00 X © © CC CO © iff MC ClffNOOCC 



SS l S 



CO © Cl iff i-J CC uff CC CC © © £- -" "* © CC CI © © 

CO © CO X CC Cl -r cc n C I © I - C! — ' X © © X © 
rH © rH r~ © i^ Ifi © X © -H © CO © -T Cl Lff © © 



eg t> oo © co i 



liCO © rH rH C5 00 © r- 

)©r^cc©©iffccr-ico — ffMHtNxai: 

fMMCqOOCCC-IXClXOHNXNNVO 
.COHr-QTJ«l(MC5HHHLnXCDXC-l'MLCIO 

iNHOXHOxX'tw 
- •• © © © 



© Iff H> © Iff ■ 



HHNOacSNCOuCONCCjNt-- 

© iff x © Cl 00 ci x h c Lff 6 co h ; 
■ — rr © © t~ 00 r-> CO © X Cl X - 



00^© co©_ 
ci©©-H.r^"*r-i-H©ocico©iff©! 

Iff H rH Cl X © CO -h -*• © © CO © © r-i L _. 

ao""*-LCHc:x:cciMOr-"*iffNc>-< 

L'-C0C0C0C5OCCLClfflffCOONt~NOO — 
rH-HrHrHrHrHrHrHrHrHrHrHrHrHrHrHiHClCCI 



COr-NCC? © 



t^ Cvl 00 © CO i 



O O H H - N = CS H M ff ' 

t^ t~ © rH co I.- © — cc © © © ci co r^ ci 

' CO © t^ CO X H. © iff Cl © Cl I - CO X CO © © c 



co ci r — ?ci~ cc i 

© CC Cl © © © cc 
i I ~ Cl © Cl CO H © i 



• co ci © © co © 

• Lff CO -* CO © CO 
■ l^ Lff CO cc © © 



co © iff — co © i- t~ i x © 

' © © © —i -X X © — iff • 

I HHHHNClMT).-t 



I - Cl © '/) — i X © h. ci CC I- X I- X < 



-- c — — ' Cl cc X iff © — © — ■ i 
cc -. — cc i- c- I © CC CC I 



ci ci ci ci ci ci ci ci ci ci ci ci ci ci co cc • 



^ o 
Ho 



ci c i cc iff © © © © i - co ci r 

■~ C 1 "• /. © t. X © © rH H- © I - . 

iff Cl © r- I - iff r- CO — X -r — — © Cl & © 



© I - l~ © ■ 



COhi-MCCDOCIXHKI 

t~ -* © © © i- © iff i - — r 

© © © © L- Iff Iff • ! _ 



Iff © © - ' - 



© © C © © I - 
: O '-^ Cl iff X X 



.OCCI--!XI-l-HI-- 

i ££> hji ff c: -. i" co h c c 



> co x> © — i co -*. — ©ic 

r ci © © •- 

1 © — C 1 © X i— CO © © 



co — co © c i . c : c 

CICl 1^ l- 

i^ ci co © i- i- iff r. 



— i - •.- i - i © 



i - x© © 









LABOR CONDITIONS UNDER REPUBLI- 
CAN AND DEMOCRATIC ADMINIS- 
TRATIONS. 



EMPLOYMENT, HOURS OF LABOR, AND WAGES. 

The prosperity of a nation is always evidenced by the con- 
dition of its wage-earners. Good wages and steady employ- 
ment are invariably indicative of sound business conditions and 
public confidence in those who direct the country's destinies. 
That the unexampled prosperity which has been manifest since the 
return of the Kepublican party to control and the enactment 
of a protective tariff has continued under the second administra- 
tion of President Roosevelt is amply demonstrated by the bulletin 
on wages and hours of labor recently issued by the United 
States Bureau of Labor.* To obtain this information, which 
is published annually, special agents of the bureau were sent 
to representative establishments in various parts of the country 
to copy directly from the pay rolls the figures showing the num- 
ber of persons employed, the average wages paid, and the hours 
worked per week. This investigation was conducted with the 
greatest care by experts specially trained for this class, of work, 
and the results shown are believed to be trustworthy in every 
respect. 

The following tables, which have been compiled from this and 
preceding numbers of the bulletin, show in actual and relative 
figures the number of employees, the average number of hours 
worked per week, and the average wages per hour in 15 leading 
occupations during each of the years 1890 to 1907. The number 
of establishments furnishing the data is given at the head of 
each table. 

To facilitate the study of the figures the bureau of Labor 
computed a relative number to accompany each actual number. 
These relative numbers serve a double purpose — first, they pre- 
sent to the mind of the reader more clearly than the actual or 
concrete numbers the measure of difference between the data 
for a series of years, and, second, by their use combinations 
are made possible that cannot be made with concrete numbers. 
In making comparisons, therefore, between data for individual 
years the relative, rather than /the actual, numbers should be 
relied upon. While all comparisons might have been made 
with 1890, or any other year, it was thought best to take as a 
basis for comparison, or 100.0, not any one year, but the aver- 
age during the ten years from 1890 to 1899, owing to the fact 
that the conditions in any one year might be abnormal. On 
the first line, therefore, of the table given below (for black- 
smiths) appears the number 576, which was the average num- 
ber employed during the ten years from 1890 to 1899 in the 
166 establishments investigated. In the second column is the 
relative number 100.0, indicating that the number 576 is taken 
as the basis, or 100.0. In the second line, second column, is 
given the relative number 99.5, indicating that in 1890 the 
number of employees was 99.5 per cent of the average number 
employed during the ten-year period from 1890 to 1899. The 
other relative figures may be used in a similar manner. In 
computing the relative number of employees for different years 
account was taken of the increase or decrease in the number 
of establishments considered. 

* The bi-monthly bulletins of the Bureau of Labor are published for 
tr— distribution and can be obtained on application to the bureau. 

208 



EMPLOYMENT, HOURS OF LABOR AND WAGES, 



209 



Blacksmiths. 
[Data from 166 establishments 1890-1903; 192, 1904; 179, 1905; 188, 1906; 197, 1907.] 





Number of 


Average hours 


Average wages 


Year. 


employees. 


per week. 


per hour. 




Actual. Relative. 


Actual. 


Relative. 


Actual. 1 Relative. 


Average 1890-99 


* 576 


100.0 


59.09 


100.0 


$0.2639 


100.0 


1890 


573 


99.5 


.59.41 


100.5 


.2677 


101.4 


1891 


579 


100.5 


59.20 


100.2 


.2681 


101.6 


1892 


583 


101.2 


59.37 


100.5 


.2672 


101.2 


1893 


586 


101.7 


59.03 


99.9 


.2677 


101.4 


1894 


- 510 


88.4 


58.68 


99.3 


.2611 


99.1 


1895 


541 


93.9 


59.18 


100.2 


.2602 


98.6 


1896 


548 


95.1 


58.93 


99.7 


.2643 


100.1 


1897 


541 


93.9 


58.96 


99.8 


.2604 


98.6 


1898 


635 


110.2 


59.20 


100.2 


.2587 


98.0 


1899 


665 


115.5 


58.98 


99.8 


.2637 


99.9 


1900 


695 


120.7 


58.87 


99.6 


.2685 


101.7 


1901 


753 


130.7 


57.78 


97.8 


.2757 


104.4 


1902 


802 


139.2 


57.17 


96.8 


.2844 


107.7 


1903 


818 


142.5 


56.65 


95.7 


.2962 


111.8 


1904 


776 


130.6 


56.40 


95.5 


.2979 


110.2 


1905 


751 


137.6 


56.77 


98.0 


.3030 


111.7 


1906 


861 


158.4 


56.80 


98.1 


.3130 


114.7 


1907 


804 


147.4 


56.52 


97. S 


.3200 


118.0 



Boilermakers. 
[Data from 97 establishments 1890-1903; 96, 1904; 91. 1905; 



1906; 94, 1907.] 



Average 



1891_ 
1892. 
1893_ 
1894_ 
1895. 
1896. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906- 
1907. 



1,263 
1,336 
1,291 
1,327 
1,280 
1,105 
1,136 
1,236 
1,197 
1,354 
1,369 
1,477 
1,585 
1,624 
1,700 
1,289 
1,182 
1,227 
1,241 



100 

105.8 

102.2 

105.1 

101.3 

87.5 

89.9 

97.9 

94.8 

107.2 

108.4 

116.9 

125.5 

128.6 

134.6 

121.3 

120.9 

130.4 

130.3 



100.0 
101.2 
101.2 
100.6 
99.8 



99.6 
99.2 
98.0 
97.1 
96.3 
96.1 
95.0 
94.8 
95.2 
94.7 



$0.2609 
.2594 
.2577 
.2585 
.2583 
.2614 
.2629 
.2626 
.2607 
.2617 
.2654 
.2773 
.2794 
.2800 
.2848 
.2942 
.3037 
.3135 
.3290 



100.0 

99.4 

98.8 

99.1 

99.0 

100.2 

100.8 

100.7 

99.9 

100.3 

101.7 

106.3 

107.1 

107.3 

109.2 

113.2 

115.4 

118.2 

123.0 



Bricklayers. 
[Data from 212 establishments 1890-1903; 229, 1904; 



1905; 215, 1906; 222, 1907.] 



Average 1890-99— 
1890— 
L891- 
L892_. 
1893.. 
1894. _ 
L895_. 
1896. _ 
1897— 
18)8— 
1899 . 
L900__ 
L901-. 
I'n:! . 
1903__ 
L901__ 
L905_. 
L906__ 
1007— 



355 

122 
892 
967 
535 
055 
841 
998 
010 
L50 
675 
576 
I 12 
781 
064 
644 
365 
idi 
818 



100.0 
101.5 
112.3 
114.1 
104.1 
93.1 
88.2 
91.8 
92.1 
95.3 
107.3 
105.1 
118.1 
100. S 
L16.8 
111.2 
111.8 
124.0 
115.7 



100.0 

103.2 

102.4 

101.2 

100.1 

100.8 

100.0 

99.9 

99.1 

97.9 

95.5 

95. (i 

94.3 

93.6 

92.7 

92,1 

92.0 

91.9 

91.8 



$0.4387 
,4316 
.486') 
.4431 
. 4436 
.4325 
.4367 
.4337 
.4361 
.43:?l 
.4597 
.4672 
. 1012 
.5:51:: 
.5171 

.5917 
.6205 
.6313 



100.0 
OS. 4 
99.5 

101.0 
101.1 

98.6 
99.5 

98.0 
99.4 
OS. 7 
101.8 

io.;. 5 

112.0 
118.0 
124.7 
127.3 
132.1 
138.6 
140.9 



'I'll is b ring's me to the question of arbitration. It goes 
without saying; Unit where an adjustment cannot be reached 
by negotiation, it is far better for the community at large 
that the differences be settled by submission to an impartial 
tribunal and agreement to abide its judgment than to resort 
to a trial of resistance and eiidurnnee b> loekoutM and 
itrikes.— Hon. Wm. H. Tuft, at t'ooper tnioit. \e>v York City. 



210 



EMPLOYMENT, HOURS OF LABOR AND WAGES. 



Carpenters. 

[Data from 227 establishments 1890-1903; 242, 1904; 213, 1905; 216, 1906; 225, 1907.] 



Year. 


Number of 
employees. 


Average hours 
per week. 


Average wages 
per hour. 




Actual. 


Relative. 


Actual. 


Relative. 


Actual. 


Relative. 


Average 1890-99 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 _ 


5,655 
5,923 
6,231 
6,461 
5,528 
5,049 
5,021 
5,413 
5,403 
5.402 
6,120 
6,330 
6,660 
6,906 
6,580 
6,748 
6,652 

7, lies 

7,3^6 


100.0 
104.8 
110.2 
114.3 
97.8 
89.3 
88.8 
9H.7 
95.4 
95.5 
108.2 
112.0 
117.8 
122.1 
116.4 
108.6 
108.3 
121 6 
124.7 


54.85 
55.94 
55.56 
55.12 
55.22 
55.27 
55.05 
54.67 
54.20 
54.02 
53.42 
51.86 
50.74 
19.70 
49.41 
48.99 
48.64 
48.26 
47.87 


100.0 

102.0 

101.3 

100.5 

100.7 

100.7 

100.3 

99.7 

95.4 

98.5 

97.4 

94.5 

92.5 

90.6 

90.2 

89.9 

90.1 

89.7 

8S.9 


$0.2751 
.2713 
.2730 

.2825 
.2744 
.2693 
• .2692 
.2740 
.2748 
.2790 
.2839 
.3049 
.3190 
.3403 
.3594 
.3633 
.3773 
.4047 
.4338 


100.0 
98.6 
99.2 
102.7 
99.7 
97.9 
97.9 
99.6 
100.0 
101.4 
103.2 


1900 

1901 

1902 

1903 

190 t 

190" 

1906 

1907 


110. s 
115.9 
123.7 
130.6 
129.9 
133.6 
141.6 
151.9 



[Data for employees from 91 establishments 1890-1903. Data for hours and 
wages from 91 establishments 1890; 92, 1891, 1892; 93, 1893; 94, 1894; 95, 189") 
1903. Data from 135 establishments 1904; 148, 1905; 149, 1906; 151, 1907.] 



Average 1890-99 


1,148 


100.0 


52.53 


100.0 


$0.3939 


100.0 


1890 


1,508 


131.4 


53.15 


101.2 


.3980 


101.0 


1891 


1,530 


133.3 


52.62 


100.2 


.3997 


101.5 


1892 


1,494 
1,327 


130.1 


52 58 


100 1 


4013 


101 9 


1893 


115.6 


53.13 


101.1 


.3933 


99.8 


1894 . 


1,05) 


91.9 


52.75 


100.4 


.3796 


96.4 


1895 


915 


79.7 


52.73 


100.4 


.3827 


97.2 


1896 


883 


76.9 


52.58 


100.1 


.3897 


98.9 


1897 


928 


80.8 


52.47 


99.9 


.3925 


99.6 


1898 


898 


78.2 


52.06 


99.1 


.3934 


39.9 


1899 


944 


82.2 


51.26 


97.6 


.4086 


103.7 


1900 


969 


84.4 


51.09 


97.3 


.4071 


103.4 


1901 


959 


83.5 


50.37 


95.9 


.4252 


107.9 


1902 ,__. 


954 


83.1 


49.96 


95.1 


.4352 


110.5 


1903 


1,009 


87.9 


49.81 


94.8 


.4467 


113.4 


1904 


1,795 


92.4 


47.23 


93.9 


.4916 


115.6 


1905 j 


2,193 


100.7 


47.42 


93.4 


.5081 


118.3 


1906 


2,205 


108.7 


47.25 


92.8 


. 5120 


120.3 


1907 


2,357 


114.8 


46.92 


92.3 


.5296 


124.1 



Hod carriers. 

[Data from 250 establishments 1890-1903; 262, 1904; 255, 1905; 269, 1906; 311,1907.] 



Average 1890-99 

1890 

1891 

1892 

1893 

1S94 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1901 

1905 .„ 

1!HK>_„„„ 
1907 



4,242 
4,327 
4,644 
4,894 
4,455 
3,698 
3,844 
3,959 
3,996 
3,920 
4,685 
4.417 
5,097 
5,062 
5,242 
4,814 
4,6'8 
6.21)2 
6,090 



10O.0 

102.0 

109.5 

115.4 

105.0 

87.2 

90.6 

93.3 

94.2 

92.4 

110.4 

104.1 

120.2 

119.3 

123.5 

121.3 

428.1 

146.3 

131.1 



51.60 



100.0 
102.3 
101.8 
100.4 
100.1 
100.8 
99.9 
99.7 
99.7 
98.9 
96.5 
96.5 
95.6 
94.1 
93.0 
92.8 
93.0 
92.9 
92.7 



$0.2329 
.2259 
.2248 
.2314 
.2325 
.2303 
.2320 
.2335 
.2322 
.2343 
.2518 
.2498 
.2546 
.2676 
.2863 
.2866 
.2933 
.3192 
.3202 



100.0 

97.0 

96.5 

99.4 

99.8 

98.9 

99. C 

100.3 

99. 

100.6 

108.1 

107.3 

109.3 

114.9 

122.9 

123.8 

124.7 

134.5 

135.9 



An injunction suit does not differ in the slightest degree 
from it suit hrought after the event, so far as the function 
Of the court Is concerned in declaring the law, except that 
the court declares the law in respect of anticipated facts 
rather than in respect of those which have happened. The 
court hjis no authority to make law.— Hon W mi. H. Taft, at 
Cooper luloii, New York City. 



EMPLOYMENT, HOURS OF LABOR AND WAGES. 



211 



Iron molders. 

[Data from 183 establishments 1890-1903; 179, 1904; 169, 1905; 168, 1906; 171, 1907.] 



Year. 



Average 1890-99 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897 
1898. 
1899. 
1900. 
1901. 
1902. 
1903 
1904. 
1905. 
1906. 
1907. 



Number of 
employees. 



Actual. 



2,974 
2,962 
2,952 
3,032 
3,181 
2,519 
2,781 
2,519 
2,781 
3,234 
3,439 
3,790 
3,793 
3,968 
4,218 
3,40S 
3,637 
4,094 
4,354 



Relative. 



100.0 

99.6 

99.3 

102.0 

107.0 

84.7 

93.5 

97.8 

91.9 

108.7 

115.6 

127.4 

127.5 

133.4 

141.8 

116.2 

134.9 

147.6 

154.4 



Average hours 
per week. 



Actual. 



59.31 
59.51 
59.60 
59.49 
59.18 
59.10 
59.29 
59.24 
59.17 
59.34 
59.14 
59.07 
58.47 
57.65 
56.80 
56.13 
56.09 
56.08 
55.74 



Relative. 



100.0 
100.4 
100.5 
100.3 
99.8 
99.7 
100.0 
99.9 
99.8 
100.0 
99.7 
99.6 
98.6 
97.2 
95.8 
95.1 
95.1 
95.1 
94.8 



Average wages 
per hour. 



Actual. 


Relative. 


$0.2526 


100.0 


.2540 


100.6 


.2.565 


101.5 


.2548 


100.9 


.2557 


101.2 


.2472 


97.9 


.2476 


98.0 


.2507 


99.2 


.2525 


100.0 


.2503 


99.1 


.2568 


101.7 


.2694 


106.7 


.2739 


108.4 


.2894 


114.6 


.3036 


120.2 


.3072 


119.5 


.3078 


119,3 


.3217 


123.8 


.3317 


127.0 



Laborers. 
[Data from 146 establishments 1890-1903; 172, 1904; 192, 1905; 193, 1906; 190, 1907.] 



Average 1890-99. 
1890- 
1891_ 
1892_ 
1893- 
1894. 
1895- 
1896. 
1897_ 
1898. 
1899. 
1900. 
1901. 
1902_ 
1903- 
1904- 
1905. 
1906_ 
1907. 



1 GO 
IIS 
861 
812 
516 
128 
796 
018 
000 
rli 
S22 
275 
648 
317 
082 
,042 
,017 
,187 
,366 



100. 
114. 
109. 
107. 
101. 
92. 



101. 
108. 
118. 
104. 
119. 
113. 
96. 
109. 
130. 
137. 



100.0 

100.3 

100.3 

100.3 

100.0 

99.9 

100.1 

100.1 

99.9 

99.3 

99.8 

99.0 

98.5 

96.3 

95.8 

95.8 

95.8 

95.4 

94.9 



$0.1467 
.1507 
.1511 
.1519 
.1493 
.1419 
.1440 
.1415 
.1445 
.1466 
.1457 
.1461 
.1585 
.1644 
.1676 
.1781 
.1867 
.1956 
.2037 



100. 

102.7 

103.0 

103.5 

101.8 

96.7 

98.2 

96.5 

98.5 

99.9 

99.3 

99.6 

1OS.0 

112.0 

114.2 

114.3 

114.4 

122.5 

127.2 



Machinists. 
[Data from 218 establishments 1890-1903; 228, 1904; 



1905; 205, 1906; 209, 1907.] 



Average 1890-99. 
1890. 
1891_ 
1892. 
1893. 
1894. 
1895- 
1896. 
1897. 
1898. 
1899. 
1900- 
1901- 
1902- 
1903- 
1901- 
1905. 
1906- 
1907. 



5,414 
5,302 
5,414 
5,409 



5,677 
4,339 
4,917 
5,176 
5,059 
6,058 
6,793 
7,088 
7,646 
8,221 
8,576 
7,769 
7,539 
7.S19 
8,268 



100.0 
97.9 
100.0 
99.9 
104.9 
80.1 
90.8 
95.6 
93.4 
111.9 
125.5 
130.9 
141.2 
151.8 
158.5 
135.7 
151.0 
169.0 
179.4 



59.12 
59.52 
59.47 
59.24 
59.03 
59.07 
59.08 
59.01 
58.96 
^9.11 
58.72 
5S.56 
57.37 
56.56 
56.12 
55.57 
56.12 
55.98 
55.40 



100.0 

100.7 

100.6 

100.2 

99.8 

99.9 

99.9 

99.8 

99.7 

100.0 

99.3 

99.1 

97.0 

95.7 

94.9 

94.0 

94.5 

94.4 

93.7 



$0.2404 
.2413 
.2435 
.2459 
.2450 
.2347 
.2347 
.2397 
.2397 
.2377 
.2417 
.2485 
.2555 
.2646 
.2709 
.2726 
.2795 
.2922 
.3051 



100.0 
100.5 
101.2 
102.3 
101.9 
97.5 
97.5 
99.6 
99.7 
99.0 
100.8 
103.6 
106.8 
110.3 
112.9 
112.8 
113.1 
116.4 
120.4 



A hiR-her stnndnrd for our judiciary: fewer laws and 
better en foremen t of them; a wider public appreciation of 
the essentials of democracy and of the principles npon which 
this government was founded, will help ns to the solution 
of the problems before ns, und as the very basis and founda- 
tion of our national life, we must conserve those forces 
which insure the etliciency of onr schools and safe-guard 
the purity of our homes.— Hon. George B. Cortelyou. at Ur- 
bana, Illinois, June 7, 1905. 



212 EMPLOYMENT, HOURS OF LABOR AND WAGES. 



Painters. ^ 

[Data from 203 establishments 1890-1903; 208, 1904; 206, 1905; 210, 1906; 211, 1907.} 



Year. 


Number of 
employees. 


Average hours 
per week. 


Average wages 
per hour. 




Actual. Relative. 


Actual. 


Relative. 


Actual. 


Relative. 


Average 1890-99 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 

1907 


3,676 
3,541 
3,708 
3,877 
3,666 
3,450 
3,460 
3,648 
3,737 
3,723 
3,953 
4,089 
4,284 
4,254 
4,021 
4,124 
4,304 
4,. 562 
4,497 


100.0 

96.3 

100.9 

105.5 

99.7 

93.9 

94.1 

99.2 

101.7 

101.3 

107.5 

111.2 

116.5 

115.7 

109.4 

109.9 

111.5 

116.2 

114.4 


53.82 
55.23 

54.86 
54.43 
53.83 
54.01 
53.87 
53.61 
53.28 
62.79 
52.27 
50.91 
49.85' 
49.27 
48.89 
48.43 
48.01 
47.64 
47.45 


100.0 
102.6 
101.9 
101.1 
100.1 
100.4 
100.1 
99.6 
99.0 
98.1 
97.1 
94.6 
92.6 
91.5 
90.8 
90.4 
90.5 
89.7 
89.3 


$0.2763 
.2680 
.2712 
.2747 
.2795 
.2737 
.2720 
.2742 
.2778 
.2827 
.2892 
.3054 
.3170 
.3303 
.3450 
.3543 
.3642 
.3842 
.3967 


100.0 
97.0 
98.2 
99.4 
101.2 
99.1 
98.4 
99.2 
100.5 
102.3 
104.7 
110.5 
114.7 
119.5 
124.9 
127.9 
129.5 
136.8 
142.0 



Plasterers. 

[Data from 146 establishments 1890-1903; 152, 1904; 164, 1905; 166, 1906; 166, 1907.] 



Average 1890-99 



1890 
1891. 
1892. 
1893. 
1894. 
1895 

1897. 
1898. 
1890. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1900. 
1907. 



1,681 
1,684 
1,782 
1,S57 
1,721 
1,547 
1,547 
1,642 
1,587 
1,630 
1,817 
1,875 
1,769 
2,061 
1,895 
1,793 
2,069 
2,286 
2,414 



100.0 

100.2 

106.0 

110.5 

102.4 

92.0 

92.0 

97.7 

'J4.4 

97.0 

108.1 

111.5 

105.2 

120.8 

112.7 

110.5 

123.8 

133.1 

141.1 



51.83 
53.50 
52.67 
52.09 
51.97 
52.01 
51.63 
51.50 
51.96 
51.11 
49.82 
48.75 
48.27 
47.29 
47.04 
46.64 
46 . 56 
46.56 
46.30 



100.0 
103.2 
101.6 
100.5 
100.3 
100.3 
99.6 
99.4 
100.3 
98.6 
96.1 
94.1 
93.1 
91.2 
90.8 
90.5 
99.1 
90.0 
89.6 



$0.3969 
.3648 
.3966 
.4100 
.4019 
.3915 
.3924 
.3985 
.3903 
.3974 
.4254 
.4378 
.4570 
.4916 
.5268 
.5398 
.5.08 
.5977 
.6177 



Plumbers. 
[Data from 221 establishments 1890-190:5: 232, 1901; 207, 1905; 215, 1906; 219, 1907. J 



Average 1890-99.. 
1890- 
1891.. 
1892- . 
1893. . 
1894.. 
1895.. 
1896.. 
1897. . 
1898.. 
1899.. 
1900.. 
1901.. 
1902-. 
1903. . 
1904__ 
1905. . 
L906-. 
1907-. 



100.0 
99.1 
100.3 
103.4 
99.8 
94.4 
94.3 

99H 
104.6 
103.2 
HO. 4 
118.3 
117.9 
115.7 
117.2 
124.5 
139.8 
136.7 



53.23 
54.33 
54.09 
53.86 
53.36 
53.28 
53.08 
52.86 
52.67 
52.53 
52.28 
51.40 
50.77 
49.52 
48.97 
47.98 
47.32 
46.54 
46.51 



100.0 
102.1 
101.6 
101.2 
100.2 
100.1 
99.7 
99.3 
98.9 
98.7 
98.2 
96.6 
95.4 
93.0 
91.9 
91.3 
91.1 
90.2 
90.0 



$0.35.50 
.3464 
.3488 
.3511 
.3552 
.3515 
.3546 
.3505 
.3598 
.3638 
.3684 
.3811 
.3935 
.4122 
.4371 
.4679 
.4912 
.5392 
.5582 



No man is warranted in feeling pride in tlie deeds of the 
Army si ml Navy of the past if he does not back up the Army 
and the Navy of the present.— President Roosevelt at Sher- 
man statue unveiling-, Oct. 15, ll)OJ$. 

Protection has already made us the richest and strongest 
nut ion on earth, and under a properly restricted immigra- 
tion will briiiK to iu much that is most valuable in the pop- 
ulation of other lands.— -Senator Hoar, in the American Econ- 
omist. 



EMPLOYMENT, HOURS OF LABOR AND WAVES. 



213 



Stone cutters, granite. 
[Data from 72 establishments 1890-1903; 83, 1904; 87, 1903; 89, 1906; 99, 1907.] 



Tear. 


Number of 
employees. 


Average hours 
per week. 


Average wages 
per hour. 


Actual. 


Relative. 


Actual. 


Relative. 


Actual. 


Relative. 


Average 1890-99 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 


775 
938 
880 
882 
778 
705 
685 
709 
678 
698 
798 
901 
852 
856 
900 
925 
919 
1,124 
1,158 


100.0 
121.0 
113.5 

113.8 

100.4 

91.0 

88.4 

91.5 

87.5 

90.1 

103.0 

116.3 

109.9 

110.5 

116.1 

109.8 

96.3 

107.1 

107.5 


52.71 
52.73 
52.54 
52.70 
53.12 
52.81 
52.67 
52.77 
52.99 
53.04 
51.70 
50.20 
49.96 
49.67 
48.67 
48.71 
48.65 
47.52 
47.97 


100.0 
100.0 
99.7 
100.0 
100.8 
100.2 
99.9 
100.1 
100.5 
100.6 
98.1 
95.2 
94.8 
94.2 
92.3 
92.2 
92.6 
91.3 
91.1 


$0.3628 
.3730 
.3803 
.3750 
.3618 
.35/3 
.3 ill 
.3590 
.3521 
.3467 
.3594 
.3923 
.3868 
.3938 
. 4225 
.4191 
.4052 
.4329 
.4438 


100.0 
102.5 
104. S 
103.i 

99.,' 
99.9 
9J . 5 
99. U 
97. j 
9.5. , 
91 '• 

108.1 

10. ... 


1903 

1904 

1905 

1906 

1907 


lid. 5 
119.1 
116.7 
121.7 
126 5 













Stone masons. 
[Data from 115 establishments 1890-1903; 110, 1904; 102, 1905; 100, 1906; 9S, 1907.] 



Average 1890-99 
1890. 
1891. 
1892. 
1893. 
1894 
1895 
1836 
1837 
1898 
1899 
" 1900 
1901. 
1902. 
1903 
1901. 
1905. 
1906. 
1907. 



886 
947 
,021 

984 



798 
828 



860 
935 
927 
954 
1,073 
965 
868 
819 
735 



iOO.O 


106.9 


115.2 


111.1 


"01.4 


90.2 


90.1 


93.5 


89.8 


105.2 


07.1 


105.5 


L04.6 


1.07.7 


121.1 


117.7 


116. S 


114.3 


100.9 



53. S3 
51.54 
54.51 
54.49 
54.17 
54.34 
54.05 
53.97 
53 . 05 
52.43 
52.73 
51.89 
51.23 
50.19 
49.54 
49.37 
"7.97 
47.81 
47.57 



100. 
101, 
101. 
101. 
100. 
100, 
100, 
100. 

98, 

97. 

98, 

98. 

95. 

93. 

92. 

91. 

91. 

91. 

90. 



$0 



.3617 

.3722 

.3732 

.3673 

.3644 

.3440 

.3 85 

.3547 

. 3 i2s 

.3581 I 

.3719 

.3788 

.loor 

.4301 
.4486 
.4683 
.4.151 

. 515S 

.5250 



100.0 

102.9 

103.2 

101.5 

100.7 

95.1 

96.1 

98.1 

100.3 

99.0 

102.8 

104.7 

110.8 

119.0 

126.6 

129.4 

129.5 

135.2 

139.7 



Structural iron workers. 

[Data for employees from 19 establishments 1890-1903. Data for hours and 
wages from 19 establishments 1S90-1892; 20, 1893-1903. Data from 37 estab- 
lishments 1904; 59, 1905; 62, 1906; 62, 1907.] 



Average 1890 -99 

L890 

1- '1 

! fc 92 

18)3 

1891 

1895 

L8>6__. 
L897 

L900 

I Ml ._. 

1902 

1901 

I 101 

19)5 

l')"i 

1907 



.561 
436 
551 
602 
554 
416 
446 
648 
628 
685 

o:8 

798 
0(7 
280 
151 
791 
731 
105 
9] l 



115. 
111. 
L22, 
115, 

142, 
195. 
22S. 
200. 
205 
101. 
23 1 . 
216, 



100.0 
102.9 
101.8 
90.3 
100.1 
101.9 
100.1 
98.5 
97.0 
97.8 
100.3 
98; 
96.7 
91.6 
92.2 
90.6 
90.1 
90.9 
91.3 



$1.2643 
.2475 
.2591 
.2058 
.2666 
.2470 
.2581 
.2576 
.2751 
.2784 
.2876 
.3183 
.3659 
.4121 

. a i 5 

.4289 

.4402 

.4730 
.4767 



100.0 
93.6 
98.0 
100.6 
100.9 
93.5 
97.7 
97.5 
104.1 
105.3 
108.8 
120.4 
138.4 
135.9 
159.8 
171.4 
171.8 
L80.4 
190.3 



The following tables show the percentage of increase or 
decrease in the relative number of employees, the relative hours 
of work per week, and the relative wages per hour in the L5 lead- 
ing occupations in 1907, compared with, each preceding year from 
1890 to 1906: 



214 EMPLOYMENT, HOURS OF LABOR AND WAGES 



I I I++ I+++I + I + I I 



HOOlOHi 
I> t-^ CO Ift • 



i 00 CO © CO CO ' 
GO (M ' 



+++++++++++++ I + 



O-*OC0(MlOi 



■*MH^COH! 



<N IV rjt -H -f lO i 



++++++++++++ | | + 



x(iNlOH©NO>ON(5INM'*NCO 

MMONdtOOOHM^'inoON-O^ 
CO NH <N r-l rH 

| ++ | +++++++++ | | + 



OJiniNCOOllOvncOHDlOOtOi 



+++++++++ I ++ I I I 



tCXOOWHaOHOONl 



++ 1 ++++++ 1 +■ 



I + 



HU3HCCOffiHir3-*O<0 00' 



■+ I I + 



-* o •* 



+++++++++++ 



-* co ( 

HOI 
(N CO • 



QCOO)lfit-( 
L-ONWOl 



+++++++++ | + 



© CO < 
LO CO ( 

+ + 



+ + 



• i-H (M O 

<N cr? % 
Tfl CO CO 

++ + 



a h in io a i 

CO <M oi Cl t^ ( 

++ +++ 



+++ 



OHOMMlfiSOJNMlMNHOO'* 

id co' CO doi©N cm t-^ id -i< oo cd j> i>- 

iSMiMMf^WinoOHMCOH 00 
+++++++++++++++ 



OHNCOONHCltD 
NOH^-H-*iPHN' 



+++++++++++++++ 



+ + 



i O CI 00 N H ! 



CM 1« CO 

+ + + 



"* rH 05 LO •* 
+ + + + + 



+ + + 



o co i 

id GO I 






■* <N i— I IN CXI ■"# 
++++ | ++ 



■* K N 1^ O ( 



CO f~ rH CO CO 
+ + + + + 



+ 1 + 



i r~ co •>* co <M 

I r-' Ci 00 00* <N 



lO <N < 

id ci - 



+ + 



+ +_ 

O IN C 



+++++++ | | + 



CO -* lO 

id cxi ©' 



!ONCCMKOin(OC»CC«tO 
" CI N H CO « 

+ + + + + 



+ + + + I + + " 



I I 



. CO lO o 
IN 00 lO 

Hcim 
" I+ + 



OCI»COO 

owcoo'n- 

CM CO rH -t< CO 
+ + + + + 



(M CO CO 

rH id CO* 
rH t~- 

I 1 + 



Si 



f*i+J to « ° H — • r- ^ 



tn o ' 
O — 
83*3 

£=3 



WW 



EMPLOYMENT, HOURS OF LABOR AND WAGES. 215 



•w 


1 


CD 


fl 


%» 


+J 


C 


> 


a, 




s 


cp 


o 




o 


a 


?- 


a 


<s> 





OS 




*H 


r^ 



CO in H O •* (M M l.T N ■* ■* «q o-l N ■* 

© o" o © o" © o" © o" © d ©' ©' © © 
I I I l + l I I I I I I I 1 + 



NHNM(MMMSS00M©N<OI»M 
© doHOOOOOHOHHOH 

II I ! I II I II II I 1 + 



iflcoeor-iooi-(eo©eocNi©-fCM©co 

(NOOHOOdoOHHHHOO 
+ 1 I I I I I I I I II I 1 + 



CO LC O -ti I- m O r. :o )> CO H CO H o 



+ 1 II I I I I I I I I I I I 



ON<BOOlfMOLOH-1i00N«(»M 
HHHHNHIMHNNHMMINO 

+ 1 I I I I I I I I II I II 



mi--050o©c;co-fffloot-©i^«o 
d cm' co <n" eo d d d co co d d -* 10 

II II I I I I I I I I II 



K 


-f 


© en cm 


r: 


X 


tH 


<* 


© 00 00 c 


© 00 


!** 


CO 


-# US -t 


CO 


■* 


■* 


LC 


lO "■*! CO •* lO co 



I I I I I I I I I I II I I I 



0160NIOQO!0:(OOW(MH!SN 

d d co" oo d co' d d id od cd od d t» a 



I I I I I I II 



I I I I I 



^•l(NNOCO(M'*COOHa)-*H© 

>3 d d d © co id d cd d d oo d d co 
I I I II I J I I J I I I I I 



OC0-*00t^©©O©00 1^O"*C00i 

n'lono d d id id d d © d d j> id 

I I I I I I I I I M I I I I 



C5"*r-!00©©T-ICKI(MCO©'*<Ot-00 

ddoodcodiodcodosdddd 

I I M I I I I |7 I I I I I 



^CNOO-^CNKMCNICNlCXlOOGr^OOOOOO 

NinooHNNioinooodoodoo 



I I 



lO(M©l^CMO©©CNIr-(I>i— IHNtH 

i-i d od r-I d od d id d rH ©' © d © d 

i i m i i i i i777 m i 



HHC0N00-*OH(M«)N0.1C0OQ0 

n d oo h n n d d to o d d d d oo 

i i in i i I 1 777 i i i 



l>©C0lOO5t~lO-*lrtt-©l-IC5lC5l-l 

d d d ndt-d d d -4 d d 06 © 00 



I II I I II I 



I I 



TllTtlrdNOON^fflTltOO^tOOCO 
WCOOOlNOllOmOOJHHCOOO 

1 i77 1 1 1 1 i777 1 77 



i^ 'f©oooococo-*o©(M© cr. 000 

ojOHoiconininNcodHMOH 



Mill 



I I I I I 



© 




«5 




5^ 




O 




<» 




te 




*. 







a 


<s> 











c3 


«) 


a 




3 









to ~ 






•all- 



a w B a 



ES 






216 EMPLOYMENT, HOURS OF LABOR AND WAGES. 



ii-^cocm ©<r>oo-*acr-i-«a5e<5»rt 
i rH' ^ co" rH <n eo co co' eo' **' co co >d 



+++++++++++++++ 



m CO* lO CO -* C> CD rH CD OS* OS* CM 00 r- < 



+++++++++++++++ 



T-ii^r~ci-*aococot-©co-»*ic<!r-i© 

+++++++++++++++ 



!0«OC35eO^COK-*<OHr)(0»COH 
IC CM* CM CO Os' ©' 1ft rH CO CO CD OS* 00 O OS 



+ + + + ++ + +" 



+ + + + + 



in© os co co iH 



+++++++++++++++ 



OOOOOHOMNSHOOHOlNHlO 

co' ■* in r-I in «5t! i> o6 cm' co -h co' oo' co iv 

HHNCOHINHHHNCOWHNM 
+++++++++++++++ 



ONMHON'XMMlDOWO'*!-! 

© in ej r- © eo on *- co oo ©'.-oo i -' co ao 



CO CO CM <M <N <M i 



<M -* CO rH CO 1 



+++++++++++++++ 



HOS-*INNNffiHTt(COrHOtO»0> 

as O ■* t^ os" in ■* oo' os' "ft ■** co' i^-' in" •** 

HNM'*H(MffqWHM')<t(NMN 
+++++++++++++++ 



■^ICD0000(Mi-HMC0COO0(N00C0i 



+++++++++++++++ 



INOHOMOHI 
i © rH -** CO J^ OS < 

i -sp in cm co cm cm < 



I CO rH CO CO • 



'+++++++++ 



m in in m © oo 
cm' cm' »n io oo i-i 

■* Ifi Cl tO Cl M 



++++++++ 



as i-i oo in oo -■# <m 

© co co i*- i« cm m 
cm -* in T*< cP -* as 

+++++++ 



rH CM 
+ + 



iNNIO 1 

i m r— in i 

m cm co i 



++++++ 



in CO CO CO rH OS 00 

co -* co oo" i-' -h" r* 
cm ■* in ■* cm -* os 

+++++++ 



i co os oo as m 



+ + 



i os cm ~* cd m in" 

I CO m CM CO CM CM 

++++++ 



cm -* in co os t— co 
oo © co' oo' co ao' oo 

rH CO in -* <N CO 00 

+++++++ 



rH in OS 00 b- OS 00 



+ + 



CO -* CM CO CM CM 
++++++ 



t- OS -* rH CO CD <M 

CD* CM OS © ( ' 

rH -# -* in C 



CM CO 00 
+++++++ 



HOOtOHMOOHinOffllOONMN 
COCOrHCOCM©inCOOS-^-t<i-H©-tl-M 
rHCM^inCNI-^CMCMrHHHininCMCOOs 

+++++++++++++++ 



«* CM 

co" as' 



CM rH OS rH CM OS 

co' -ri CM © CD CO 
-H in <M ■* (M CM 

++++++ 



GO ^H 00 rH rH 00 CO 

os co' in cm co' in co' 

H-*miO(NCOO 

+++++++ 



sS2 



' 08 S3 

! 5 **■& a f-< 
i £; o w m rj 

8 2« 3 S 



£i * ° on o S * i , 

fl S >>hj co tj o fn.2 

■eoSgga 



« o'E 3 © o o « «3«55°h 

PSPQrOOOWftrqafriPMfWcooQOT 



EMPLOYMENT, HOURS OF LABOR AND WAGES. 217 

Explanation. — The figures in these tables give under each 
year the per cent of increase or decrease (indicated by -4- or 
— ) in the number of persons employed, the hours worked per 
week, and the wages paid per hour, which the relative figures 
for 1907' show as compared with those for the year specified. 
For example, under the year 1896 (the last year of Cleveland's 
administration) opposite carpenters there appears -j-30.3 in the 
table showing the per cent of increase or decrease in the num- 
ber of employees, — 10.8 in the one giving the same facts with 
regard to hours of work per week, and -j-52.5 in that relating 
to wages per hour. Thjs means that the number of carpenters 
employed in the establishments covered by the figures was 30.3 
per cent greater in 1907 than in 1896, that their weekly hou'-s 
of work had decreased 10.8 per cent, and that they were paid 
52.5 per cent more per hour in wages. Similar results are shown 
for other occupations. 

These figures show that during the administrations of Presi- 
dents McKinley and Roosevelt there were more persons em- 
ployed in industrial establishments and that fewer hours were 
worked and higher wages were paid than during the period 
of Democratic rule. 

Taking up each occupation separately for discussion, we find 
that there were 55 per cent more blacksmiths employed in the 
establishments considered in 1907 than in 1896, and that the 
w T ages per hour of these blacksmiths were 17.9 per cent higher in 
1907 than in 1896. 

There were 33.1 per cent more boilermakers employed in the 
establishments considered in 1907 than in 1906, and that the wages 
hour of these boilermakers were 22.1 per cent higher. 

There were 26 per cent more bricklayers employed jpi the 
establishments investigated in 1907 than in 1896, and these 
bricklayers received an average of 42.5 per cent more wages 
per hour. 

There were 30.3 per cent more carpenters in the establish- 
ments furnishing data in 1907 than in 1896, and they were paid 
52.5 per cent more wages per hour. 

Compositors were 49.3 per cent more in number and received 
an average of 25.5 per cent more hourly wages. 

Hod carriers increased 40.5 per cent in number and received 
35.5 per cent more wages per hour. 

Iron molders increased 57.9 per cent in number and received 
28 per cent more wages per hour. 

Day laborers increased 52.9 per cent in number and received 

31.8 per cent more wages per hour. 

Machinists -increased 87.7 per cent in number and received 

20.9 per cent more wages per hour. 

Painters increased 15.3 per cent in number and received 43.1 
per cent more wages per hour. 

Plasterers increased 34.2 per cent in number and received 53.8 
per cent more wages per hour. 

Plumbers increased 38.2 per cent in number and received 
47.5 per cent more wages per hour. 

Stone cutters increased 16.1 per cent in number and received 
27.8 per cent more wages per hour. 

Stone masons increased 7.8 per cent in number and received 
42.4 per cent more wages per hour. 

Structural iron workers increased 87.4 per cent in number 
and received 95.2 per cent more in wages per hour. 

If these figures are representative of labor conditions gen- 
erally for the occupations considered, and there is no reason 
why they should not be, thev show the following interesting 
facts : 

Employment. 

For every 100 blacksmiths employed in 1896 there were 155 
blacksmiths €iaployed in 1907; for every 100 boilermakers em- 
ployed in 1896 there were 133 employed in 1907; lor even 100 
bricklayers employed in 1896 there were 126 employed in 1907; 
for every 100 carpenters employed in 1896 there were 130 em- 
ployed in 1907; for every 100 compositors employed in 1896 
there were 149 employed in 1907 ; for every 100 hod carriers 
employed in 1896 there were 140 employed in 1907 ; for every 



218 EMPLOYMENT, HOURS OF LABOR AND WAGES. 

100 iron molders employed in 1896 there were 158 employed in 
1907 ; for every 100 day laborers employed in 1896 there were 
153 employed in 1907 ; for every 100 machinists employed in, 1896 
there were 188 employed in 1907 ; for every 100 painters em- 
ployed in 1896 there were 115 employed in 1907 ; for every 100 
plasterers employed in 1896 there were 134 employed in 1907 ; 
for every 100 plumbers employed in 1896 there were 138 em- 
ployed in 1907 ; for every 100 stone cutters employed in 1896 
there were 116 employed in 1907 ; for every 100 stone masons 
employed in 1896 there were 108 employed in 1907 ; for every 
100 structural iron workers employed in 1896 there were 187 
employed in 1907. 

Wages. 

For every dollar paid to a blacksmith in 1896, $1.18 were 
paid in 1907 for the same amount of labor; for every dollar 
paid to a boilermaker in 1896, $1.22 were paid in 1907 ; for every 
dollar paid to a bricklayer in 1896, $1.42% were paid in 1907 ; 
for every dollar paid to a carpenter in 1896, $1.52% were paid 
in 1907 ; for every dollar paid to a compositor in 1896, $1.25% 
were paid in 1907 ; for every dollar paid to a hod carrier in 
1896, $1.35% were paid in 1907 ; for every dollar paid to an 
iron molder in 1896, $1.28 were paid in 1907 ; for every dollar 
paid to a day laborer in 1896, $1.32 were paid in 1907 ; for 
every dollar paid to a machinist in 1896, $1.21 were paid in 1907 ; 
for every dollar paid to a painter in 1896, $1,43 were paid in 
1907 ; for every dollar paid to plasterer in 1896, $1.54 were paid 
in 1907; for every dollar paid to a plumber in 1896, $1.47% were 
paid in 1907 ; for every dollar paid to a stone cutter in 1896, 
$1.28 were paid in 1907 ; for every dollar paid to a stone mason 
in 1896, $1.42 were paid in 1907 ; for every dollar paid to a 
structural iron worker in 1896, $1.95 were paid in 1907. 

The 15 occupations for which figures have been shown in 
detail are among the great representative occupations that are 
to be found in every section of the country. There are also 
many occupations that are very important in certain particular 
sections of the country. Figures for such additional occupations 
are given in detail in the bulletin of the Bureau of Labor from 
which the figures here quoted are taken, but the limited space 
in this book will not permit a reprint of all occupations. 

In the bulletin named the figures for the several occupations 
of each of the industries represented are also combined to 
form a summary for each industry, thus giving an opportunity 
to study the figures for each industry as a whole. 



What the capitalist, who is the employer of labor, mast 
face is that the organization of labor— the labor anion— is 
a permanent condition in the industrial world. It has cojsiie 
to stay.— Hon. Wm. H. Taft, at Cooper Union, New York City. 

Under existing conditions the blindest coarse that an 
employer of labor can parsae is to decline to recognise 
labor anions as the controlling influence in the labor market 
and to insist upon dealing only with his particular em- 
ployees. — Hon. Wm. H. Taft, at Cooper UnioJi, New Yoi'k City. 

We believe in reciprocity with foreign nations on the 
terms outlined in President McKinley's last speech, which 
urged the extension of our foreign markets by reciprocal 
agreements -whenever they could be made -without injury 
to American indnstry and labor. — President Roosevelt's 
speech accepting 1904 nomination. 

Not only must our labor be protected by the tariff, but it 
should also be protected so far as it is possible from the 
presence in this country of any laborers brought over by 
contract, or of those who, coming freely, yet represent a 
standard of living so depressed that they can undersell our 
men in the labor market and drag them to a lower level.— 
President Roosevelt, in message to Congress, Dec. 3. 1901. 

The farmer of the West has learned and the farmer of the 
South ought to learn that when the factory is closed he not 
only loses customers for his products, but also meets addi- 
tional competitors in his production. The -workman, losing 
his employment in the factory, settles upon a truck farm and 
becomes a prodacer of the prodacts he formerly bought from 
the farmer. The prosperity of the farmer depends upon the 
nrosperity of those -who buy his products. — Hon. P. P. Camp- 
bell, in Congress, April 1, 1904. 



EMPLOYMENT, HOURS OF LABOR AND WAGES. 219 

Summary by Industries. 

The summaries for a few important industries are here 
reproduced, namely, agricultural implements, bakery products 
(bread), building trades, cigars, cotton goods, and bar iron and 
steel. The explanation given of the preceding tables applies tc 
these tables as well. 



Agricultural implements. 





En 


iployees.. 


Hours per week. 


Wage 


s per hour. 






Per cent of 




Per cent of 


Per cent of 






increase (+) 




increase (+) 




increase (+) 


Year. 




o r decrease 




o r decrease 




o r decrease 




(— ) in 1907 


Number. 


' (— ) in 1907 


Relative. 


(— ) in 1907 






as compared 




as compared 




as compared 






with year 




with year 




with year 






specified. 




specified. 




specified . 


1890- 


86.2 


+51.4 


100.3 


— 4.0 


97.1 


+34.8 


1891— 


88.2 


+48.0 


100.3 


— 4.0 


100.8 


+29.9 


1892— 


95.1 


+37.2 


100.3 


— 4.0 


101.6 


+28.8 


1893— 


105.1 


+24.2 


100.3 


— 4.0 


102.5 


+27.7 


1894— 


95.8 


+36.2 


99.2 


— 2.9 


97.3 


+34.5 


1895— 


98.1 


+33.0 


100.3 


— 4.0 


96.4 


+35.8 


1896— 


94.5 


+38.1 


99.9 


— 3.6 


102.0 


+28.3 


1897— 


95.3 


+36.9 


99.0 


— 2.7 


99.4 


+31.7 


1898— 


120.9 


+ 7.9 


100.2 


— 3.9 


101.0 


+29.6 


1899— 


120.6 


+ 8.2 


100.2 


— 3.9 


101.8 


+28.6 


1900— 


130.7 


— 0.2 


100.2 


— 3.9 


105.8 


+23.7 


1901— 


105.9 


+23.2 


100.2 


— 3.9 


107.6 


+21.7 


1902- 


115.8 


+12.7 


100.2 


— 3.9 


112.8 


+16.0' 


1903— 


124. S 


+ 4.6 


. 99.4 


— 3.1 


117.2 


+11.7 


1904- 


108.5 


+20.4 


97.3 


— 1.0 


122.5 


+ 6.9 


1905- 


123.7 


+ 5.5 


97.1 


— 0.8 


124.4 


+ 5.2 


1906— 


133.3 


— 2.1 


96.6 


— 0.3 


129.3 


+ 1.2 


1907 


130.5 




96.3 




130.9 













Bakery products (bread.) 



1890- 


93.3 


+71.1 


100.8 


— 9.1 


99.3 


+29.8 


1891— 


94.6 


+68.7 


100.8 


— 9.1 


99.9 


+29.0' 


1892— 


96.1 


+66.1 


100.9 


— 9.2 


100.3 


+28.5 


1893— 


96.0 


+66.3 


100.5 


— 8.9 


100.2 


+28.6 


1894— 


97.2 


+64.2 


100.4 


— 8.8 


98.4 


+31.0 


1895— 


100.2 


+59.3 


99.9 


— 8.3 


98.7 


+30.6 


1896— 


102.1 


+56.3 


99.6 


— 8.0 


99.6 


+29.4 


1897— 


102.6 


+55.6 


100.2 


— 8.6 


99.8 


+29.2 


1398— 


107.9 


+ 47.9 


99.1 


— 7.6 


100.6 


+28.1 


1899— 


109.8 


+45.4 


97.8 


— 6.3 


103.1 


+25.0 


1900— 


114.0 


+40.0 


96.9 


— 5.5 


106.6 


+20.9 


1901- 


121.0 


+31.9 


96.3 


— 4.9 


108.8 


+18.5 


1902- 


130.4 


+22.4 


95.8 


— 4.4 


113.9 


+ 13.2 


1903— 


133.7 


+ 19.4 


93.9 


— 2.4 


118.9 


+ 8.4 


1904- 


142.6 


+11.9 


93.6 


— 2.1 


121.1 


+ 6.4 


1905- 


148.1 


+ 7.8 


92.5 


— 1.0 


123.5 


' + 4.4 


1906— 


155.6 


+ 2.6 


91.8 


— 0.2 


127.4 


+ 1.2 


1907— 


159.6 




91.6 





128.9 











Building trades. 



1890— 


96.5 


+42.4 


102.5 


—11.6 


97.0 


+ 49.1 


1891— 


100.0 


+37.4 


101.8 


—11.0 


97.9 


+ 47.7 


1892— 


106.8 


+27.7 


100.7 


—10.0 


99.9 


+ 44.7 


1893- 


101.7 


+35.1 


100.5 


— 9.9 


100.0 


+44.6 


1SD4- 


90.2 


+ 52.3 


100.7 


—10.0 


97.6 


+48.2 


1895- 


92.4 


+48.7 


100.3 


— 9.7 


98.4 


+ 47.0 


1896— 


99.2 


+38.5 


99.2 


— 8.7 


99.9 


+ 44.7 


1897- 


99.7 


+37.8 


98.6 


— 8.1 


101.3 


+ 42.7 


1898- 


104.1 


+ 32.0 


98.1 


— 7.6 


102.8 


+40.7 


1899-. 


109.8 


+25.1 


97.5 


— 7.1 


105.3 


+37.3 


1900- 


113.6 


+ 21.0 


95.5 


— 5.1 


109.9 


+ 31.6 


1901 — 


119.8 


+ 14.7 


94.4 


— 4.0 


114.5 


+26.3 


1902- 


126.1 


+ 9.0 


92.6 


— 2.2 


121.1 


+ 19.4 


1903— 


123.2 


+n. r, 


91.8 


— 1.3 


126.8 


+ 14.0 


1904- 


122.5 


+ 12.2 


91.3 


— 0.8 


12917 


+11.5 


1905— 


128.0 


+ 7.3 


91.2 


— 0.7 


132.2 


+ 0.4 


1906— 


140.0 


— 1.9 


90.9 


— 0.3 


1J0.2 


+ 3.1 


1!)07— 


137.4 




90.6 




144.6 













Our opponents, if triumphant, may be trusted to prove 
false to every principle which, during- the last eight years, 
they have laid down as vital. — From President Roosevelt's 
•peech of acceptance, 



220 EMPLOYMENT, HOURS OF LABOR AND WAGES. 



Cigars. 



Tear. 



:<- 10. 

isni 



1893. _ 



1895. 
1897- 
18' .'8_ 
1899. 
1000- 

iwi: 

1902_ 
1903- 
1901- 
1905- 

19061 

1907- 



Ei 


iployees. 

Per cent of 


Hours per week. 


Wages per hour. 






Per cent o i 




Per cent of 




increase ( + ', 




increase ( + ) 




increase (+) 




o r decrease 




o r decrease 






elative 


(— ) in 1907 


Relative 


(— ) in 1907 


Relative. 


(— ) in 1907 


t . uber. 


as compared 


Number. 


as compared 




as compared 




with year 




with year 




with year 




specified. 




specified. 




specified. 


76.0 


+ 53.4 


100.1 


— 0.6 


100.3 


+32.0 


85.2 


+3*6.9 


99.6 


— 0.1 


100.6 


+31.6 


* 3 


+29.1 


99.2 


+ 0.3 


99.6 


+ 32.9 


100 i 


+ L6.0 


99.7 • 


— 0.2 


100.0 


+ 32.4 


. , . 5 


+ 12.7 


99,9 


— 0.4 


99.0 


+ 33.7 


109.9 


+ 6.1 


99.'S 


— 0.3 


97.2 


+ 36.2 


95.2 


+22.5 


100.4 


— 0.9 


98.6 


+ 31.3 


107.4 


+ 8.6 


109.0 


— 0.5 


102.4 


+29.3 


107.7 


+ 8.3 


100.3 


— 0.8 


101.1 


+31.0 


119.9 


— 2.8 


101.0 


— 1.5 


101.3 


+30.7 


93.9 


+21.2 


99.8 


— 0.3 


100.8 


+31.3 


106.1 


+ 9.9 


100.6 


— 1.1 


112.5 


+17.7 


116.0 


+ 0.5 


100.9 


— 1.4 


110.0 


+20.4 


118. S 


— 1.9 


:01.4 


— 1.9 


116.9 


+13.3 


118.1 


— 1.3 


100.4 


— 0.9 


119.0 


+11.3 


123.5 


— 5.6 


100.1 


— 0.6 


120.9 


+ 9.5 


116.6 




99.7 


— 0.2 


131.1 


+ 1.0 


116.6 




99.5 




132.4 













Cotton goods. 



1890— 


87.7 


+39.5 


99.9 


— 3.1 


102.8 


+53.2 


1891— 


98.3 


+24.4 


100.7 


— 3.9 


98.9 


+ 59.3 


1892— 


95.8 


+27.7 


101.2 


— 4.3 


100.3 


+57.0 


1893- 


98.2 


+24.5 


99.9 


— 3.1 


103.6 


+52.0 


1894— 


96.1 


+27.3 


98.6 


— 1.8 


96.9 


+62.5 


1895— 


94.9 


+28.9 


100.0 


— 3.2 


96.9 


+ 62.5 


1896— 


98.8 


+23.8 


99.5 


— 2.7 


101.9 


+50.1 


i89"7— 


10 '.6 


+16.9 


99.4 


— 2.6 


101.2 


+55.6 


1898- 


112.5 


+ 8.7 


100.3 


— 3.5 


97.4 


+ 01.7 


1899— 


112.1 


+ 9.1 


100.4 


— 3.6 


97.3 


+01.9 


1900- 


115.5 


+ 5.9 


100.2 


— 3.4 


109.2 


+ 14.2 


1901— 


109.0 


+ 12.2 


100.0 


— 3.2 


110.4 


+ 42.7 


1902— 


117.2 


+ 1.4 


99.2 


— 2.4 


116.2 


+35.5 


1903— 


107.2 


* +14.1 


99.0 


— 2.2 


123.2 


+27.8 


1904— 


105.3 


+ 16.1 


99.1 


— 2.3 


119.7 


+31.6 


1905— 


104.9 


+ 16.6 


99.1 


— 2.3 


125.5 


+ 25.5 


1906- 


117.5 


+ 4.1 


98.3 


— 1.5 


139.5 


+ 12.9 


1907 _ 


122.3 




96.8 




157.5 

















Iron and s 


teel (bar.) 






1890- 


99.1 


— 0.9 


102.7 


— 4.7 


110.3 


+27.3 


1891- 


98.4 


+ 0.1 


101.6 


— 3.6 


101.9 


+ 33.8 


1892__ 


98.3 


+ 0.2 


101.8 


— 3.8 


100.0 


+ 10.1 


1803- 


105.9 


— 7.0 


101.4 


— 3.5 


95.7 


+ 16.7 


1891- 


100.2 


— 1.7 


101.3 


— 3.4 


90.1 


+ 55.8 


1895- 


103.7 


— 5.0 


100.7 


— 2.8 


91.7 


+53.1 


1896 


93.9 


+ 1.9 


101.0 


— 3.1 


99.3 


+ 11.4 


1897 + - 


97.7 


+ 0.8 


97.1 


+ 0.8 


98.0 


+ 13.3 


1898- 


99.7 


— 1.2 


96.6 


+ 1.3 


96.3 


+ 15.8 


1899- 


101.6 


— 3.1 


£5.9 


+ 2.1 


113.7 


+23.5 


1900 


108.9 


— 9.6 


97.3 


+ 0.6 


IIS. 2 


+ 18.8 


1901— 


100.7 


— 2.2 


98.4 


— 0.5 


119.7 


+17.3 


1902- 


104.1 


— 5.4 ' 


98.8 


— 0.9 


132. 8 


+ 5.7 


1903. 


109.2 


— 9.8 


98.4 


— 0.5 


136.5 


+ 2.9 


1904 _ 


100.2 


— 1.7 


97.9 


__ 


125.6 


+ 11.8 


1905 


103.6 


— 4.9 


98.1 


— 0.2 


126.9 


+10.6 


1906— 
1907- 


97 


+ 1.5 


97.9 




135.7 


+ 3.5 


98.5 


97.9 




140.4 











Taken all in all the preceding figures show that, as far as 
wages and employment are concerned, this country has never 
seen such an era of prosperity as that which was inaugurated 
when industry was enabled to adjust itself to the stable and 
conservative protective policy of a Kepublican administration. 
Never in modm/ times has employment been as secure and 
<<<iirriii, and iicrei- in the history of the country have wages been 
as high as during the past ten years. 



WAGES AXD COST OF LIVING. 221 

WAGES AXD COST OF LIVING. 

Comparison of Day "Wages with Retail Prices in 1896 and 
1907.— A Day's Wages Will Buy More of the Requirements 
of Daily Life Now Than in 189G. — Labor Bureau Figures. 

A working-man's earnings are measured only by their purchas- 
ing power when used in the supplying- of his wants. An in- 
crease in wages is of no real benent to the working-man unless 
that increase enables him to buy more of the necessaries of life 
than before. 

This obvious truth, coupled with the undeniable rise in the 
market price of many articles of family consumption during 
recent years, has caused some persons to doubt the actual profit 
to the wage-earner of the higher rates of wages which have 
accompanied the increased cost of living. 

Let us see what facts are disclosed by a careful and impartial 
study of the question. The United States Bureau of Labor has 
recently conducted a thorough investigation of the retail prices 
t > j" loud in connection with the wages paid in leading occupa- 
tions. The results of this investigation are published in the 
bulletin of the Bureau of Labor for July, 1908, and are 
thus the very latest available data on the subject. The 
price data collected by the Bureau were secured by 
its agents directly from the books of over 1,000 retail mer- 
chants whose patrons largely belong to the class of small con- 
sumers covering actual sales in all parts of the country. The 
figures may, therefore, be considered thoroughly representative 
as well as trustworthy. 

A comparative study of the price figures and those for wages 
given in the preceding article shows that the increased hourly 
wages of bricklayers, carpenters, hod carriers, iron moulders, 
laborers, stone masons, house painters, plasterers, plumbers, 
stone cutters, etc., have not only kept pace with food prices, 
but that their purchasing power, when measured by retail prices 
of food, was greater in 1907 than in any other year of the 
series with the exception of 1906 alone. 

Even if wages and prices had increased in the same propor- 
tion it must not be forgotten that with such higher wages and 
prices the difference between the income and expenditures is 
greater in actual dollars and cents. For instance, if a work- 
ingman earned $800 in 1896 and expended $700 he would have 
saved $100. If in 1907 both the wages and the prices had 
increased 25 per cent his wages would then be $1,000, and his 
expenditures $875, and his savings, in consequence, would be 
$125. As a matter of fact, however, with the exception of 1907 
alone, wage rates in all the leading occupations have increased 
more than prices, and not only have the wage rates increased, 
but those employed have had much more constant employment 
in 1907 than 1896. 

In the Bureau of Labor report the average price of each 
commodity as a whole could not be stated in dollars and cents 
because the articles for which retail prices were shown va r v 
move or less as to kind and quality in different localities. The 
averages have, therefore, been computed on a percentage repre- 
sented as 100, or the base, the prices from year to 3'ear being 
indicated by relative figures. 

These relative figures consist of a series of percentages show- 
ing (lie per cent the price in each year was of the average 
price lor the tcn-veai- period from 1890 to t899. This average 
for the fen-year period was selected as the base because it 
represented the average conditions more nearly than the price 
in any one year which might lie selected as a base for all 
articles. The following table shows the relative price of the 
30 principal articles of food considered in the lhireau of L&bor 
I tilletin. In order to make clear the manner of using the 
relative figures we take, for example, the column showing the 
figures for "'beef, fresh, roasts." It is seen that the price in 
r ;u was 99.5 per cent of the average price for the period from 
L890 to 1899. In 1891 the price was exactly the average price 
lor the ten-year period that is. 100.0. The lowest point reached 
was in L894, when the price was 98.3 per cent of the avera'ge 
price for the ten year period. The highest point reached was 



222 



WAGES AND COST OF LIVING. 



in 1907 when it stood at 119.1, or 19.1 per cent higher than the 
average price for the base period, 1890 to 1899. In 1903, 1904 
and 1905, a considerable decline from the price in 1902 is seen, 
the relative price for the last-named year being 112.2, or 12.2 
per cent higher than the price for the base period. The table 
follows : 



Relative retail prices of the principal articles of food in the 
United States. 1890 to 1901. 

[Average price for 1890-1899=100.0.] 



1891 
1892 
1893 
1894 
1895 
1896 
1897 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1905 
1908 
1907 



ft > 
ft <v 



109.0 

110.3 

99.3 

107.0 

105.8 

97.4 

88.6 

87.8 

95.4 

99.5 

95.2 

96.8 

104.4 

100.8 

99.2 

106.0 

115.6 

124.6 



103.3 

106.2 

102.4 

105.0 

102.8 

100.5 

92.7 

91.5 

95.9 

99.7 

110.0 

113.9 

116.8 

118.1 

116.8 

116.3 

115.2 

118.8 



99.5 
100.0 
99.6 
99.0 
98.3 
98.6 
99.1 
100.3 



101.7 
103.7 
106.5 
110.7 
118.6 
113.1 
112.8 
112.2 
115.7 
119. 1 



99.4 
99.3 
99.6 
98.2 
99.1 
99.5 
100.2 
102.0 
103.9 
106.4 
111.0 
118.5 
112.9 
113.4 
112.9 
116.5 
120.6 



97.5 
98.3 



99.8 
100.9 
102.1 
103.2 
103.7 
106.1 
116.0 
108.8 
108.3 
107.9 
110. S 
114.1 



100.3 

100.3 

100.3 

100.1 

99.9 

99.7 

99.9 

100.0 

99.8 

99.6 

99.7 

99.4 

99.4 

100.2 

103.9 

104.5 

102.3 

104.5 



106.4 

106.8 

109.9 

101.7 

97.0 

92.7 

93.1 

95.1 

97.7 

101.4 

103.2 

111.5 

110.8 

109.0 

112.7 

118.2 

127.6 



o - 

CI tuo a; 

3 



98.8 


101.3 


100.3 


104.0 


101.5 


103.8 


101.8 


104.2 


101.6 


98.6 


99.2 


98.4 


97.9 


97.1 


99.0 


94.0 


97.5 


96.8 


102.4 


101.8 


103.9 


100.8 


103.3 


103.0 


107.3 


113.2 


109.4 


118.5 


107.4 


120.7 


no. 9 


123.6 


115.5 


129.1 


123.2 


131.4 



105.4 
105.2 
103. S 
104.8 
103.3 
101.7 
99.6 
94.6 
91.1 
90.5 
91.1 
90.7 
89.6 
89.3 
91.8 
93.6 
94.7 
95.0 













^ 














« 




"w 


^ 


C3 










'X3 




s 




<t-< 


S3 






^3 




a 
o 


<t-i 


H 


c 


s 


,c" 


>q 


a 


-C . 


& c 


C5 


+s 


£ 


<v 


o 


Sun 








C3 


K 3 


O 


J3 


O 


lM 


D 


m 


&) 


% 


E 


^ 


§ 


m 


g 


fc 


1890 


100.0 


100.6 


99.3 


100.7 


109.7 


98.2 


100.5 


104.7 


100.7 


97.0 


1891 


109.7 


106.9 


99.6 


101.7 


112.5 


99.8 


100.5 


101.7 


100.6 


98.7 


1892 


105.2 


106.8 


100.1 


102.2 


105.1 


103.6 


100.6 


101.2 


101.0 


100.5 


1893 


103.1 


108.1 


100.1 


103.4 


96.1 


117.9 


100.4 


100.6 


99.9 


107.0 


1894 


102.2 


96.3 


100.4 


101.5 


88.7 


106.9 


100.2 


100.3 


97.8 


101.8 


1H95 


100.8 


99.3 


99.8 


98.9 


89.0 


300.1 


100.0 


99.0 


98.7 


99.7 


1890 


95.0 


92.8 


10O.2 


97.5 


92.7 


92.5 


99.9 


98.7 


98.7 


• 97.4 


1897 


93.7 


91.4 


99.8 


95.2 


101.3 


89.8 


99.7 


97.7 


99.6 


97.6 


1898 


95.0 


96.2 


100.5 


98.8 


107.4 


93.9 


99.4 


97.9 


100.4 


98.0 


1899 


95.1 


101.1 


100.2 


100.2 


94.6 


97.1 


98.9 


98.2 


102.6 


101.7 


1900 


97.4 


99.9 


100.4 


99.1 


94.3 


104.4 


99.9 


102.2 


105.6 


107.7 


1901 


107.1 


105.7 


101.4 


100.9 


94.4 


118.1 


101.1 


101.3 


109.0 


117.9 


1902 


118.8 


119.1 


105.0 


102.8 


94.9 


134.3 


103.3 


102.1 


114.7 


128.3 


1903 


120.7 


125.3 


107.3 


108.4 


101.2 


126.7 


105.8 


103.8 


112.6 


127.0 


1904 


121.5 


130.9 


107.9 


111.7 


119.9 


117.3 


106.3 


104.0 


114.1 


124.0 


1905 


122.2 


131.6 


109.9 


113.8 


119.9 


116.6 


107.0 


104.4 


117.8 


120. 6 


1906 


123.2 


134.2 


116.2 


116.8 


108.1 


128.0 


108.9 


105.3 


124.1 


137.7 


1907 


131.6 


137.7 


120.6 


121.6 


117.7 


131.2 


116.8 


107.7 


130.1 


142.5 



This is not and never snail be a government of plu- 
toeracy; it is not and never shall be a government by a mob. 
—President Roosevelt at Butte, Mont., May 27, 1903. 

Our workshops never were so busy, our trade at home 
was never so large, and our foreign trade exceeds that of 
any like period in all our history. — President McKinley at 
Chicago, Oct. 10, 1899. 

The Rate law does not go far enough. T?»e practice under 
it has already disclosed the necessity for new amendments 
and will doubtless suggest more. Such is the true method 
— the empirical and tentative method — of securing proper 
remedies for a new evil. — Hon. Wm. H. Taft, at Columbus, 
Ohio. 



WAGES AND COST OF LIVING. 



223 



Relative retail prices of the principal articles of food in the 
United States, 1890 to 1907— Continued. 





"3 • 




Ha 


s 


















w o <o 




tf.22 


















^u'v 


*§ 






u 

03 






be 


03 


O^ 'S 


OB 


OH 




s 


bfl 


eS 


rt 


a 


H 


Pn 


Pm 


Pm 


Ph 


Ph 


Ph 


CO 




> 


> 


1890 _ _ 


95.8 


95.3 


98.7 


109.3 


116.8 


101.3 


118.6 


100.0 


98.8 


102.9 


1891 


96.6 


98.9 


99.3 


116.6 


116.5 


102.5 


102.7 


100.4 


99.6 


105.5 


1892 


99.1 


100.5 


101.9 


95.7 


113.5 


101.3 


96.2 


100.2 


100.0 


102.7 


1893 


109.0 


108.7 


109.3 


112.3 


115.6 


98.4 


101.5 


100.1 


100.0 


99.5 


1894 


103.6 


103.4 


101.9 


102.6 


100.9 


99.0 


93.8 


98.7 


98.7 


99.8 


1895 


99.4 


99.2 


98.8 


91.8 


94.2 


98.8 


91.8 


98.5 


98.5 


98.9 


1896 . 


96.7 


95.5 


97.6 


77.0 


86.8 


96.7 


96.6 


98.8 


99.5 


97.2 


1897 


97.4 


97.3 


98.2 


93.0 


84.3 


97.9 


95.7 


98.5 


99.9 


97.4 


1898 


100.2 


99.1 


95.1 


105.4 


86.3 


101.7 


101.3 


100.7 


101.2 


97.9 


1899 


102.9 


101.8 


99.2 


96.1 


85.1 


102.4 


101.7 


104.4 


103.7 


98.3 


1900 


109.7 


107.7 


105.3 


93.5 


83.0 


102.4 


104.9 


105.5 


104. 9 


98.5 


1901 


121.0 


117.5 


110.2 


116.8 


82.6 


103.5 


103.0 


106.7 


108.8 


98.9 


1902 


135.6 


132.5 


119.4 


117.0 


83.4 


103.5 


96.0 


107.2 


115.2 


99.5 


1903 


139.8 


129.0 


121.3 


114.8 


80.2 


103.9 


96.1 


106.0 


114.9 


99.1 


1901 


137.9 


125.8 


118.4 


121.3 


79.6 


101.6 


101.9 


105.8 


115.5 


98.9 


1905 


138.8 


126.0 


118.5 


110.2 


81.4 


102.6 


103.9 


105.7 


117.7 


100.3 


1906 


150.4 


136.9 


127.2 


114.4 


85.1 


105.7 


98.2 


105.5 


123.2 


102.6 


1907 


157.3 


141.2 


130.7 


120.6 


88.4 


108.5 


99.6 


105.3 


125.0 


104.5 



The following table shows the relative wages per hour, the 
relative retail -prices of food, and the relative purchasing power 
of hourly wages when measured by retail prices of food, for 
each year from 1890 to 1907. The prices are "weighted" accord- 
ing to the importance of each article in lamily consumption, 
the degree of importance having been determined by a special 
inquiry covering over 2,500 families. In the computation of a 
"simple average" for all food the same importance is given to 
each article, flour, for example, being given the same weight 
as cheese. To overcome the unfairness of such an average, the 
exact quantity of each commodity of food used was ascertained 
and each commodity was then given its proper importance 
as an article of consumption. The result is the "weighted" aver- 
age given. It should be stated in this connection, however, that 
the "weighted" average as shown does not differ materially 
from the simple average. 

Relative wages per hour, retail prices of food, and purchasing 
power of hourly wages, measured oy retail prices of food, 
1890 to 1907. 

[Relative numbers computed on basis of average for 1890-1899=100.0.] 



Year. 


Wages per 
hour. 


Retail prices 
of food 

weighted ac- 
cording to 

family con- 
sumption. 


Purchasing 

power of 

hourly wages 

measured by 

retail prices 

of food. 


1890 -- 


100.3 

100.3 

100.8 

100.9 

97.9 

98.3 

99.7 

99.6 

100.2 

1O2.0 

105.5 

108.0 

112.2 

116.3 

117.0 

118.9 

124.2 

128.8 


102.4 
103.8 
101.9 
104.4 
99.7 
97.8 
95.5 
96.3 
98.7 
99.5 
101.1 
10 5. 2 
110.9 
110.3 
111.7 
112.4 
11'.. 7 
120.6 


97.9 


1891 - - - - 


96.6 


1892 . - 


98.9 


180:; _ . __. _ . 


96.6 


18!) 1 ______ - 


9S.2 


1895 


100 3 


1890 . 


101.4 


1897 --- 


101 l 


1898 -- 


101.5 


1899 . 


io&;6 


1900 

L903 

1902 

1003 


I'M . 4 
102.7 
101.2 
105.4 


1901 __ ___ 


101 7 


1905 _ - - 


105 B 


1906 

1907 


107.3 
106.8 







The method of using the relative figures has already been 
explained. The important facts disclosed by this table arc that 
W&ges per hour and retail prices of food weighted according to 
family consumption were both higher in 1907 than in any other 
year of the eighteen-year period and that tke increase in wages, 



224 WAGES AND COST OF LIVING. 

as compared with the average for 1890 to 1899, was 8.2 pel 
cent greater than the increase in prices of food. As compared 
with 1896, the year of lowest prices, the increase of wages 
was from 99.7 to 128.8, or 29.2 per cent, while the increase in 
food prices was from 99.5 to 120.6, or 26.3 per cent. Again, the 
purchasing power of an hour's wages measured by retail prices 
of food was 104.4 in 1896 and 106.8 in 1907, a difference of 
2.4, or 2.8 per cent, in favor of the latter year. 

The changes in the cost of living, as shown by the bulletin 
of the Bureau of Labor, relate to food alone, representing 42.54 
per cent of all family expenditures in the 2.567 families furnish- 
ing information. With respect to the remaining articles of 
expenditure in the average workingman/s family, a preceding 
number of the bulletin states that they are, from their nature, 
affected only indirectly and in very slight degree by any rise or 
fall in prices. Such are payments on account of principal and 
Interest of mortgage', taxes, property and life insurance, labor 
and other organization fees, religion, charity, books and news- 
papers, amusements and vacations, intoxicating liquors, and sick- 
ness and death. These together constituted 14.51 per cent of 
the family expenditure in 1901 of the 2,567 families investigated. 
Miscellaneous purposes, not reported, for which, from their very 
character, no prices are obtainable, made up 5.87 per cent, and 
rent, for which also no prices for the several years are avail- 
able, made up 12.95 per cent. The remaining classes of family 
expenditure, 24.13 per cent of alb consist of clothing 14.04 pet- 
cent, fuel and lighting 5.25 per cent, furniture anct utensils 3.42 
per cent, and tobacco 1.42 per cent. For these no retail prices 
covering a series of years are available, but it is probable that 
the advance of the retail prices was considerably less than the 
advance in wholesale prices, as the advance in wholesale prices 
of articles of food in 1907. as compared with 1896, was 40.6 per 
cent, while the advance in the retail prices of similar articles 
or groups of articles, as shown by the results of this investiga- 
tion, was but 26 per cent. An examination of the relative whole- 
sale prices of these classes of articles in Bulletin No. 75, giving 
them their proper weight according to family consumption, leads 
to the conclusion that the retail prices of these articles as a 
whole in 1907 could have been but little, if at all, above the 
level indicated for food. 

If all classes of family expenditures as above be taken into 
consideration, it is apparently a safe and conservative conclu- 
sion that the increase in the cost of living as a whole, in 1907, 
when compared with the year of lowest prices, was less 
than 26 per cent, the figures given above as the increase in the 
cost of food as shown by this investigation. It is shown on 
the succeeding pages that the increase in wages in 1901 over the 
year of lowest waves, as shown bv the same bulletin of the 
Bureau of Labor, WAS GREATER THAN THE INCREASE liN 
COST OF LIVING, BEING 31.6 PER CENT. 

"Wages Have Advanced More Than Prices. 

A comparison of the table showing prices with that on 
another page, entitled "Per cent of increase or decrease in 
the relative wages per hour in 15 leading occupations in 1907, 
compared with each preceding year," discloses the following 
interesting facts : 

Bricklayers' wages advanced 42.3 per cent from 1896 to 
1907 ; carpenters' wages, 52.5 per cent ; hod-carriers wages, 
35.5 per cent; iron moulders wages, 28.0 per cent; building la- 
borers' wages, 31.8 per cent; stone masons' wages 42.4 
per cent; painters' wages, 43.1 per cent; plasterers' wages, 53.8 
per cent ; plumbers' wages, 47.5 per cent ; stone cutters' wages, 
27.8 per cent; structural iron workers' wages, 95.2 per cent, 
etc., while during the same period the retail prices of fresh 
beef roasts increased 20.2 per cent ; beef steaks, 21.2 per cent ; 
salt beef, 14.3 per cent; bread, 4.6 per cent; butter, 37.6 per 
cent ; cheese, 25.8 per cent ; coffee decreased 4.6 p^r cent ; fresh 
fish increased 20.4 per cent; salt fish, 24.7 per cent; wheat 
flour, 27.0 per cent; fresh milk, 16.9 per cent; molasses, 9.1 
per cent; rice, 12.2 per cent; sugar, 3.1 per cent, and tea, 6.6 
per cent. All food of ordinary consumption has increased an. 



WAGES AND COST OF LIVING. 225 

average of 26 per cent ; pork products, which are included iu 
this general average, advanced from 33.9 to 62.7 per cent, 
owing- to the high price of hogs, the wholesale price of which 
advanced 77.8 per cent during the same period, as is shown 
in the chapter on the exchange value of farm products. 

By measuring the purchasing power of an hour's wages of 
these various articles of food in 1896 and in 1907. a very in- 
teresting result is obtained. 

In the ease of a bricklayer, it shows that for an hour's 
wages in 1907. as compared with an hour's wages in 1896, he 
could buy 18.5 per cent more beef roasts; 17.5 per cent more 
beef steak; 24.6 per cent more salt beef; 36.2 per cent more 
wheat bread; 3.5 per cent more butter; 13.2 per cent more 
cheese ; 49.4 per cent more coffee ; 18.3 per cent more fresh fish ; 
14.3 per cent more salt fish; 7.4 per cent more wheat flour ; 
30.9 per cent more fresh milk ; 30.6 per cent more molasses ; 
27 per cent more rice; 38.4 per cent more sugar, and 33.7 per 
cent more tea. 

A carpenter could buy for an hour's wages in 1907, as com- 
pared with 1896, 26.9 per cent more beef roasts; 25.8 per cent 
more beef steak; 33.4 per cent more salt beef; 45.8 per cent more 
wheat bread; 10.8 per cent more butter; 21.2 per cent more 
cheese; €9.9 per cent more coffee ; 26. T per cent more fresh 
hsh ; 21.3 per cent more salt fish; 20.1 per cent more wheat 
flour; 30.5 per cent more fresh milk; 39.1 per cent more mo- 
lasses: 35.9 per cent more rice; 47.9 per cent more sugar, and 

43.1 per cent more tea. 

A day laborer could buy for an hour's wages in 1907, as 
compared with 1896, 9.7 per cent more beef roasts : S.7 per 
cent more beef steak ; 15.3 per cent more salt beef ; 26 per 
cent more wheat bread ; 4.7 per cent more cheese ; 38.6 per 
cent more coffee; 9.5 per cent more fresh fish; 5.7 per cent more 
salt fish: 3.7 per cent more wheat flour; 12.7 per cent more 
fresh milk; 20.9 per cent more molasses; 17.5 per cent more 
rice ; 27.9 per cent more sugar, and 23.7 per cent more tea. 

A painter could buy for an hour's wages in 1907. as com- 
pared with 1896, 19.1 per cent more beef roasts ; 18.1 per cent 
more beef steak ; 24.6 per cent more salt beef ; 36.8 per cent 
more wheat bread; 4 per cent more butter; 13.7 per cent more 
cheese ; 49.9 per cent more coffee ; 18.9 per cent more fresh 
fish; 14.6 per cent more salt fish; 12.7 per cent more wheat 
flour; 22.4 per cent more fresh milk; 31.2 per cent more mo- 
lasses; 27.6 per cent more rice; 38.9 per cent more sugar, and 
34.3 per cent more tea. 

An iron moulder could buy for an hour's wages in 1907, as 
compared with 1896, 6.5 per cent more beef roasts; 5.6 per cent 
more beef steak; 12 per cent more salt beef; 2.2 per cent more 
wheat bread ; 1.7 per cent more cheese ; 34.2 per cent more 
coffee ; 6.4 per cent more fresh fish ; 2.7 per cent more salt 
fish ; 0.8 per cent more wheat flour ; 9.5 per cent more fresh milk ; 
17.3 per cent more molasses; 14.1 per cent more rice; 24.2 
per cent more sugar, and 20.4 per cent more tea. 

A plumber could buy for an hour's wages in 1907, as com- 
pared with 1896. 24.8 per cent more beef roasts; 23.7 per cent 
more beef steak; 31.1 per cent more salt beef; 43.3 per cent 
more wheat bread; 9 per cent more butter; 19.2 per cent more 
cheese; 57.3 per cent more coffee; 24.7 per cent more fresh fish; 
20.3 per cent more salt fish; 18.2 per cent more wheat flour; 

38.2 per cent more fresh milk: 37.5 per cent more molasses; 
32.9 per cent more rice; -15.4 per cent more sugar, and 40.8 per 
cent more tea. 

A stone cutter could buy for an hour's wages in 1907, as com- 
pared with 1896, 6.3 per cent more beet* roasts; 5.4 per cent 
more beef steak; 11. S per cent tnore salt beef; 22.1 per cent 
more wheat bread; 1.5 per cent more cheese; 3-1 per cent more 
coffee? 6.2 per cent more fresh fish,; 2.4 per cent mope salt 
fish; 0.6 per cent more wheat flour : 9.;! per cent more Eresh 
milk; 17.1 per cent more molasses; 13.9 per cent more rice; 
23. 9 per cent more sugav, and 19.9 per cent moiv tea. 

A .^toue mason couU buy for an hour's wages in 190.7, as 
compared with L896, 18.6 per cent more beef roasts; 17.5 per 



226 



WAGES AND COST OF LIVING. 



cent more beef steak ; 24.6 per cent more salt beef ; 36 per 
cent more wheat bread ; 3.5 per cent more butter ; 13.2 per cent 
more cheese ; 49.3 per cent more coffee ; 18.3 per cent more 
fresh fish; 14.2 per cent more salt fish; 11.9 per cent more wheat 
flour ; 21.8 per cent more fresh milk ; 30.5 per cent more mo- 
lasses ; 26.9 per cent more rice ; 38.1 per cent more sugar, and 
33.6 per cent more tea. 

A structural iron worker could buy for an hour's wages in 
1907 , as compared with 1896, 62.4 per cent more beef roasts ; 
61 per cent more beef steak ; 70.7 per cent more salt beef ; 
86.6 per cent more wheat bread ; 41.8 per cent more butter ; 
55.6 per cent more cheese ; 104.6 per cent more coffee ; 62.2 per 
cent more fresh fish ; 56.5 per cent more salt fish ; 53.7 per 
cent more wheat flour ; 66.9 per cent more fresh milk ; 80.7 
per cent more molasses ; 74 per cent more rice ; 89.3 per cent 
more sugar, and 82.3 per cent more tea. 

Similar comparisons could be made with many more occu- 
pations, but it is believed that the above, which all relate to 
leading and well-defined occupations, are sufficient to prove the 
fallacy of the assertion that wages have not kept up with 
prices since the great industrial depression during the last Demo- 
cratic administration. 

As a summary of results' of the investigations relative to 
wages and cost of living, the two following tables are given 
in the Bulletin of the Bureau of Labor. The first shows relative 
figures, while the second shows the increase or decrease in the 
year 1907 as compared with each preceding year of the period 
considered. 



Relative employees, Jwurs per week, wages per hour, full-time 
weekly earnings per employee, retail prices of food, and pur- 
chasing power of hourly wages and of full-time weekly earn- 
ings per employee, measured by retail prices of food, 1890 
to 1907. 

[Relative numbers computed on basis of average for 1890-1899=100.0.] 





Employ- 
ees. 


Hours 
per week. 


Wages 
per hour. 


Full-time 

weekly 
earnings 
per em- 
ployee. 


Retail 
prices of 

food, 
weighted 
accord- 
ing to 
family 
consump- 
tion. 


Purchasing power, 
measured by retail 
prices of food, of- 


Tear 


Hourly 
wages. 


Full-time 
weekly 

earnings 
per em- 
ployee. 


1890 


94.8 

97.3 

99.2 

99.4 

94.1 

96.4 

98.6 

100.9 

106.4 

112.1 

115.6 

119.1 

123.6 

126.5 

125.7 

133.6 

142.9 

144.4 


100.7 
100.5 
100.5 
100.3 
99.8 
100.1 
99.8 
99.6 
99.7 
99.2 
98.7 
98.1 
97.3 
96.6 
95.9 
95.9 
95.4 
95.0 


100.3 

100.3 

100.8 

100.9 

97.9 

98.3 

99.7 

99.6 

100.2 

102.0 

105.5 

108.0 

112 2 

116.3 

117.0 

118.9 

124.2 

128.8 


101.0 
100.8 
101.3 
101.2 
97.7 
98.4 
99.5 

99!9 
101.2 
104.1 
105.9 
109.2 
112.3 
112.2 
114.0 
118.5 
122.4 


102.4 

103.8 

101.9 

104.4 

99.7 

97.8 

95.5 

96.3 

98.7 

99.5 

101.1 

105.2 

110.9 

110.3 

111.7 

112.4 

115.7 


97.9 

96.6 

98.9 

96.6 

98.2 

100.5 

104.4 

103.4 

101.5 

102.5 

104.4 

102.7 

101.2 

105.4 

104.7 

105; 8 

107.3 


98 6 


1891 


97 1 


1892 


99 4 


1893 


96.9 


1894 


98.0 


1895 

1896 _. _._ 


100.6 
104 2 


1897 


103.0 


1898 


101.2 


1899 

1900 


101.7 
103.0 


1901 


100.7 


1902 


98.5 


1903 . 


101.8 


1904 


100.4 


1905 

1906 


101.4 
102.4 


1907 


120.6 106.8 


101.5 











Note. — In explanation of relative figures it should be stated 
that each figure in the above table represents the per cent which 
the actual figures were of the average figures for the ten-year 
period from 1890 to 1899, th^ latter being presumed to represent 
normal conditions more accurately than the figures for any 
one year. 

In the first column, for example, the number of employees 
in 1890 is shown to have been 94.8 per cent of the average 
number for the ten-year period; the number in 1894 was 94.1 
per cent of the average for the ten-year period ; the number in 
1907 was 144.4 per cent of the average, or 44.4 per cent greater 
than the average for the ten-year period, etc. 



WAGES AND COST OE LIVING. 



287 



Per cent of increase (-(-) or decrease ( — ) in 1907, as compared 
with previous years, in employees, hours per week, wages per 
hour, full-time weekly earnings per employee, retail prices of 
food, and purchasing power of hourly wages and of full-time 
weekly earnings per employee, measured by retail prices of 
food, 1890 to 1901. 





Per cent of increase (+) or decrease (— ) in 1907 as compared with 
previous years. 


Year. 


Employ- 
ees. 


Hours 
per week 


Wages 
mv hour. 


Full-time 
weekly 

earnings 
per em- 
ployee. 


Retail 
prices of 

food, 
weighted 
accord- 
ing to 
family 
onsump 
tion. 


Purchasing power, 
measured by retail 
prices of food, of— 




Hourly 
wages. 


Full-time 
weekly 

earnings 
per em- 
ployee. 


Average 

1890-1899 _. 
1890 


+ 44.4 
+52.3 
+48.4 
+45.6 
+45.3 
+53.5 
+49.8 
+46.5 
+43.1 
+35.7 
+28.8 
+24.9 
+21.2 
+16.8 
+14.2 
+14.9 
+ 8.1 
+ 1.0 


—5.0 
—5.7 
—5.5 
—5.5 
—5.3 
—4.8 
-5.1 
—4.8 
—4.6 
—4.7 
—4.2 
—3.7 
—3.2 
—2.4 
—1.7 
—0.9 
-0.9 
—0.4 


+28.8 
+28.4 
+28.4 
+27.8 
+27.7 
+31.6 
+31.0 
+29.2 
+29.3 
+28.5 
+26.3 
+22.1 
+19.3 
+14.8 
+10.7 
+10.1 
+ 8.3 
+ 3.7 


+22.4 
+21.2 
+21.4 
+20.8 
+20.9 
+25.3 
+24.4 
+23.0 
+23.4 
+22.5 
+20.9 
+17.6 
+15.6 
+12.1 
+ 9.0 
+ 9.1 
+ 7.4 
+ 3.3 


+20.6 
+17.8 
+16.2 
+18.4 
+15.5 
+21.0 
+23.3 
+26.3 
+25.2 
+22.2 
+21.2 
+19.3 
+14.6 
+ 8.7 
+ 9.3 
+ 8.0 
+ 7.8 
+ 4.2 


+ 6.8 
+ 9.1 
+10.6 
+ 8.0 
+10.6 
+ 8.8 
+ 6.3 
+ 2.3 
+ 3.3 
+ 5.2 
+ 4.2 
+ 2.3 
+ 4.0 
+ 5.5 
+ 1.3 
+ 2.0 
+ 0.9 
— 0.5 


+1.3 
+2.9 


1891 


+4.5 


1892 


+2.1 


1893 

1894 


+4.7 
+3.6 


1895 


+0.9 


1896 _ 


—2.6 


1897 _ 


—1.5 


1898 

1899 


+0.3 
—0.2 


1900 _ 

1901 

1902 


—1.5 

+0.8 
+3.0 


1903 

1904 _._ 


— 0.3 

+.1 .1 


1905 


+0.1 


1906 


—0.9 







Note. — The figures in this table give for each year, and for 
the average of the ten-year period from 1890 to 1899, the per 
cent of increase or decrease (indicated by -f- or — ) which the 
figures for 1907 show as compared with the year specified. 
For example, the first column shows that the number of em- 
ployees in 1907 was 44.4 per cent greater than the average 
number in the ten-year period, 53.5 per cent greater than the 
number in 1894, 1 per cent greater than the number in 1906, 
etc., etc. 



Better Employment, Shorter Working Hours, Higher Wage* 
and Higher Purchasing Power of Wages. 

The foregoing table, which presents the facts in the con- 
venient form of percentages, discloses most important infor- 
mation with reference to conditions in 1907, as compared with 
the period of industrial depression which reached its lowest 
depths during the years 1894, 1895 and 1896. 

First — Employment Afforded — As regards the number of 
employees in the manufacturing and mechanical industries, it 
is seen that over one-half more workmen (53.5 per cent) 
were employed in 1907 than in 1894, and that during the ad- 
ministrations of President McKinley and President Roosevelt 
the number given employment has steadily and rapidly increased 
even up to and including the last year of the period 1907. .And 
even the wonderful increase in 1907 over 1894 as shown above 
does not mark the extreme limit of the betterment of industrial 
conditions as regards employment afforded; for it must be re- 
membered that the various establishments covered in the in- 
vestigation of the Bureau of Labor were practically all in 
operation each year during the entire period and the figures 
secured therefrom do not reflect conditions in the hundreds 
of important establishments which were closed entirely duiinu 
the period of depression. Were figures available showing the 
thousands of workmen thrown into absolute idleness by -the 
closing doion of factories and mills during Democratic rule 
and the thousands given employment during Republican rule, 



»M WAOS38 AND COST OF LIVING. 

Hie per cent of increase in employees at work in 1907 over 
the number shown for 1894 would doubtless be double that 
given by the Bureau of Labor in the table. 

Second — Working Hours — As regards hours of work in the 
establishments covered, it is seen that almost without a halt 
the work-day has gradually been shortened during the period. 
The average hours worked per week in 1907 were 5.7 per cent 
less than in 1890 ; 5.1 per cent less than in 1895 ; 3.7 per cent 
less than in 1900, and .4 per cent less than in 1906. The gen- 
eral betterment of industrial conditions is nowhere better shown 
than in the figures which indicate that slowly but surely the 
hours of labor are decreasing and a consequently longer time 
is afforded the workmen for rest, recreation, and improvement. 

Third — Hourly Wages — The table shows quite conclusively 
the reduction in wages during- the j'ears of depression and the 
gradual and rapid increase year by year since 1896. It is seen 
that the hourly wages in 1907 were 284 per cent higher than 
in 1890; they were in 1907 81.6 per cent higher than in 1894, 
the year of lowest wages; they were 31 per cent higher than 
in 1895, and 29.2 per cent higher than in 1896, etc. It is most 
interesting to note the steady and strong tendency towards 
higher wages during the last ten years, nor should the fact 
be overlooked that the wages of 1901, the last year covered, 
were higher than in any previous year y being 5.7 per cemt higher 
than the year 1906. The figures do not in any way indicate 
that a retrograde movement has begun. 

Fourth— Weekly Earnings per Employee — It has been stated 
that while hourly wages have increased greatly the daily hours 
of work have gradually decreased. While the decrease in hours 
has doubtless been due to the movement of workmen them- 
selves for a shorter work-day, it should be noted also that when 
the decrease in hours per week is taken in connection witii the 
increase in wages the resulting weekly earnings stiU slww a 
marked increase in 1907 over preceding years. For example, 
the weekly earnings in 1907 were 25.3 per cent greater than in 
1894; 244 per cent greater than in $895, etc., etc.._ While the 
increase as shown above is quite considerable, it sbiould be re- 
membered that it does not by any means indicate the conditions 
as to weekly, monthly, or annual earnings in 1907, aus compared 
with the years of depression, inasmuch as the figures given are 
based on the presumption that each employee worked full time. 
While figures are not available showing the extend to which 
establishments worked "half-time" or "tforee-quartw tUme" dur- 
ing the years of depression, or closed down entirety,, it is safe 
to say that were it possible to compare average weekly, monthly, 
or yearly earnings in 1907 with those for 1894, 18SB5, and 1896, 
the per cent of increase in 1907 over the latter years would 
be much greater than that shown in the Bulletin <»f the Bureau 
of Labor. 

Fifth — Retail Prices of Food — As previously indicated, the 
figures given in this column are stated by the Bureau of Labor 
to fairly represent not only the trend of cost Off living so far 
as food is concerned, but also to mark the po ssible limits of 
advance and decline in the cost of all articles of family con- 
sumption. The results are especially importa art as they are 
derived from a most comprehensive investig? *tion into retail 
prices covering a long series of years. Here to fore wholesale 
prices have been used to indicate the trend < »f cost of living, 
although it was recognized that they were ) aiore sensitive to 
conditions than retail prices, that thetLr fluct> nations were con- 
siderably greater, and that they could not b< t used to indicate 
even approximately the extent of inctrease or decrease from 
year to year in the cost of living. The collect ion of retail prices 
which forms the basis of the figures in the table is, therefore, 
of great value as indicating with great exc tctness the cost of 
living based on prices actually paid by the i vmall consumer. It 
is seen that the cost of living increased in 1907 over the year 
of lowest prices, 1896, not more than 26.3 per vent; over 1897, 
25.2 per cent; over 1898, 22.2 per cent; etc. , etc. 

Sixth — Purchasing Power of Wages — Tl «* last two columns 
of the table show the percentages represer iting 1 the purchasing 



WAQttJS AND COST OF LIVING. »29 

power of wages. The first of the two columns shows the facts 
for hourly wages, while the second shows those for weekly 
earnings. Considering the retail prices of food or cost of 
iiving in connection with hourly wages, it is shown that the pur- 
chasing power of hourly wages in 1901 was 10.6 per cent greater 
than in 1898; 8.8 per cent greater than in 1894; 6.8 per cent 
greater than in 1895; 2.3 per cent greater than in 1896, etc., 
etc. .In other words, an hour's wages in 1907 would purchase 
10.6 per cent more .of the commodities and articles entering 
into the cost of living of the workingman's family than would 
an hour's wages in 1898, etc. The last column, which does not 
present so accurate a figure for reasons stated previously in 
connection with weekly earnings confirms the conclusion justified 
by the preceding column that, considering both wages and cost 
of living, the icorkingman has benefited to a measurable degree 
from the increase in wages despite the increase in cost of living 
and shortening of work hours. 

When it is remembered, also, that the betterment of indus- 
trial conditions has been greater than the figures indicate in 
some cases, as previously explained, that it has extended in 
many directions not covered by the figures and not even sus- 
ceptible of demonstration by the statistical method, and that 
the savings of the workman during a period of high wages, 
although accompanied by high prices, is considerably greater 
than during a period of depression, it seems a safe and con- 
servative conclusion that at no time in the history of this or 
any other country has there been an era of prosperity so pro- 
ductive of material benefit to both the workin gman and the 
employer as the last twelve years of Repvblir-an r..V. 



WAGES IW THE UNITED STATES AND IN GREAT BRITAIN. 

A comparison of wage conditions in the United States with 
those of our free-trade neighbor. Great Britain, is interesting. 
It is said that in no country is labor better organized than in 
Great Britain. Organized labor has therefore exerted at least 
as great an influence for higher wages there as it has in this 
country. Industrial conditions, under free trade, have, how- 
ever, made it impossible for employers of labor to pay anything 
like the wages received by American workingmen. 

At the same time that the figures relating to wages in 1903 
were being collected in this country, a special agent of the 
United States Bureau of Labor visited Great Britain for the 
purpose of obtaining wage statistics from the pay rolls of 
British industrial establishments doing business continuously 
during the period from 1890 to 1903, so that statistics might be 
obtained for that country that are entirely comparable with 
those gathered in the United States. 

The following table, which was compiled from the July, 1904, 
Bulletin of the Federal Bureau of Labor, shows the general 
results of this investigation abroad as compared with the figures 
obtained for this country : 



There are more than twenty-live thousand local labor 
unions in the United States, with a membership of more 
than two millions. What infinite good can be accomplished 
by this mighty army of peace and industry if held true to its 
opportunity.— Hon. C. W. Fairbanks, at Kansas City, Mo., 
September 1, 1902. 

You ash me what I think of a provision that no restrain- 
ing order or injunction shall issue except ufter notice to 
the defendant and a hearing- had. This was the rule under 
the Federal statutes for many years, but was subsequently 
abolished. In the class of cases to which you refer I do 
not see any objection to the re-enactment of that Federal 
statute. Indeed, I have taken occasion to say in public 
speeches that the power to issue injunction ex parte has 
given rise to certain abuses and injustice to the laborers 
in a peaceable strike.— Hon. Wm. H. Taft, in correspondence 
with President Llewelyn Lewis, of the Ohio Federation of 
Labor. 



230 



WAGES AND COST OF LIVING. 





"£ 




C3. 2 






<u 


t-c +» 


T3 


PS 


O 


n 


a 

d 
o 


IS 


Sh 


d ^ 


w 


PS 



'OOttlflN 
lOiOJCOCOOO 

r^ r^ i> t~ t~ r- r~ 



t^l'"*COOO-t , C5'*HCO 



c§ <3!co< 



NINNNWIMiMWiMlNIMIMNCO 





+? d 








qj 03 




(-i -U 


•fj 


CD'S 


Ph 


ffl 


o 
O 


Pec 



(N Ol O-l (M N CO (M M !M IM N N W < 



Si 









(Nl i— I OS (Nt CO Oi I 



N N OS G3 O 00 K5 

ooooiQoacjMtoa 

lft!OCHOtOtOtD<OCOCOt>NN 



ONMCOtDNNW-*tOH(MC-lN 
OOOHMOlNOilMMOONiOin© 
Ol Q CS <M CO ■* 



oi o O a i> i 



N N <» N O i 
<N (M <N <N CO ( 






TXgOCOOOcob-r^iniOiCirtOOt 



■9» 

'rt C5 

PS 



- E 



3 ss 
PS 



9 e« 

0"G 



Po<2 



rt 'S 

c*c 



2g 

d rt 

PoD 



MO00MHO-*N-*M00 00l 
©l«r^C5r-<CSC<ltoO>eO<OCOt 

ooNOinffliAin^iioaooox 



cococococococoeo( 



i 55 <n 35 <m oo 



3883 833S&Sga363!£S£ 

-*-H-*mmininmmCO«O00eSr-<C0 

cocococoeoeoeoeocoeoeoco-*-*! 



lOOMWSSL'-lflOONlOlOlONN 






PS 



riffiniMINO'f ' 



CD CO * CO CO 



NNoococoooaaoooffiOo 

,-!,-li-<i-<r-H 1 -lt-l!-Hr-l<Mr~ 



HtDIBNNHHNNNCOH 

".'.l'OCOfflCOaNHHN 
■*-*K>MCOCOMlO!pOiM-« 






'O 0* 



cooiCT>cooc<3iOco»r>oooor^05t^ 

mmmiOlftmcOCOCO«0<0«0«©<0 



i-ieoujiciTH-H<c6«»t-»Ha5in-fO 



mCOr-ICOOlftCOt"-*^ - 






IS eS 



-25 



Pod 



GOOOrHCOCOOi-imt^O©^! 



■*OtHOO00 1ONlON«llN 



■* oo in in ir in in i 



eo 0003 oi 



13 

■3 * 
PS 



NHamoiomiOffli 



ij> 1-1 in- 
! in to 00 ■ 





+a ci 






X3 


QJ 03 


£ 


O'C 


a 


pq 




"^ a* 


n 


d ^ 
Pec 



NHNNr- ie-1CO~HWl>int-.-THC0 
N00NNHO-*O»<000in-<)l!D 
CCHOCOC050CD!D(OiO5O®N00O) 
NNN(MlMIM(M(NINWN(NNIN 



CO OO CO 00 CO 00 I 



: ! 



1 i-l CO CO ■«* >n CO 



NOOOiO? 
Oi C» OS © < 
CO 00 00 05 < 



These statistics show a remarkable difference between wage 
conditions in the United States and in Great Britain. During 
the 14-year period from. 1890 to 1903 the average wage returns 
for each year as shown in the table, range as follows: Black- 
smiths, in the United States, $0.26 to 0.29^, and in Great Britain 
$0.16i^ to 17^ per hour; boilermakers, in the United States, 
$0.26 to $0.28i4 and in Great Britain $0.16 to 0.17^ per hour; 
bricklayers, in the United States, $0.43 to 0.54*4, and in Great 
Britain $0.17^ to 0.20*4 per hour ; carpenters, in the United 
States, $0.27 to 0.36, and in Great Britain $0.17 to $0.2014 per 
hour ; compositors, in the United States, $0.38 to 0.44^4, and in 
Great Britain $0.15*4 to 0.18 per hour; hodcarriers, in the United 
States, $0.22^ to 0.28^, and in Great Britain $0.12 to 0.13 per 
hour ; iron moulders, in the United States, $0.24*4 to 0.30*4, and in 
Great Britain $0.17 to 0.18 per hour; general laborers, in the 
United States, $0.14 to 0.17, and in Great Britain $0.09*4 to 0.10*4 
per hour; machinists, in the United States, $0,231/4 to 0.27, and 



WAGES AND COST OF LIVING. 



231 



In Great Britain $0.15^ to 0. 17 per horn-; house painters, in the 
United States, $0.27 to 0.34^, and in Great Britain $0.15}£ to 
0.17i/£ per hour; plumbers, in the United States, $0.34i^ to 0A3y 2 , 
and in Great Britain $0.17^ to 0.20y 2 per hour; stone cutters, m 
the United States, $0.34^ to 0.42, and in Great Britain $0.17 to 
0.20 per hour ; stone masons, in the United States, $0.34^ to 0.45, 
and in Great Britain $0.17^ to 0.21 per hour. 

The claim is sometimes made that the increased wages in 
this country since the years of depression (1893 to 1897) were 
accompanied by like increases in Great Britain. That this is 
not the case can be shown by examining- the following- table, in 
which the wages in 1896 and in 1903 and the percentage of in- 
crease in the United States and in Great Britain during that 
period are placed side by side : 



Wages in the United States aiid Great Britain in 1896 and 190S. 
[Compiled from Bulletin No. 51, United States Bureau of Labor. J 









Wages 


per hour. 








United States. 


Great Britain. 


Occupation. 






Per 






Per 




1896. 


1903. 


cent 
in- 
crease. 


1896. 


1903. 


cent 
in- 
crease. 


Blacksmiths 


$0.2643 


$0.2962 


12.1 


$0.1716 


$0.1740 


1.4 


Boilermakers 


.2626 


.2848 


8.5 


.1683 


.1719 


2.1 


Bricklayers . 


.4337 


.5471 


26.1 


.1960 


.2062 


5.2 


Carpenters 


.2740 


.3594 


31.2 


.1893 


.2028 


7.1 


Compositors 


.3897 


.4467 


14.6 


.1695 


.1795 


5.9 


Hod carriers 


.2335 


.2863 


22.6 


.1250 


.1250 


0.0 


Iron molders 


.2507 


.3036 


21.1 


.1698 


.1787 


5.9 


Laborers, general 


.1415 


.1676 


18.4 


.0958 


.1019 


6.4 


Machinists 


.2397 


.2709 


12.6 


.1607 


.1677 


4.4 


Painters, house. _ 


.2742 


.3450 


26.5 


.1656 


.1774 


7.1 


Plumbers 


.3505 


.4371 


25.8 


.1926 


.2027 


5.2 


Stone cutters 


.3590 


.4225 


24.7 


.1893 


.1994 


5.3 


Stone masons 


.3547 


.4486 


17.7 


.1977 


.2078 


5.1 



The tendency of wages in all industrial countries is to increase 
gradually from year to year except at times of industrial depres- 
sion, and while such a normal increase is noticeable in the figures 
for Great Britain from 1896 to 1903, the figures for the United 
States during this period plainly show that the increase here 
has been phenomenal. Thus, while from 1896 to 1903 the wages 
of blacksmiths increased 1.4 per cent in Great Britain they in- 
creased 12.1 per cent in the United States ; the wages of boiler 
makers increased 2.1 per cent in Great Britain and 8.5 per cent 
in the United States ; the wages of bricklayers increased 5.2 
per cent in Great Britain and 26.1 per cent in the United States; 
the wages of carpenters increased 7.1 per cent in Great Britain 
and 31.2 per cent in the United States; the wages of compositors 
increased 5.9 per cent in Great Britain and 14.6 per cent in the 
United States ; the wages of hod carriers showed no change in 
Great Britain and increased 22.6 per cent in the United States ; 
the wages of iron moulders increased 5.9 per cent in Great 
Britain and 21.1 per cent in the United States; the wages of 
general laborers increased 6.4 per cent in Great Britain and 
18.4 per cent in the United States ; the wages of machinists 
increased 4.4 per cent in Great Britain and 12.6 per cent in 
the United States; the wages of house painters increased 7.1 
per cent in Great Britain and 26.5 per cent in the United States ; 
the wages of plumbers increased 5.2 per cent in Great Britain 
and 25.8 per cent in the United States ; the wages of stone 
cutters increased 5.3 per cent in Great Britain and 24.7 per 
cent in the United States ; and the wages of stone masons 
increased 5.1 per cent in Great Britain, while they increased 
17.7 per cent in the United States. 

Thus, while the percentage of increase in these 18 occupations 
ranged from 0.0 to 7.1 per cent in Great Britain, it ranged from 
8.5 per cent to 81.2 per cent in the United States. 

More recent figures showing the difference in wages in this 
country and in Great Britain are contained in the two follow- 



£32 



WAGES AND COST OF LIVING. 



ing tables. The data for the United States are taken from the 
July, 1907, Bulletin of the Federal Bureau of Labor, and rep- 
resent the average wages per hour and hours of work per week 
in the occupations and cities specified. The figures for the three 
cities of Great Britain are found in a report published by the 
British Board of Trade, Labor Department, in November, 1906, 
and are the standard wage rate per hour and hours of labor 
per week observed in the several localities at the date mentioned. 
All of the six occupations for which the facts are shown belong 
to the building trades. 



Average wages per hour and hours of labor per week in three 
representative American cities in 1906. 

[Compiled from Bulletin No. 71, United States Bureau of Labor.] 





Average 


wages per hour. 


Average hours per week. 


Occupation. 


New 
York. 


Balti- 
more. 


Chi- 
cago. 


New 
York. 


Balti- 
more. 


Chi- 
cago. 




$0.7000 
.5746 
.2097 
.4695 
.6875 
.5945 


$0.6365 
.4085 
.1802 
.3750 
.6250 
.4094 


$0.6265 
.5500 
.2939 
.4811 
.6875 
.5625 


44.00 

44.00 
50.38 
44.10 
44.00 
44.00 


48.00 

48.00 
53.66 
48.00 
48.00 
48.00 


45.24 




14. 08 




50. M 




44.00 


Plasterers 


I , . 00 
44.00 







Standard wages per hour and hours of labor per week in three 
representative cities of Great Britain on October 1, 1906. 

[Compiled from Standard Time Rates of Wages in the United Kingdom at 
1st October, 1906— Board of Trade (Labour Department).] 





Standard wages per hour. 


Standard hours per week. 


Occupation. 


Lon- 
don. 

$0.2129 
.2129 
.1419 
.1825 
.2230 
.2230 


Man- 
chester. 


Glas- 
gow. 


Lon- 
don. 


Man- 
chester. 


Glas- 
gow. 




$0.2027 
.1926 
.1216 
.1774 
.2027 
.1926 


$0.1926 
.1926 
.1216 
.1825 
.1926 
.1825 


50.00 
50.00 
50.00 
50.00 
50.00 
50.00 


54.50 
49.50 
52.00 
52.00 
62.00 
49.50 






51.00 


Ca L'ueuteSs 

Laborers 


51.00 
51.00 
51.00 




51.00 




51.00 







The New York Journal of Commerce (Democratic) recently 
printed a table giving in the currency of the United States the 
average wages paid per hour for 12 classes of labor in the United 
States as compared with certain European countries in the cal- 
endar year 1903. The table was compiled from a bulletin issued a 
short time ago by the Bureau of Labor at Washington, in which 
the average rate of wages paid in each year from 1890 to 1903 
inclusive for twelve classes of employment are given in detail 
for the countries named above. 



Occupation. 


United States. 


Great Britain, 


Blacksmiths 

Boiler. nakers 

Brick •■ryers ' 


$0.2951 
.2848 
.5472 
.3594 
.4487 
.2883 
.3036 
.1675 
.2707 
.4429 
.3450 
.4579 


$0.17)0 

.20.0 
2028 




. 1795 


Hod carriers _____ _____ _ _ 


.nso 




1787 


General laborers __ . _. 


1019 




1677 




2027 




1774 




.2078 




Wages per hour for 12 classes 


4.2071 


2.0954 



RAILWAY LABOR. 



233 



r a AIL WAY LABOR DURING REPUBLICAN AND DEMOCRATIC 
ADMINISTRATIONS. 

There is no better index to the industrial condition of a coun- 
try than the amount of business done by the railways, and as 
1 the "railways in this country employ over one and one-half 
million persons, the increase or decrease in traffic materially 
a-tefects a large proportion of the population. 

rjjuring- the fiscal year ending June 30, 1896 (Cleveland's Ad- 
Em&nistration), there were 826,620 railway employees in the 
I Cnited States, receiving a total yearly compensation of $408,- 
■824;531. In 1907, there were 1,672,074 railway employees re- 
ceiving $1,072,386,427. This shows an increase in 12 years of 
845,454 railway employees and of over five hundred million dol- 
lars in aggregate salaries and wages. In other words, more 
than twice as many persons were employed by the railways 
in the United States on June 30, 1907, than on June 30, 1896, 
when the Democratic party was in power, and more than twice 
as much Hvas paid in wages and salaries. 

The following table shows the number of railway employees 
and the total and average salaries and wages paid in each class 
-in -18 Of. and 1907 : 



«0 55 






to <^ 

© OS 

to Go 

r§-s 



JO OS 



* to 
to g 

* .5 

I 5 



5 § 
SI 



2: « 



.22 I 

a 
s 

o 

o 



> © 1 



m- 


lrt(M 


<N rH •<* 


NOTN jq(NN 


rH r-t 


HMIMH 


H01NN<0!000«NO* 
OTlftC<irHrHeO(NC<il-I(N(MrH 


rH rH 


1.74 
1.93 
1.94 
1.65 






?1 . 



1 <«ioai 

>(N CO CO' 



t-- co in 1 

•* «3 (M ' 



IC 



HNOHHUOHtNOOlCNHCOCOTfUKlCH 

t^ in oq th -t; j^Tcj 150 <o 05 e^tp in ga 05" co" 05 



HHTfMOOOOlOlOffl^^MNI 



S 1 s 



!O'HH'(O0)(N00NNHOlOH» 



N-0055QOHiaiNH(H'eHN'*COft'Oi 
0^O-»IMClM(bin-IlffiL-5!NHQMIM 
H/ IP N O © W M 00 (M M M (D M N -d H H K 

fflsriflinNinaooHH'inoHHNM cTcToo 

OMlC«5COH<coiOI'-(M'*tpu3M CN 
r-i rH <N CO (M 



HlOtOlftClNHrlNtO* 
(ft «5 N •* 00 IN 00 ffl M (O IM 



CMft 10 (O lO 



<m cn r— co co r>\ o Si co -5 co So -* (M 



?00lOOSHiHlI5( 



£ IS 
till 

y ° ° rt 



:b§ 



a c 



00(Sm 



L, 

lyjO 



5t,-2$t,OHo tr n 5 — 

SS-JjSgJIfl'IS'SBr-: 

ooaoo*o» 



234 



REPORTS OF STATE LABOR BUREAUS. 



REPORTS OF STATE LABOR BUREAUS. 

A number of State labor bureaus publish from year to year 
information showing, among other things, the number of per- 
son:^ emploj^ed jn leading industries, the total and average wages 
paid employees, the value of products, etc. Unfortunately in 
many cases these annual statistics are not comparable, one year 
with another, because they do not relate to identical establish- 
ments or industries. As far as recent comparable figures were 
obtainable from State labor reports they are shown below. They 
include in all cases the latest available figures. 

Massachusetts Labor Reports. 

The annual statistics of manufactures in Massachusetts, pub- 
lished by the Massachustetts Bureau of Statistics of Labor, pre- 
sent reports from a large number of manufacturing establish- 
ments in the State, and each year compare conditions with the 
previous year, in the same establishments. 

The following table compiled from the Massachusetts reports 
shows the percentage of increase or decrease each year over the 
year preceding in the same establishments, in the number of per- 
sons employed, the average yearly earnings per employee, and 
the value of goods made and work done : 



Percentage of increase or decrease in the number of employees, 
average earnings per employee, and value of goods made and 
work done in manufacturing establishments. 

[Compiled from the "Annual Statistics of Manufactures in Massachusetts," 
published by the Massachusetts Bureau of Statistics of Labor.] 







Perso 
plo 


as em- 
yed. 


Average yearly 
earnings per 
employee. % 


Value of goods 

made and work 

done. 




Number 

of es- 
tablish- 
ments 
report- 
ing. 








Years 
compared. 


Per cent 
of in- 
crease 
as com- 
pared 
with 
previous 
year. 


Per cent 
of de- 
crease 

as com- 
pared 
with 

previous 
year. 


Per cent 
of in- 
crease 

as com- 
pared 
with 

previous 
year. 


Per cent 
of de- 
crease 
as com- 
pared 
with 
previous 
year. 


Per cent 
of In- 
crease 

as com- 
pared 
with 

previous 
year. 


Per cent 
of de- 
crease 

as com- 
pared 
with 

prevlout 
year. 


1888-1889 


1,364 
3,041 
3,745 
4,473 
4,397 
4,093 
3,629 
4,609 
4,695 
4,701 
4,740 
4,645 
4,696 
4,658 
4,673 
4,730 
5,010 
5,055 


0.S9 
2.70 
1.72 
4.53 




1.45 
1.58 
0.91 
1.51 


,,,,-, 


2.45 
4.37 
1.33 
5.37 




1889 1890 






1890 1891 








1891 1892 








1892 1893 


4.26 
6.22 


3.64 
3.28 


8.10 


1893 1894 






10.27 


1894-1895 - _ 


9.02 


2.19 


9.18 




1S9 5-1890 


2.94 


.05 
1.16 
0.18 


5.51 


i896 1897 


2.72 
1.80 
9.58 
3.77 
3.60 
6.46 
3.25 




3.04 
4.62 
15.59 
8.51 
5.36 
8.66 
4.66 




1897-1898 __] 








18D8 1899 




1.86 
2.80 
1.82 
2.29 

2.28 




1819 1900 








1900-1901. 









1901-1902 






1902-1903 








1903-1904 _ 


2.73 


0.87 


0.90 


190t-1905 _ 


7.66 
6.97 


1.02 
3.75 


10.55 
12.12 




1905-1900—. 

















New Jersey Labor Reports. 

The thirtieth annual report of the Bureau of Statistics of La- 
bor and Industries of New Jersey contains data relating to the 
wages paid and hours of labor observed in a number of identical 
establishments engaged in the building industry in Essex county 
for a period of years. This information, while lacking for sev- 
eral of the years included in the period covered, is nevertheless 
sufficient to indicate very clearly the decidedly upward trend of 
wages and the decreasing working hours in these establishments, 
which were selected as being representative of their class. The 
following tables present the facts : 



REPORTS OF STATE LABOR BUREAUS. 



235 



Wage's and hours of labor in identical establishments in the 
building industry in Essex county, N. J., by years. 

[From the Thirtieth Annual Report of the Bureau of Statistics of Labor and 

Industries of New Jersey. J 

Painters, decorators, and pa per I) angers. 





Wa 


ges. 


Hours of labor. 


Year. 


Per hour. 


Per week. 


Per day. 


Per week. 


1896 


$0.25 
.28 
.31% 
.34 
.37% 
.41 


$13.50 
13.. 30 
15.00 
16.50 
18.00 
18.04 


9 
8 
8 
8 
8 
8 


54 


1897 


18 


1898 


48 


woo -____ _ __ _. 


4S 


190$ _. 


48 


1906 


•11 









Carpenters 














1891 

9 

$2.50 


1896 

9 

$3.00 


1897 

8 

$3.00 


1903 

8 

$3.28 


1905 

8 

$3.60 


1906 




8 




$3.80 







Bricklayers 


s and masons. 








Wages. 


Hours of labor. 


Year. 


Per hour. 


Per week. 


Per day. 


Per week. 


1890 _'_._ 


$0.33y 3 

.4iy 2 

.50 
.55 
.60 
.65 


$18.00 
24.00 
24.00 
24.20 
26.40 
28.60 


9 
8 
8 
8 
8 
8 


54 


1896 


54 


1901 


48 


1903_ __. 


44 


1905— _ 


44 


1906 


44 







New York Labor Reports. 

Since 1897 the New York Bureau of Labor Statistics has col- 
lected data concerning- the actual earnings of wage-workers 
through the officers of working-men's organizations, reaching in 
this way thousands of wage-earners where few could have been 
reached by means of individual schedules. 

The New York statistics are based on quarterly reports col-| 
lected twice a year and thus cover one-half of each year. The 
following table shows the average earnings, with per cent of m* 
crease over 1897, and the average days of employment of organ- 
ized workingmen for each of the years 1897 to 1906 : 

Average earnings of organized worMngmen, 1897-1906. 

[Compiled from the Twenty-fourth Annual Report of the Bureau of Labor 
Statistics of New York.] 





Average 


Average 




quarterly 


earnings 


Year. 


earnings. 


per day. 


(First 


(First 




and third 


and third 




quarters.) 


quarters.) 


1897 


$162.50 


$2.56 


1898 


169.49 


2.66 


1899 _ 


186.63 


2.73 


1900 


179.11 


2.70 


1901 


189.05 


2.75 


1:M)2.__ 


191.33 


2.75 


!•'<,:: 


188.28 


2.73 


1904 


186.20 


2.76 


190") 


203.77 


2.92 


1906 


218.96 


3.07 



Estimated 
average 
for year. 



$6i0.00 
67S.0O 
747.00 
716.00 
756.00 
765.00 
753. 00 
745.00 
815.00 
876.00 



Per cent, 
of increase 
over 1697. 



Average 
days of 
emp oy- 

in en t 
In year. 



4.31 


232 


14.92 




10.15 


246 


16.31 


260 


17.69 


264 


15.85 


256 


14.62 


256 


2b. 38 


272 


34.77 


278 



The report from which the foregoing table was compiled 
stales that "in 1897 the average wage for a day of work among 
organized wage-earners was $2.53 or, taking the first and third 
quarters alone, $2.56. In 1906, in the first and third quarters, the 
average per diem earnings of all members employed was $3.07. 
In the ten years there had consequently been an average increase 
of 51 cents a day, which is almost exactly equivalent to 20 per 
cent. This result, which is based on actual earnings, is probably 
a close approximation to the general movement of wuyes in New 



286 



REPORTS OF STATE LABOR BUREAUS. 



York in the past decade. The returns on which the statistics are 
based include nearly all occupations, except agricultural labor 
and domestic service, and there is little question that both of 
these classes of workers have gained similar advances." 

The following table, whieh is taken from the same source, 
gives the percentage of working time in which organized work- 
ingmen and women Were employed and idle : 

Percentage of working time in which organized workingmen and 
women were employed and idle, 1897-1906. 



Year. 


Employed. 


Idle. 


18^7 . _ 


73.8 
75.3 
88.6 
80.0 

84.4 
85.7 
83.1 
83.8 
88.8 
90.3 


26.2 


1898. _ — 


24.7 


1899 _ 


16.4 


1900 _ - - 


20.9 


1901 -_ — 


15.6 


1902. ___ _. . 


14.8. 


1903 


16.9 


1904 ._ . _ 


16,2 


1905 


11.7 


1906 


9.7 



J.. I 
9.7 

L898 

heir 



In 1897, when recovery from the industrial depression of 1801 
was just beginning, wage-workers lost fully one-fourth of theii 
income through unemployment of one kind or another. As the 
industrial revival gained headway the percentage of idleness 
decreased, with slight relapses in 1900, 1903, and 1904, when large 
numbers of the organized workmen were involved in labor dis- 
putes. 

The following table, which is also compiled from the twenty- 
fourth annual report of the Bureau of Labor Statistics, shows 
the average earnings per day of organized workingmen for each 
of the years 1897 and 1902 to 1906, inclusive, in forty selected 
occupations : 

Average earnings of organised workingmen for each day of work 
in third quarter 1897 and 1902-1906; men only. 



Occupation. 


Num- 
ber 
report- 
ing. 


1897 


1902 


1908 


1904 


1006 


1906 




3,360 

2,289 
3,734 
1,694 
2,293 
2,492 
6.816 

12,881 
2,287 
2,267 

28,904 
7,743 
1,639 
2,518 
8,384 
2,332 
4,834 
4,137 
4,114 

18,141 
2,403 
7,266 
2,175 
2,172 
2,153 
7,641 

13,279 
1,401 

2,284 
6,161 
5,881 
3,131 
4,018 
7,342 
4,446 
3,033 
1,937 
1,966 
2,470 
6,638 


$2.01 
1.71 
1.87 
2.63 
2.92 
1.94 
2.45 
3.81 
2.19 
2.46 
3.03 
1.56 
2.1S 
1.86 
3.40 
2.90 
2.61 
3.64 
2.16 
2.38 
2.48 
2.56 
1.72 
3.00 
3.41 
2.24 
3.25 
1.42 

1.70 
3.32 
3.49 
3.43 
3.15 
3.00 
2.34 
3.74 
2.33 
1.81 
2.09 
1.96 


$2.29 
1.81 
1.97 
2.74 
3.06 
1.97 
2.69. 
4.65 
2.27 
3.13 
3.10 
1.89 
2.04 
2.32 
3.39 
3.13 
2.78 
3.83 
2.29 
2.82 
3.71 
3.06 
2.27 
3.79 
3.76 
2.70 
3.22 
2.31 

2.58 
4.81 
3.67 
8.07 
3.35 
2.85 
2.13 
3.85 
3.82 
1.96. 
2.19 
2.12 


$2.80 

1.83 
2.11 
2.85 
3.00 
2.12 
2.61 
4.55 
2.89 
3.15 
3.27 
1.92 
2.10 
2.40 
3.4S 
3.18 
3.34 
3.73 
2.43 
2.75 
4.32 
3.00 
2.27 
3.44 
3.77 
2.09 
3.84 
2.63 

2.69 

5.29 
3.72 
3.21 
3.24 
2.92 
2.17 
4.11 
3.91 
2.00 
2.38 
2.24 


$2.40 
1.94 
2.16 
2.89 
3.02 
2.16 
2.66 
4.73 
2.36 
3.35 
3.30 
1.90 
2.19 
2.44 
3.53 
3.23 
2.89 
3.77 
2.53 
2.75 
4.36 
2.98 
2.15 
4.38 
4.09 
2.79 
3.37 
2.13 

2.61 
5*31 
3.79 
8.18 
3.56 
3.27 
2.07 
4.23 
3.95 
1.91 
2.46 
2.26 


$2.44 
1.93 
2.22 
2.76 
8.07 
2.19 
2.68 
5.11 
2.45 
3.40 
3.45 
2.01 
2.24 
2.14 
3.52 
3.37 
2.92 
3.94 
2.53 
2.87 
4.38 
3.-04 
2.15 
4.92 
3.87 
2.86 
3.47 
2.49 

2.54 
5.46 
4.34 
3.40 
3.63 
3.21 
2.31 
4.35 
4.13 
2.11 
2.66 
2.29 


$2.60 


Barbers 


2.07 
2.27 


Boilermakers and iron-ship builders 


2.95 
3.12 




2.42 


Brewery workmen 

Bricklayers and masons 


2.67 
5.06 
2.62 




3.53 


Carpenters and joiners '— 


3.76 
1.98 




2.26 




2.41 




3.55 


Conductors, railway 


3^20 




3.92 


Firemen, locomotive 


2.66 
2.99 


Housesmiths and bridgemen 


4.28 
3.22 


Jacket makers 


2.18 
4.70 


Lithographers 

Machinists 

Painters and decorator!- 

Pants makers -- 

Piano and organ workers (ail 


4.01 
3.02 
3.45 
2.34 

2.51 
5.58 




Plumbers and gas fitters 

Pressmen 

Roofers, sheet metal wor! - 


4.21 
3.50 
4.05 
3.37 


Stationary firemen 


3.06 
4.49 


Stone masons 

Street railway employee. 


4.29 
2.11 
2.44 


Trainmen 


2.48 



REPORTS OF STATE LABOR BUREAUS. 



237 



Pennsylvania Labor Reports. 

The secretary of internal affairs of the State of Pennsylvania, 
in his report for 1905, publishes a series of tables showing com- 
parative statistics in 710 identical establishments for the years 
1896 to 1905. The following table has been compiled from this 
report : 

Comparative statistics of 110 identical manufacturing establish- 
ments, 1896 to 1905. 



[Compiled from the 


Thirty-third 


Annual 


Report 


of the 


Bureau of Industrial 






Statistics of Pennsylvania.] 








Average per- 
sons employed 


Aggregate wages 
paid. 


Average yea i-ly 

earnings per 

employee. 


Value of product. 






isl 




•n Sao 




is! 




= =? 






•sSS 












-- 






7- • - 


Amount. 






00 ii 


Amount. 






,a 


<5 ©- 




g^-o 




® K-3 




S --- 


u 


c 


° S? 




e8g 


o 


« ,5 Q 




- SJ? 


1 
© 


£ 


u <u s 




*-, O. ?2 
® *-> 2 


< 


»H » 2 

0) — ~ 




i- - 5 


1896- 


122,138 
127,461 




$46,736,124 




$382.65 




$169, 806, i 501 




1897- 


4.4 


47,852,604 


2.4 


375.43 


al.9 


182,572.176 


7.5 


1898— 


141,819 


16.1 


81, 312,659 


22.6 


404.12 


5.6 


217, 5 Li, 078 


28.9 


1899-* 


163,683 


34.0 


70,944,181 


51.8 


433.42 


13.3 


287,635,100 


69.4 


1900— 


175,501 


43.7 


76,838,628 


64.4 


437.82 1 14.4 


325,161,818 


91.5 


1901— 


183,188 


50.0 


82,160,337 


75.8 


448.52 17.2 


339,027,496 


99.7 


1902— 


194,945 


59.6 


93,947,766 


101.2 


4S1.92 25.9 


388,806,566 


128.4 


1903__ 


203, S3S 


66.9 


98,259,805 


112.0 


482.04 26.0 


3 10,224,148 


129.8 


1904— 


188,833 


50.5 


84,483,863 


80.S 


459.57 ' 20.1 


334,343,735 


96.9 


1905- 


202,401 


65.7 


97,463,104 


108.6 


481.54 , 25.8 


400,311,210 


135.7 



a Decrease. 



The following tables, compiled from the thirty-fourth annual 
report of the secretary of internal affairs, show the principal 
data for pig iron and tin plate production for the years 1896 to 
1906. 

Comparative statistics of pig iron and tin plate production, 1896 

to 1906. 



[Compiled from the Thirty-fourth Annual Report of the Bureau of Industrial 
Statistics- of Pennsylvania.] 

Pig iron. 





A verage per- 
sons employed. 


Aggregate wages 
paid. 


Average yearly 

earnings per 

employee. 


Value of product. 






a o"p 


■2 °T 




35 j 




iSf 






















o+a> 


j o+© 




o+s> 




O+m 




Num- 
ber. 


flJ)S 
£ a: » 


Amount.! saT 02 

<B ac 3> 


a 
3 


o> x a> 


Amount. 


3 £ c8 






° £ 5 




° * 3 


o 


O o3 g 






c8 




u 2. CD 






a 
< 






^ <X> © 

® fc; ® 


1896 


11,580 




$4,589,165 




$396.30 




$15,172,039 

48,884,854 




1S97 


11,272 


— 2.7 


4,676,970 


+ 1.9 


!ll.92 


+ 4.7 


+ 8.2 




11,911 


+ 5.6 


5,268,503 


+12.6 


142.32 


+ 6.6 


S3, 331,228 


+ 9.1 


1899 


15,347 


+28.S 


7,599,533 


+44.2 


495.18 


+11.9 


98,203,803 


+84.1 


1900 


15,785 


+ 2.8 


8,500,194 


+11.8 


588.50 


+ 8.8 


105. (49,928 


+ 7.4 


1901 


14,749 


— 6.6 


8,646,479 


+ 1.7 


.586.24 


+ 8.9 


106.SS3.000 


+ 1.4 


1902 


17,101 


+15.9 


10,191,759 


+17.9 


597.95 


+ 1.7 


126,857,231 


+18.7 


1903 16,912 


— 1.1 


10,662,196 


+ 4.6 


630.45 


+ 5.8 


131,775,613 


+ 3.9 


1901 14,087 


—16.7 


7,909,335 


—25.8 


.561.46 


—10.9 


101,830,467 


—22.7 


1905 16,7*7 


+18.9 


10,582,928 +33.2 


628.94 


+12.0 


162,716,176 


+59,8 


1006 

1 


+ 11. S 


12,063,556 1 +14.5 


647.29 


+ M 


187,909,641 


+15.2 



The enormous effort of the whole people as a Nation, 
and the burden* they gladly assume to maintain the national 
integrity, and to cnt ont the cancer of slavery that was 
eating ana; onr national life, do not grow any less, from 
an historical standpoint, as the decades pass. — Hon. Wm. H, 
Taft, at Riverside Park, New York. 



.238 



REPORTS OF STATE LABOR BUREAUS. 



Tin plate. 



i 


Average per- 
sons employed. 


Aggregate 
paid 


wages 


Average yearly 

earnings per 

employee. 


Value of product. 






' S-t <A 




A u ^ ■ 








, ^ • 






.2 ° i 




B ° | 




R o | 




B° \ 
























o+o> 




o+o> 




o +o) 




o+© 




Num- 
ber. 


p D cj 
o> « a> 


Amount. 


fl <u * 

Q) 02 0> 


9 ■ 


a <d <& 
3j vj <? 


Amount. 


+j^ — t« 
rj 0) * 


OS 

m 








O eS r< 


o 


° $ « 




o «« ft 


1896 


3,194 




$1,437,226 




$ J 56. 55 
568.17 




$4,637,811 




1897 


3,922 


+22.7 


2,227,217 


+54.9 


+24.4 


6,837,921 


+47.4 


189S 


5,036 


+28.5 


2,943,954 


+32.2 


584.58 


+ 2.9 


9,344,235 


+36.6 


1899 


7,682 


+52.5 


4,051,395 


+37.7 


527.78 


— 9.7 


12,152,532 


+30.1 


1900 


7,394 


— 3.7 


3,526,934 


—13.0 


477.00 


— 9.6 


12,590,897 


+ 3.6 


1901 


8,188 


+10.8 


4,593,561 


+30.2 


561.01 


+17.6 


17,052,338 


+35,2 


i9oa 


8,905 


+ 8.8 


4,506,105 


— 1.9 


506.02 


— 9.8 


16,116,755 


— 5.3 


1903 


8,261 


— 7.2 


5,688,188 


+26.2 


688.56 


+36.1 


20,373,303 


+26.4 


1901 


8,397 


+ 1.6 


5,135,828 


— 9.7 


611.63 


—11.2 


18,504,358 


— 9.2 


1905 


8,280 


— 1.4 


5,269,152 


+ 2.6 


636.37 


+ 4.0 


19,966,608 


+ 7.9 


1906 


8,685 


+ 4.9 


6,180,265 


+ 17.3 


711.60 


+11.8 


23,722,553 


+ 18.8 



In the following table are shown the average yearly earnings 
of employees in identical establishments in twenty-five selected 
industries for the years 1896 and 1905, compared: 

Average yearly earnings of employees in identical establish- 
ments in 25 selected industries, 1896 and 1005. 

[Compiled from the Thirty-third Annual Report of the Bureau of Industrial 

Statistics cf Pennsylvania.] 



Industry. 



Average 
earnings. 



1905 . 



Increase in 
1905 over 1696. 



Actual. 



Per cent. 



Bookbinding 

Brass, copper and bronze goods 

Building and structural iron work 

Carpets . 

Car springs, axles and railway supplies.. 

Cotton goods 

Cotton yarns 

Edge tools 

Foundries and machine shops 

Hats and caps 

Hosiery 

Iron and steel forgings 

Locomotives and cars built and repaired 

Paper manufacture 

Pottery 

Shovels, scoops, spades, etc 

Silk, ribbons 

Slate rooting, etc. (tonnage) 

•Stoves, ranges, heaters, etc 

Tool steel, etc 

Umbrellas and parasols 

Upholstery goods 

Window glass, bottles, and table goods. 

Woolen and worsted fabrics 

Wrenches, picks, etc 



$470.70 
407.01 
508.18 
346.63 
413.76 
279.41 
273.14 
435.70 
450.22 
298.23 
237.59 
478.61 
485.43 
381.90 
497.00 
399.23 
253.22 
303.61 
411.16 
554.04 
231.65 
364.10 
379:14 
277.04 
428.91 



$590.62 
547.01 
616.40 
422.88 
505.71 
372.82 
370.68 
545.77 
556.18 
394.80 
311.98 
642.76 
628.88 
483.41 
548.35 
570.47 
376.59 
456.60 
627.32 
851.62 
320.54 
477.76 
485.95 
396.45 
563.55 



$119.92 

140.00 

108.22 

76.25 

91.95 

93.41 

97.54 

110.70 

105.96 

98.57 

74.39 

164.15 

143.45 

101.51 

49.35 

171.24 

120.37 

152.99 

216.16 

297.58 

88.89 

113.66 

106.81 

119.41 

184.64 



25.5 
34.6 
21.3 
22.0 
22.2 
31.5 
35.7. 
25.3 
23.8 
33.3 
31.3 
28.6 
29.5 
26.6 
9.9 
42.9 
43.1 
.34.8 
52.5 
53.5 
38.4 
31.9 
28.2 
42.3 
31.4 



"OUT-OF-WORK BENEFITS" UNDER DEMOCRATIC AN© 
REPUBLICAN ADMINSTRATION. 

Interesting evidence in corroboration of the figures published 
by the Federal Bureau of Labor is furnished by a statement of 
the out-of-work benefits paid by the Cig'armaker's International 
Union during the period 1890 to 1907. Nothing affords a clearer 
insight into the general condition of employment than does 
the amount expended by labor organizations in benefits to 
members who are temporarily out of work. In the following 
table, which has been reproduced from the Cigarmaker's Official 
Journal of date of April 15, 1908, is shown the total cost of 



Or T-OF-WO!U< BENEFITS. 



239 



out-of-work benefits paid to members of that organization, and 
the total membership. By dividing- this cost by the member- 
ship we ascertain the average cost per member. The figures 
. follows : 



Otit-of-icorlc benefits paid by the Cigar Makers' International 
Union from 1890 to 1907. ♦ 



Year. 


Total cost of out- 
of-work benefits. 


Total member- 
ship of out-of- 
work benefit 
fund. 


Average cost per 
me; nber di out- 
ol work bene- 
fits. 


IS .__ _ . 


$22,760.50 
21,223.50 
17,460.75 
89,402.75 
174,517.25 
166, 377. 25 
175,767.25 
117,471.40 
70,197.70 
38,037.00 
23,897.00 
27,083.76 
21,071.00 
15,558 00 
29,872.50 
35,168.50 
23,911.00 
19,497.50 


24,624 
24,221 
26,678 
26,788 
27,828 
27,760 
27,318 
26,347 
26,460 
28,994 
33,955 
33,974 
37,023 
39,301 
41,536 
40,075 
39,250 
41,337 


0.92 


! II ..J _ 


0.88 




0.65 
:J.3 + 


1894 .____„ . 


0.27 


1895 -—-___. . — 


5.99 


I- Id rfi_ 


6.43 


1897 - 


4.46 


IS IS ... _ 


21,65 




1.31 





0.70 


__ 


0.80 


1 i'02 


0.5." 


I'/o; 


0.4C 


1 M)[ 


0.72 


1 1 f) _ 


0.88 


; (03 


0.61 


J'.!07 


0.47 







This table presents several significant facts. From 1890 to 
1892 the cost per member for out-of-work benefits decreased 
from $0.92 to $0.65. In March, 1893, the Democratic administra- 
i 'on came into power. The cost per member increased in that 
year to $3.34, then to $6.27, then a slight drop "to $5.99 and a 
i le again in 1896 to $6.43 per member. In march, 1897, the 
i 'publican administration returned. The cost per member dur- 
ing- that year fell to $4.46, and as business confidence was 
gradually restored and employment became more general, it 
continued to decline until in 1903 it was reduced to but $0.40 
per member. In 1904 and 1905 there was a slight increase. 
which was followed in 1906 by a decline that continued through 
190 7. the eost of out-of-work benefits during that year being 
$0.47 per member. Thus while from 1896 to 1907 the total mein- 
bcrsJiip increased from 27,318 to l f l,S37, or 51 per cent, the total 
cost for out-of-work benefits decreased from $175,767.25 to 
$19^97.50, or S9 per cent. 



REPUBLICAN LABOR LEGISLATION. 
Federal Legislation. 

Since its very inception the Republican Party has been legis- 
lating in every Congress for the uplifting of labor and the bet- 
tering of conditions for all working classes. Through our Tariff 
laws the working people of the United States have been protected 
against the cheaper labor of the outside world, and wages to-day 
are from two to ten times the amount received elsewhere. 
T!i rough our financial legislation the wage-earner has always re- 
ceived a full dollar, and his savings and investments have been 
fully protected. Not only have wages constantly increased and 
Of labor been reduced, fcttlt sanitary conditions ha\c hern 
con. dandy improved and inspection and liability laws have given 
to our working-men and women conditions and advantages better, 
vei-y iiiiich better, than in any other counlry. 

All the great National Labor laws on our statute books were 
put there by the Republican Party. Among the principal ones 
are the following- : x > 

Slavery. — The great revolution which exalted labor and freed 
the country from the curse of slavery was acomplished by the 
Republican Party, against the fiercest opposition possible by the 
combined forces of the Democrats and their allies. Still true to 



*40 REPUBLICAN LABOR LEGISLATION. 

its original ideas of freedom, the Eepublican Party, after a lapse 
of forty years since the emancipation proclamation of Lincoln, 
abolished slavery in the Philippine Islands. (Act pased by a 
Republican Senate and Eejmblican House and signed by Presi- 
dent Roosevelt July 1, 1902.) 

Involuntary Servitude of Foreigners. — In 1874 the Forty-third 
Congress, which was Eepublican in both Houses, prohibited, un- 
der heavy penalties, the holding to involuntary services of any 
person forcibly kidnapped in any other country. 

Peonage. — The act abolishing this kind of forced labor was 
passed by the Thirty-ninth Congress, when both Houses were 
Republican by a large majority, March 2, 1867. 

The Coolie Trade. — The legislation prohibiting the coolie trade 
is the work of the Republicans. The Act of 1875 closed our 
doors to the paupers and criminals of Europe, and the Exclusion 
Act of 1882 stopped the immigration of the Chinese. Upon the 
annexation of Hawaii in 1898 the immigration of Chinese thereto 
was prohibited by a Republican Congress, as was the migration 
of those already in Hawaii from the islands to continental 
United States. In President Roosevelt's Administration the Chi- 
nese-exclusion laws have been extended to the entire island ter- 
ritory of the United States. (Act passed by the Fifty-seven i li 
Congress and approved April 29, 1902.) 

Immigration. — The Republican Party has favored the Ameri- 
can standard of living, not only by abolishing compulsory labor, 
but also by excluding the products of the cheapest foreign labor 
through protective tariffs and by restricting the immigration of 
unassimilable elements from other races. 

The importation of foreign laborers under contract was first 
prohibited in 1885, but, owing to defective provisions for enforc- 
ing the law, continued almost unchecked until the amendments 
made in President Harrison's administration. (Acts of the Fifty- 
first Congress, which was Republican in both branches, and of 
the Fifty-second Congress, signed Maroh 3, 1891, and March 3, 
1893, respectively.) 

The Republican Party has increased the restrictions upon the 
immigration of cheap foreign labor in the new law of 1903. (Act 
passed by the Fifty-seventh Congress, both Houses being con- 
trolled by the Republicans, and signed by President Roosevelt 
March 3, 1903.) 

Convict Labor. — The law abolishing the contract system of 
labor for United States convicts passed the House March 3, 
1886, and the Senate February 28, 1887. All the votes against the 
bill were Democratic. 

The law providing for the construction of new United States 
prisons and the employment of convicts therein exclusively in 
the manufacture of such supplies for the Government as can be 
made without the use of machinery was passed by the Fifty-first 
Congress, which was Republican in both branches, and signed by 
President Harrison. (Chapter 529 of the Acts of 1890-91.) 

Protection of Seamen— -This was accomplished by the Forty- 
second Congress, when both Houses were Republican, and the 
Forty-third Congress, also Republican. 

Inspection of Steam Vessels. — Accomplished by the Fortieth 
Congress, which was controlled by the Republicans. 

Inspection of Coal Mines in the Territories. — Provided for by 
the Fifty-first Congress, both Houses being under the control of 
the Republicans ; approved by President Harrison. 

Safety Appliances on Railroads. — The original act providing 
for automatic couplers and power brakes on locomotives and ears 
used in interstate traffic was passed by the Fifty-second Congre s. 
and signed by President Harrison March 2, 1893. Owing to decis- 
ions of the courts, new legislation became necessary, and the 
Fifty-seventh Congress (Republican) passed a greatly improved 
law, which was signed by President Roosevelt March 2, 1903. 

Report of Accidents. — The Fifty-sixth Congress (Republican) 
passed a law requiring common carriers to make monthly reports 
of accidents to the Interstate Commerce Commission. (Approved 
by President McKinley March 3, 1901.) 

Eight-Hour Law. — The first eight-hour law in this country 
was enacted by the Fortieth Congress and approved by President 
Grant in 1868. It applied to all artisans and laborers employed 
bj the Government. 



REPUBLICAN LABOR LEGISLATION. 341 

In the Fiftieth Congress (1888) the eight-hour day wm estab- 
lished for letter carriers. The bill passed the Senate, which was 
Republican, without division. 

In President Harrison's administration the eight-hour law 
was extended to include persons employed by contractors on pub- 
lic works. (Chap. 352 of the Acts of 1892.) 

Department of Labor. — The Act creating the United States Bu- 
reau of Labor was passed by the Forty-eighth Congress (1884) 
and signed by President Arthur. In the Fiftieth Congress (1888) 
the Bureau was removed from the Department of the Interior 
and made an independent Department of Labor, all the votes 
cast against the bill being Democratic. In 1903 a ilepublican 
Congress established the Department of Commerce and Labor 
and made its head a Cabinet officer. 

Boards of Arbitration. — Act passed at the Fifty-fifth Congress 
(Kepublican) and signed by President McKinley June 1, 1898. 

Incorporation of National Trades Unions. — Provided for by 
Act of Congress in 1886. 

Recent Legislation. — It is within bounds to say that no pre- 
vious sessions of Congress have displayed a more active or intel- 
ligent interest in the needs of the wage-earners than the past 
three sessions, nor has there heretofore in the same length of 
time been as much important and progressive legislation in the 
interests of this class of our fellow-citizens. 

Congress has wisely co-operated with and supplemented the 
work of the Department of Commerce and Labor by enacting 
a law for the better protection of seamen a^nd to prevent their 
being induced to ship through false representations. It has pro- 
vided for an investigation into the conditions of working women 
and children ; it has amended and strengthened the law to pre- 
vent the importation ©f contract labor, and provided a plan for 
the further exclusion of that class of Asiatic immigration which 
enters into competition with American workmen. It has enacted 
a law limiting the hours of labor of employees engaged in rail- 
way train service and of railway telegraphers. 

The Congress just closed re-enacted the law passed by the 
Fifty-ninth Congress to conform to the opinion of the Supreme 
Court, making common carriers liable for accidents to their em- 
ployees engaged in interstate commerce. It has enacted a law for 
the further protection of the life of railroad employees in their 
hazardous employment. It has provided compensation for labor- 
ers and mechanics who may be injured in the service of the gov- 
ernment, and making a provision for their families in the event 
of their being killed in the course of their employment. It has 
enacted a model child-labor law for the District of Columbia. It 
has directed a thorough investigatibn into the working condi- 
tions of the employees of the telegraph and telephone companies 
doing interstate business ; and, in response to the urgent appeal 
from both capital and labor, Congress, before its adjournment, 
appropriated $150,000 for an investigation into the cause of mine 
accidents, with a view of promoting the safety of workers in our 
mines. 

Safety of Employees on Railroads. — The Ashpan Act.— An 
act to promote the safety of employees upon railroads by 
requiring common carriers engaged in interstate or foreign 
commerce by railroads to equip their locomotives with automatic 
self-dumping and self-cleaning ash pans was passed by Congress 
on May 30, 1908, the author of the measure as well as its chief 
supporters being of the Republican party. 

The following are some of the principal acts of legislation by 
the Republican Party: 

1. The Homestead Law, passed by a Republican Congress and 
signed by Abraham Lincoln. 

2. The acts for the issuance of legal tenders and national bank 
notes, which gave the people a currency of equal and stable value 
in all parts of the country. 

3. The system of internal revenue taxation, by which approxi- 
mately one-half of the ordinary expenses of the Government have 
been visited upon malt and spirituous liquors, tobacco and ci 

4. The thirteenth amendment to the Constitution, wVieh 
abolished slavery. 



242 REPUBLICAN LABOR LEGISLATION. 

5. The fourteenth amendment, which created citizenship of 
the United States as distinguished from citizenship of the several 
States, and provided that no State should abridge the privileges 
or immunities of citizens of the United States. 

6. The fifteenth amendment, which established equality of 
suffrage. 

7. The Civil Eights Act, which extended to all persons the 
equal protection of the laws. 

8. All existing laws for the payment of pensions to veterans 
of the Civil War and their surviving relatives. 

9. The liberal legislation respecting mineral lands, which 
built up the mining industry, added enormously to the wealth of 
the country in the precious and semi-precious metals, and made 
it possible to resume specie payments. 

10. The resumption of specie payments. 

11. The reduction of postage, the money-order system, the es- 
tablishment of the Railway Mail Service, free delivery, Rural 
^vee delivery, and other improvements that make the Post-Office 
Kstabiishment of the United States the most efficient agency of 
that character that can be found on the globe. 

l'S. The Life-Saving Service. 

13. The. artificial propagation and distribution of fish. 

14. The distribution of seeds, and other measures of vast; 
importance in the promotion of agriculture. 

15. The endowment of public schools, agricultural colleges 
etc.', by giants of land from the public domain. 

16. The Administrative Customs Act, which insures justice 
and equality in the collection of duties. 

17. The International Copyright Law, which respects the 
rights of authors in the product of their brains, but at the same 
time protects our publishing industry by requiring that books 
shall he printed in this rieraitry to entitle them to copyright. 

18. The establishment of the Circuit Court of Appeals, to re- 
lieve the Supreme Court and no longer require litigants to suffer 
a delay of three or four years in securing a decision on appeal. 

19. The admission of the States of Kansas, Nebraska, Nevada, 
Colorado, North and South Dakota, Washington, Montana, Idaho, 
Wyoming and Oklahoma. 

20. The Anti-Trust Act. (This was drawn by Senators Sher- 
man and Edmunds, and introduced by the former. In the House 
its passage was secured by William McXinley against an attempt 
to have it sidetracked in behalf of a bill for the free coinage of 
silver, which received the vote of every Democratic member with 
one exception. So it may be said that the law was placed upon 
the statute books over the united opposition of the Democratic 
Party as represented in the House.) 

21. The National Bankruptcy Acts of '1867 and 1898. which 
relieved many thousands of unfortunate men from their burdens 
of debt and restored them to commercial or industrial activity. 

22. The establishment of the Go!d Standard, which placed 
our monetary system on a stable basis and in harmony with the 
great nations of the world. 

23. Every schedule of duties on imports adopted within the 
past fifty years, in which the policy of protection to American 
labor has been distinctly recognized and efficiently applied, haw 
been the product of a Republican Congress. 

24. Railway rates to be fixed by enlarged Interstate Com- 
merce Commission; rebates and other discriminations penalized: 
sleeping ears, express companies and pipe lines made common 
carriers; railway passes prohibited. 

25. Panama Canal to have 85-foot level, with locks ; Panaina 
Canal bonds to enjoy same privileges as all other United States 
bonds ; Panama Canal supplies to be domestic products. 

26. Pure Food : Label must tell the truth, especially on- 
popular remedies. 

27. Meat inspection, "from hoof to can," at Government ex- 
pense. 

28. Free alcohol, denatured, for use in the arts. 

29. Consular service reorganized on merit basis. 

30. Quarantine against yellow fever nationalized. 

31. Financial law wherelw banks in periods of financial! 
stringency may issue currency to the amount of $500,000,000, de- 



REPUBLICAN LABOR LEGISLATION. 243 

positing as security therefor* bonds, commercial paper or other 
assets, such emergency currency being so taxed as to insure its 
retirement as soon as the stringency has passed. 

32. National monetary commission created to devise a sound 
monetary system for the Government. 

33. Consular service reorganized, abolishing unnecessary con- 
sulships and consulgeneralships and establishing those most 
needed. 

34. Widows' pensions increased from $8 to $12 a month and 
certain unnecessary restrictions abolished. 

35. Importation of impure tea, tea sittings, etc., prohibited. 

36. Model child labor law for District of Columbia. 

37. Employers' liability law. 

38. Government compensation law, providing compensation 
to certain federal employees for injuries received in line of duty. 

37. Restrictions on lands of the Five Civilized Tribes re- 
moved, adding $150,000,000 to taxable property of Oklahoma. 

Rigid Enforcement toy the Administration of the Eight- 

hoxir Law. 

[Extract from letter of Attorney-General MOODY to all United States 
District Attorneys, November, 1906.] 

"By order of the President your attention is called to the 
provisions of 'An Act relating to the limitation of the hours 
of daily service of laborers and mechanics employed upon the 
public works of the United States and of the District of 
Columbia,' approved August 1, 1892, commonly known as the 
eight-hour law. 

"The Government is determined upon a strict enforcement 
of this statute and you are directed diligently to investigate 
all complaints which may come to you from any source of 
violations of this law, and upon your own initiative to make 
investigation if there appears to you to be any reasonable 
ground for susj)ecting violation of this law. In every case in 
which you will secure sufficient evidence you will submit that 
evidence to the Grand Jury, with a view to Securing an indict- 
ment. 

********* 

"I desire to impress upon you the importance of using every 
effort to execute these directions; of being vigilant and active 
in this matter. You will make prompt and full report to me 
of all cases, and your action thereon, with your reasons there- 
for. You will report immediately the action of the Grand 
Jury and the result of all trials, with a specific statement of 
the penalty imposed." 

State Legislation, 

A political party must be judged not by what it proposes to 
do, but by what its adherents actually accomplish when in office. 
The laws which the representatives of a partj^ enact as legis- 
lators, rather than the party platforms, are the true index to 
the real policy of that party. The Democratic party has for 
many years posed as the friend of the workingman, and during 
the present campaign special emphasis will be given to this pre- 
tension. Let us see, therefore, what the two parties have act- 
ually done in the way of legislation for the protection of the 
wage-worker. 

According to the provisions of the Constitution, labor legis- 
lation is almost entirely within the province of the individual 
States, the powers of the Federal Government being restricted in 
this respect to emplojmient in the Government service or Federal 
public works and in interstate commerce, to seameni, to immi- 
gration, etc. We must, therefore, draw our conclusions mainly 
from the labor legislation enacted by the several States. For the 
purpose of the present study States having Republican legisla- 
tures at the present time are regarded as Republican States and 
vice versa. _, 

A study of the history of labor legislation in the United States 
will disclose the fact that nearly all such legislation originated 
in Republican States and was afterwards adopted by the Denxo- 



244 



REPUBLICAN LABOR LEGISLATION. 



cratic States. At the present time the statute books of the dif- 
ferent States show a decided preponderance of protective labor 
legislation in the Kepublican as compared with the Democratic 
States. This is brought out in the following summary table, 
which shows the number and per cent of Kepublican and Demo- 
cratic States which have enacted each of the important classes of 
labor laws indicated : 





Republican 

.stages. 


Democratic 
States. 


Legislation in force January 1, 1908. 


dumber. 


Per cent 
of an Re- 
publican 
States. 


Nui/iber. 


Per cent 
of all 

Demo- 
cratic 

States. 


Creating labor bureaus.- __ 


26 
23 
13 

18 

16 

23 
24 

26 
18 

12 
15 

23 
10 

17 

14 

28 


87 

43 

60 

53 

77 
80 

87 
60 

40 
50 

77 
33 

57 

47 
93 


7 
6 
2 

4 

2 

4 
18 

9 
10 

3 
6 

16 
2 

5 

1 
12 


44 


Creating factory inspection services 

Providing for free employment bureaus.- 

Providing for boards of conciliation 

and arbitration 


37^ 
12>£ 

26 


Establishing a compulsory 8-hour day 
for labor on public works.. 


12^4 


Prohibiting employment of children un- 
der 14 years of age in factories.. 


26 


T imiting hours of labor of children 

Restricting employment of children of 

school age and of illiterate children 

Prohibiting night work by children 

Prohibiting employment of children in 
operating or cleaning dangerous ma- 
chinery 


81 

66 
62^ 

19 


Limiting hours of labor of women 

Requiring seat* for females In shops or 
mc'cantile establishments 


37^ 
62 V 2 


Regulating sweatshops _ 


12% 


Requiring wages to be paid weekly, 
fortnightly or monthly 


81 


Protecting members of labor organiza- 
tions 


1 


Protecting the union label 


76 







An examination of thesre tables presents an interesting lesson 
in practical politics. We shall take up in rotation each of the 
more important subjects of labor legislation, and see which 
States have done the most for the workingman. 

Labor Bureaus. 

There are few agencies which have done more toward giving 
a clear insight into the problems of labor and capital, that ha\e 
brought employer and employee nearer together, or that have 
furnished the laboring people with facts for arguments in favor 
of protective legislation, than bureaus of labor and labor statis- 
tics. The above table shows that at present there are 33 State 
labor bureaus in the United States. Of these 26 are in Republican 
and 7 are in Democratic States. Reducing these figures to a pro- 
portionate basis, we find that 26 out of 30 Republican States, or 
87 per cent, have labor bureaus ; 7 out of 16 Democratic States, 
or 44 per cent, have labor bureaus. 



Factory Inspection Service. 

It is well known to all working people that protective labor 
laws are practically a dead letter in any State unless there is 
a factory inspection service organized for the purpose of search- 
ing out and bringing to justice persons who violate such laws. 
It is easy enough to enact protective legislation, but it is another 
thing to enforce it. If a State, therefore, enacts such laws and 
fails to organize a service for their enforcement, it is deceiving 
those whom it pretends to favor. Let us again observe the 
tables. We* find that 23 out of 30 Republican States, or 77 per 
cent, have laws creating factory inspection services., We also 
find that 6 out of 16 Democratic States, or 37i^ per cent, have 
factory inspection services. In examining the other sub- 
jects of labor legislation which follow, we must not lose 
sight of the fact that only 6 of the Democratic States have 
made provision for factory inspection services for the purpose of 
carrying out the 'provisions of the labor laws which will be under 
eoniideration. 



MWPVWUCAW LABOM LEGISLATION. U5 

Free Employment Bnreaai. 

The morement to establish free public employment bureaus, 
where working- people in search of work and employers desiring 
help might be brought together without expense to either, was 
started in Ohio by the passage of a law requiring the la'ior 
bureau of that State to establish agencies in the leading ci 
Other States followed Ohio's example, until at present laws pro- 
viding for such agencies have been enacted in 15 States. Of 
these 13 are Republican and 2 are Democratic. 

Boards of Arbitration and Conciliation. 

Twenty-two States have enacted laws providing for either 
State or local boards of conciliation and arbitration. Of these 
18 are Republican and 4 are Democratic States. 

Eifht-hoar Lair. 

For many years labor organizations have been endeavoring 
to secure legislation prohibiting labor on government worko 
or public contracts for more than eight hours per day. At the 
present time 18 of the 46 States have such laws on their statute 
bocks. Of these 16 are Republican and 2 are Democratic. In 
addition to these 4 Republican States and 1 Democratic State 
hare laws declaring eight hours to be a legal working day in the 
absence of a contract. 

Oaild Labor. 

Ever sinoe the introduction of the factory system, erer a 
century ago, the greatest sufferers from the greed of inconsid- 
erate and cruel employers have been the helpless children, who 
often at a tender age are placed in factories. It is a principle 
recognized in all civilized countries that children under 14 ; 
of age should not be employed in factories, and nearly all oivi- 
lized countries have laws placing a minimum age limit of 14 
.ear^ upon such child labor. In our country 27 States prohibit 
the employment of children under 14 years of age in factories. 
Of these. 23 are Republican and 4 are Democratic States. 

Many States have enacted laws placing certain restrictions 
upon the employment of children, usually 16 years of age. and in 
some cases even upon the employment of all minors. Of this 
class are laws limiting the hours of labor of children in fac- 
tories or stores, which have been enacted ; n 37 States. Of these 
24 are Republican, and 13 are Democratic States. 

Thirty-five States have placed restrictions upon the employ- 
ment of children of school age or of illiterate children, of whi h 
2fi are Republican and 9 are Democratic. 

Twenty-eight States prohibit night work by children. Of 
these 18 are Republican and 10 are Democratic States. 

Fifteen States prohibit the employment of children in op- 
erating dangerous machiuery or cleaning machinery in motion. 
Of these 12 are Republican and 3 are Democratic States. 

Woman Labor. 

Next to the children, the greatest victims of abuse by incon- 
siderate employers when unrestrained by law are women. In- 
vestigations have shown that their condition is sometimes pitiful 
where employers are given free scope in their employment. 
Their protection, in the interests of humanity and morals, has 
also been the subject of legislation in nearly all civilized coun- 
tries. In the United States 21 States have enacted laws which 
limit the hours of labor of women. Of these 15 are Republican 
and 6 are Democratic States. 

It is interesting to notice that of the 15 Republican States W>n- 
iting the hours of labor of women, 12 provide for factory in- 
spect Ion, while of the 6 Democratic States mentioned, only 5 
make such provision. 

Seats for Female* in Sbopa. 

Legislation on this subject needs no comment. Any man who 
has a sister or daughter employed in a shop or store, and every 



246 REPUBLICAN LABOR LEGISLATION. 

physician, knows what a hardship it is to a woman to be com- 
pelled to stand all day at a bench or behind a counter. Fortu- 
nately, in 33 States legislation has been enacted requiring em- 
ployers to provide seats for females. Of these 33 States, 23 are 
are Eepubiican and 10 are Democratic. 

Sweatshop Legislation. 

There is no greater menace to the health of the working 
people and nothing which tends more to lower and degrade hu- 
man beings, than to crowd them together in small, filthy work- 
shops, where they are often compelled to work, eat and sleep 
without regard to health or morals, and where the hours of la- 
bor are often so long that the victims, who are usually foreigners 
unacquainted with cur language, are shut out from all oppor- 
tunities for education or betterment of any kind. The scenes 
observed in these shops by official investigators have been re- 
volting beyond description. Long ago efforts have been made 
to regulate these sweatshops, and 12 States have enacted laws 
looking to this end. Of these 12 States 10 are Eepubiican and 2 
are Democratic. 

"Wage Payments. 

In order to insure the prompt payment of workingmen's 
wages in cash when due, 22 States have enacted laws requiriug 
employers to p?y wages weekly or fortnig-htly, and in some in- 
stances prohibiting a longer interval than one month between 
pay-days. Of these 17 are Eepubiican and 5 are Democratic. 

Protection of Members of Labor Organizations. 

Fifteen States have enacted laws, that are now in force, pro- 
hibiting employers from discharging persons on account of mem- 
bership in labor organizations, or from compelling persons to 
agree not to become members of labor organizations as a con- 
dition of securing employment or continuing in their employ. 
Of these all but one are Eepubiican States. 

Protection of tbe Union Label. 

Forty States have passed laws allowing trade unions to adopt 
labels or trade-marks to be used to designate products of the 
labor of their members, and prohibiting the counterfeiting or 
the use of such labels or trade-marks by unauthorized persons. 
Or these States 28 are Eepubiican and 12 are Democratic. 



This is an era of great combinations both of labor and of 
capital. In many ways these combinations have worked for 
good, bat they mnst work: under the law, and the laws con- 
cerning them must be just and wise or they will inevitably 
do evil; and this applies as much to the richest corporation 
as to the most powerful labor union. — President Roosevelt at 
Charleston, S. C, April 9, 1002. 

That whenever the need arises there should be a read- 
justment of » the tariff schedules is undoubted; but such 
changes can with safety be made only by those whose devo- 
tion to the principle of a protective tariff is beyond question, 
for otherwise the charges would amount not to readjustment 
but to repeal. The readjustment when made must maintain 
and not destroy the protective principle. — President Roose- 
velt's speech accepting 1004 nomination. 

Efficient regulation is the very antidote and preventive 
of socialism and government ownership. The railroads. 
until now, have been permitted to wield without any real 
control the enormously important franchise of furnishing 
transportation to the entire country. In certain respects 
they have done a marvelous work: and have afforded trans- 
portation at a cheaper rate per ton, per mile, and per passen- 
ger, than in any country in the world. They have, how- 
ever, many of them, shamefully violated the trust obligation 
they have been under to the public of furnishing equal facil- 
ities at the same price to all shippers. They have been 
weighed in the balance and found wanting. The remedy 
for the evils must be radical to be effective. If it is not so, 
then we may certainly expect that the movement toward 
government ownership will become a formidable one that 
cannot be stayed.— Hon. Wm. H. Taft, at Columbus, Ohio. 



REPUBLICAN LABOR LEGISLATION. 



247 



9 ^~j 



§ If 

a § 

~ 03 5 



a s* 





•ttiurSaiA 


* 




-* 


* 


* 


• 


* * 




•stjxaj, | 




* 




* * 






* 




•aessauuax | 


* * 




* * 




* 


* 


* * 




BUITOJBO tft n0 S 1 






* 


* 


* 


* 




op 


•BiuoqBiJio ( 






* 




* 




* 


re 


•BajiojBO q^o& [ 


* 




* 


* * 








02 


'BpBA9Js[ | 






* 








* 




•{jnossipi j 


* * 


* « 


* * 


* * 


* 


* * 


* * 


V 


•{adississipi | 





■pttBlilBH | 


* * 


n * 


* * 


* 


* 


* * 


* * 


£ 


•BUBismoi j 


* * 


* 


* 




* * 


* 


* 


SO 


•A3[on^uax | 


* * 




* * 


* * 


* 


* 


* * 




•eiSioao | 






* 


* * 




* 


* 




•Bpaoi^ j 






* 


* * 




* 


* 




•SBSUBJ[JY [ 






* * 


* * 






* 




•BUIBqBIV j 


* 




* 


* * 




* 


* 



JgnimoAAi ! 



•nisuoosiAA j 



•UO^SutqsBAl j 

•^nouusA i 

•qB 4 fl I 



■B;03[Ba_lipOSj_ 

■•puBisj epoqa | 

•BlGBAI^Snu&J | 

•noS9.io I 
._Joiqpj" 

'Ba03[Ba m-LCR \ 



•3[IOi M3N j 



•A3SJ9f A\9ft 

•»itqsduiBH -toojsl 

'B^SlUqaNJ 



•BaB4Uoy\[ | 

•B^OiansiijM | 

•UBSiq'J{H | 



* * * * * * * 

* * * ***** ** * 



* * * 



'SjiasrmoBssBjji; f 

•9Up3]'f j 

•BAVOI i 
•BUBIpUI | 

- -Btofa'ntfT 
•oqBpi I 



•ajBMBiaa j 
•^noi^oauuoo | 

•OpBIO[00 I 
•UlUJOJIIBO I 



h o 
."Sua 



n o 

- >, 



w g a 

a> f-> ij ' 



MOT 

a - - — ft 
- - - - 



Sjjl 

- 5 ' 



•§1*8 



§Efcg. 

- 4. r; 5 



1 "-5' 



! S , r - ? 









I 
ft 






6 c ;g 

re re > > w9 

O - = 



-- •_ - — ■ a 



; 5 E d 5 E 



- 



•Is 



Pipn I 



. 



HON. WILLIAM H. TAFT'S RELATIONS 
TO UNION LABOR. 



No class of citizens is more deeply interested in the reoords 
of presidential candidates than union workmen. They want the 
simple facts with regard to each man, and it is especially in- 
cumbent upon them not to form opinions on insufficient evidence, 
and to consider whether a candidate's record is one of achieve- 
ment or only of promise. Actions may not be more eloquent than 
words, but they are more convincing. Trade unionists, like other 
people, will never know their friends until they put them up:>n 
trial; and when a man is tried he should be judged by his whole 
course of action, and not by one isolated event over which there 
may be a differenoe of opinion even among trade unionists. If 
the candidate has had opportunity to do things, has he done 
them? And in the doing, has he been fearless and fair towards 
all classes of citizens? For trade unionists want neither charity 
nor favor ; they want opportunity and justice. 

Next to the churches and the schools, trade unionism has 
done much to raise the standard of American citizenship. It has 
said: "Suffer little children to come into the school house and 
the church and not into the factory and mine," and it has given 
to their progenitors higher wages, shorter hours, more sanitary 
conditions of living and greater security to life and limb — all of 
which have been shared by union and non-union workers ; that is 
to say, the union workers have fought the battles, carried the 
burdens and made the sacrifices, and society as a whole has ben- 
efitted, It has said: "The laborer is worthy of his hire, even 
though the laborer be a woman." It has at times been led by bad 
men, but the organization that is composed of saints has not yet 
taken out its charter. It. has made mistakes, but the man or the 
institution that does not make mistakes does not make anvthini>. 
This is no argument, however, in favor of the making or" heed- 
less blunders, and a blunder would be made if one who has suc- 
cessfully met many public trusts and discharged duties of a high 
national and international significance, and who has ever been 
prompted by motives of the highest regard for the welfare of 
the producing people of this nation, should be credited by organ- 
ized labor as being now, or ever having been, inimical to their 
interests. Secretary Taft's whole public career, and it is an ex- 
tensive one, contains no incident in which he has ever, by word 
or act, arrayed himself against the principles of trade union- 
ism. On the contrary, he has been its consistent friend and ad- 
vocate. His record shows that not only were his sympathies with 
the organization, but that his actions were those of a friend 
many years before either he or the American people had thought 
of him as a Presidential posibility. 

Misquoted and Unjustly Judged. 

Probably no judge has ever been, more misquoted and Unjustly 
judged by trades unionists than Judge Taft. His many decisions 
in favor of labor organizations have been minimized to such an 
extent that one is prompted to inquire if those who have ex- 
ploited his record before labor organizations were not more in- 
terested in the welfare of some political party than in the inter- 
ests of their labor organizations. Trade unionists should stand 
together, without regard to party, in contending for everything 
that will legitimately advance their principles, and should credit 
an honest judge with doing his duty, even though his decisions be 
adverse to them, so long as they are in accordance with the law 
of the land. His decisions, of course, may not voice the opinion 
of the judge ; he does not make the law. On the other hand, 
there is no decision by Judge Taft that can be cited that indi- 
cates personal antipathy or a personal unfriendliness on his part 
to labor organizations. 

348 



JUDGE TAFT'S LABOR DEC18I0TVM. 24§ 

Some of the Public Actions of William H. Taft Especially 
Helpful to Organized Labor. 

The words of Judge Taft in tbe Arthur and Phelan cases, 
in 1893-4, set tins fortli tbe rights of labor organisations 
under the law, were invoked and applied in favor of labor 
anions in the case of the strike on the Wabash Railroad in 
1003, and an injunction against the union dissolved. 

In 1804, in adjudging- Pheian guilty of contempt for dis- 
obeying - the injunction secured to prevent interference witn 
the operation of the Cincinnati-Southern Railway and to 
keep open interstate commerce, Judge Taft, in determining 
the limits of labor organizations, made a notable statement 
of the extent of the rights of labor which has since been 
frequently and successfully quoted by those contending in 
Vhe interests of union labor. 

In 1899 Judge Taft became the champion of the cause of 
union labor in the Narramore case, and as a judge of the 
U. S. Circuit Court of Appeals, reversed the decision of the 
court below and wrote an opinion that has finally become, 
in spirit and in letter, the established law not only of 
Ohio, but of the nation. He took an impregnable position 
against precedents and numerous decisions which had de- 
clared, in etfect, that, where an employer was violating the 
law with regard to the use of safety appliances, an injured 
workman could not recover damages because he was sup- 
posed to know of the violation, and to assume all risks con- 
sequent thereto. 

As Governor-General of the Philippines, he encouraged 
the organization of -workmen into unions that should be 
organized on American lines, and pardoned a labor leader 
-who had been convicted under an old Spanish law for "con- 
spiring to raise the wages of labor." 

As Governor-General Mr. Taft refused to accede to the 
demands of corporations and other employers to permit the 
introduction of cheap Chinese labor into the islands, and 
unequivocally declared himself against bringing the work- 
men of our new dependencies or those in our own land, into 
competition with the cheaper labor of the civilizations lower 
than our own. 

Mr. Taft's Decisions Relative to Labor. 

Frederick N. Judson, the attorney for the Eailroad Brother- 
hood in the Wabash case, says : 

"There is no foundation, therefore, for the suggestion that the de- 
cisions of Judge Taft were in any sense unfriendly to labor." 

One should read in the Review of Reviews for Au grist, 1907, 
what Mr. Judson says of the whole series of Judge Taft's labor 
decisions. The first of these decisions was delivered by Judge 
Taft in 1890 in the case of Moores vs. Bricklayers' Union et al. 
This case involved the application of the law to what is known 
as a secondary boycott; that is, a boycott not against an em- 
ployer, tut against a third party dealing with an employer, who 
is a stranger to the controversy between the employer and the 
employee. 

Moores had sold lime to the employer, Parker Brothers, who 
had been boycotted by the union. Parker Brothers had been 
boycotted because of their refusal to pay a fine imposed upon one 
of their employees and to reinstate a discharged apprentice. 
Moores, the plaintiffs, had been awarded damages by the jury 
on account of this secondary boycott, and it was this judgment 
of damages that was affirmed on appeal in an opinion by Judge 
Taft. This decision has been accepted as the correct exposition 
of the law; and the secondary boycott, that is. a boycott against 
a stranger to the trade dispute, has been practically abandoned 
by intelligent labor unionists as an unreasonable weapon. In 
other words, it has been conceded by the ablest labor leaders 
that it is not good policy to punish one's friends — employers who 
are running union shops — for the purpose of defeating one's ene- 
mies. 

The labor decisions of Judge Taft while on the Federal bench 
related directly to the Federal character of such controversies, 
involving the power of the Federal Government to protect inter- 
state commerce. There were onty two such cases decided by him. 
The first of these was decided April 3, 1893, and was in the mat- 
ter of the strike of the engineers of the Toledo and Ann Arbor 
Railroad. The engineers on strike refused to handle cars from 
complainants' road as long as the strike of the engineers on that 
road was unsettled. Tt is obvious thai this action involved h pa- 
ralysis of the business of interstate commerce. The Toledo 



330 JUDGE tafts labor decisions. 

road thereupon applied for an injunction against the connecting 
roads, alleging a combination violative of the interstate com- 
merce act. The engineers of the defendant company had no 
grievances of their own; and their refusal to handle the freig-bt 
of complainant's company was in no sense a strike for the bet- 
terment of their own conditions of service. Judge Taft's de- 
cision sustaining the injunction was accepted by the Eailroad 
Brotherhood as a fair statement of the law under the peculiar 
conditions of the railroad service. 

In the following year, 1894, came the great railroad strike in- 
spired by the American Eailroad Union, growing out of the 
strike of the Pullman employees at Pullman, Illinois. The offi- 
cials of the union demanded all railroads to boycott Pullman 
cars and to declare a strike of employees on any railroad on their 
refusal to declare such a boycott. The Cincinnati Southern, an in- 
terstate railway, was in the hands of a receiver, and it applied to 
the court for protection against one Phelan (a Socialist), an offi- 
cial of the American Eailway Union, who was engaged in inciting 
a strike among the employees of the road. There was no com- 
plaint by the employees of this road. The demand was that all 
traffic should be suspended and business xjaralyzed, union shops 
closed, and union industries destroyed, if necessary, until all the 
roads should consent not to carry Pullman cars. The purpose 
was to starve the public into compelling the Pullman Company 
to do something which the public had no right to compel it to 
do, and in the doing' of this to inflict irreparable injury upon 
many industries employing union workmen and working union 
hours. Tf the unions had won in this strife, would not the price 
have been too great for the object attained? Phelan had used lan- 
guage defying the order of the court. After a hearing he was 
adjudged guilty of contempt in an opinion by Judge Taf t, who at 
the same time emphasized the fact that employees had the right 
to quit their employment, but that they had no right to combine 
to injure their employer in order to compel him to withdraic 
from a mutually profitable relation with a third party for the pur- 
pose of injuring the third party, when the relation thus sought 
to be broken had no effect upon the character or reward of their 
services. But as the purpose of the combination was to tie up 
interstate railroads, not as the incidental result of a lawful 
strike for the betterment of the emploj^ees' own condition, but as 
a means of injuring a third party, it was an unlawful combina- 
tion violative of the anti-trust act of 1890. Thus, if Phelan had 
urged a strike for higher w 7 ages, or to prevent the lowering- of 
wages, he would not have been liable for contempt, but he had no 
right to incite men to quit when they had no grievance of their 
own to redress, for it was then essentially a boycott and not a 
strike. 

The words of Judge Taft in the Phelan case, setting forth the 
rights of labor organizations under the law, w r ere invoked and 
applied in favor of the labor unions in a notable case, that of a 
strike on the Wabash Eailroad by the Brotherhoods of Eailroad 
Trainmen and Firemen in 1903. The two brotherhoods, after 
failing to secure the advance wages and betterment of conditions 
demanded, had called a strike, and thereupon an injunction wax 
filed by the railroad company against the officers of these broth- 
erhoods. The rights of organization and of representation, as set 
forth by Judge Taft, were made the basis of the argument by the 
attorney representing the brotherhoods, and the injunction was 
dissolved. It was said in the opinion rendered by Judge Adams 
that on the subject of the organization of labor and the rights 
of labor unions no one had spoken more clearly and acceptably 
than Judge Taft. 

The "Assumed Risk" Decision. 

One of the most notable services that Judge Taft rendered to 
organized labor while presiding over a court was with relation to 
"assumed risk" and "contributory negligence" on the part of a 
workman attempting to recover damages from an employer for 
injuries received while in the service of the latter. In 1895 the 
Supreme Court of Ohio, consisting of six judges, decided that 
Morgan, a coal miner, could not recover damages for injuries 



JUDGE TAFTS LABOR DECISIONS. 2 5t 

received in the explosion of lire damp, notwithstanding the fact 
that the State required the mine owners to keep their mines free 
of lire damp ; that Morgan knew the company ignored the law, and 
therefore in accepting service with them he could not recover 
damages. A similar decision had been made in several other 
States. Judge Speer, who wrote the opinion in the Morgan case, 
said : 

"One who voluntarily assumes a risk thereby waives the provision of 
the statute made for his protection.'' 

Not only did this decision place a premium upon lawbreaking, 
but it rendered nugatory every law% made for the protection of 
the laboring classes, that was not respected by the employers. 
Only a law-observing employer was liable to damages. The labor 
organizations introduced a bill in the General Asseinbty of Ohio 
to abolish this infamous doctrine of assumed risk, but through 
the power of the railroads and other corporations and large em- 
ployers it was referred to a hostile committee and there buried. 

And now we come to the iSarramore case, in which Judge Taft 
became the champion of the injured workman, and wrote a de- 
rision that, notwithstanding reversals in the higher courts and 
the bitter opposition of those who were opposed to abrogating 
the old doctrines, finally became in spirit and in letter the es- 
tablished law not only of Ohio, but of the nation. 

Xarramore was a brakeman. His foot became tightly wedged! 
in an unblocked frog", which was left open contrary to the law 7 o.i. 
the State, and he was run down by a train and left a cripple'. 
ith a wife and children to support. The company was indiffe'ir- 
ent to the suffering's of the man and his famity, and a suit was 
tiled. The decision was against him, the railroad basing its de- 
fense on the decision in the Morgan case. The court in sub- 
stance said that Narramore knew that the company violated the 
law with regard to blocking of frogs; that this violation was so 
flagrant and open that Narramore was bound to know of it; and 
that even though he was free from fault himself, still he had no 
case, as he had assumed the risk of w r orking under the conditions 
as he saw them. Narramore's case was then carried to the 
United States Circuit Court of Appeals, presided over by Judge 
William H. Taft. Here at last was a judge who was broad 
enough to look beyond the moldy precedents of the dark ages. 
He overthrew the barbarous doctrine of "assumed risk," and 
gave to the workman in every dangerous vocation the rights that 
had so long been withheld from him. This decision of Judge Tali 
was the advance agent of blocked frogs, covered cogwheels, and 
guarded machinery. It eventually led to the resurrection of all 
the laws of Ohio that had been enacted for the protection of 
working men and women and which had been nullified by the 
action of the Supreme Court in the Morgan case. He said in 
part : 

"The intention of the legislature of Ohio was to protect the employer 
of railways from injury from a very frequent source of danger by com- 
pelling the railway company to adopt a well-known safety device. And 
although an employeee impliedly waives a compliance with the statute and 
agrees to assume the risk from unblocked frogs and switches by continuing 
in the service without complaint, this court will not recognize or enfon 
tuch agreement. The imposition of a penalty for the violation of a 31 
does not exclude other means of enforcement, and to permit the company u. 
avail itself Of such an assumption of risk by its employees is, in effi 
enable it to nullify a penal statute, and is against public policy." 

Judge Taft was overruled, but the fight based on his opinions 
was continued until satisfactory statutes were secured. 

The Federal Conrts and Organized Labor. 

Ax early as August 28, 1S95, in an address delivered before 
the American Bar Association at Detroit, Midhigan, he said: 

m -::- * Though the law of supply and demand will doubt 
less, in the end, be the influence of fixing this division (between 
capital and labor), yet during the gradual adjustment to the 
changing markets and the varying financial conditions, capital 
will surely have the advantage, unless labor takes- united action. 
During the bmi. rment of bu aditions, organized labor, if 

acting with reasonable discretion, can secure much greater con- 
as in tin advance of wages than if it were left to the slower 
Operation of natural laws, and, in the same way, as hard time* 



2^2 JCfHiE TM'TS LABOR DECISIONS. 

• •(/me on, the too eager employer may be restrained from undue 
haste in reducing- wages. The organization of cajntal into corpo- 
rations, with the x jos ition of advantage which this gave in a 
iixpite with single laborers over wages, made it absolutely 
ueeessary for labor to unite to maintain itself. For instance, 
how conld working men, dependent on each day's wages for 
living, dare to take a stand which might leave them without 
employment if they had not by small assessments accumulated 
a common fund for their support during such emergency. 

''The efficacy of the processes of a court of equity to prevent 
much of the threatened injury from the public and private nui- 
sances which it is often the purpose of the leaders of such strike 
to cause, has led to the charge, which is perfectly true, that judicial 
action has been much more efficient to restrain labor excesses 
than corporate evils and greed. If it were possible by the quick 
blqw of an injunction to strike down the conspiracy against 
public and private rights involved in the corruption of a legisla- 
ture or a council, Federal and other courts would not be less 
prompt to use the remedy than they are to restrain unlawful 
injuries by labor unions. But I have had occasion to point out 
that the nature of corporate wrongs is almost wholly beyond the 
reach of courts, especially those of the United States. The cor- 
porate miners and sappers of public virtue do not work in the 
open, but under cover; their purposes are generally a&vomplished 
before they are known to exist, and the traces of their evil paths 
are destroyed and placed beyond the possibility of legal proof. 
On the other hand, the chief wrongs committed by labor unions 
are the open, defiant trespass upon property rights and viola- 
tions of public order, which the processes of the courts are well 
adapted both to punish and prevent. 

The operation of the interstate commerce law is an illus- 
tration of the greater difficulty courts have in suppressing cor- 
porate violations of law than those of trade unions. The dis- 
crimination between shippers, by rebates and otherwise, which 
it is the main purpose of the law to prevent, is almost as diffi- 
cult of detection and proof as bribery, for the reason that both 
participants are anxious to avoid its disclosures ; but when the 
labor unions, as they sometimes do, seek to interfere with 
interstate commerce and to obstruct its flow, they are prone 
to carry out their purposes with such a blare of trumpets and 
such open defiance of law that the proof of their guilt is out 
of their own mouths. The rhetorical indictments against the 
Federal courts, that from that which was intended as a shield 
against corporate wrong, they have forged a weapon to attack 
the wage-earner, is in this way given a specious force which a 
candid observer will be blind to ignore. 

As a matter of fact there is nothing in any Federal de- 
cision directed against the organization of labor to maintain 
wages and to secure terms of employment otherwise, favorable. 
The courts so far as they have expressed themselves on the sub- 
ject, recognize the right of men for a lawful purpose to com- 
bine to leave their employment at the same time, and to use 
the inconvenience this may cause to their employer as a legiti- 
mate weapon in <tfie frequently recurring controversy as to the 
amount of wages It is only when the combination is for an 
unlawful purpose and an unlawful injury is thereby sought to 
be inflicted, that the combination has received the condemnation 
of the Federal as well as of State courts. 

Mr. Taft's Labor Record in the Philippines. 

And now let every trade unionist follow Mr. Taft into the' 
Phi lippines, and from th.e report of one of labor's most trusted 
representatives learn the truth; learn whether Governor-Gen- 
eral Taft fitly represeu ted the best that there is in our American 
i civilization. If so. he relied not only upon the churches and 
the introduction of public schools to uplift a dependent peoples, 
but he -encouraged the organization of unions on American hues 
to aid iti the great work. No class of men will resent being 
imposed on more quickly than union, workers, and those who 
have held up Mr. Taft as opposed to organized labor must now 
take the condemnation that honest men nlace upon falsifiers 



JUDGE TAFTS LABOR DECISIONS. MS 

He wants no favors; he wants what every self-respeoting trade 
unionist wants — justice, acid he will get it from organized labor 
when the truth is illuminated and they understand him and 
know his record. 

Mr. Edward Rosenberg, of San Francisco, was appointed by 
the American Federation of Labor a special commissioner to 
investigate labor conditions in the Far East. His reports were 
printed in the October and December (1903) numbers of the 
American Federation]' st, the official organ of the American Fed- 
eration of Labor. The contrast between the deplorable conditions 
of the wage-earner in the Hawaiian Islands and the satisfactory 
state of affairs introduced by the administration of Governor- 
General Taft in the Philippines is well brought out by Mr. Rosen- 
heim's exhaustive study. In the December (1903) Amerioan 
Federation ist, he sa^ys : • 

"I Would say that * * the plea of the Europeans and Americans for 
Chinese labor is prompted by the desire to quickly enrich themselves with 
the aid of cheap Mongolian labor. * * 

"If, on the other hand, the present policy of the Government is co-n- 
linued; if Chinese are excluded; if opportunity is given to labor to better 
its condition by the aid of trade unions; if 'children, are educated along 
American lines, and if the greed of European and American adventurers is 
not allowed to rule the Philippine Islands as it now rules the Hawaiian 
Islands, the American people in another generation will be able to point 
with justifiable pride to the success of democratic institutions among an 
Asiatic people, and forget in these achievements the injustice by the con- 
quest of arms of the Philippine Islands." 

With regard to conditions in the Philippines as inaugurated 
and maintained by Governor Taft, Mr. Rosenberg further says 
(American Federationist, October, 1903) : 

"The civil government is slowly but steadily proving to the Filipinos 
that American rule is really trying to make the Filipinos as fit for self-gov- 
ernment as the American people are ; that the purpose of American rule is 
not the exploitation of the natives, but their elevation. Should Chinese be 
allowed in here and the inevitable lowering of the already l'ow wages take 
place, the work of the Commission would be undone, and where now hope 
of a better day is springing up in the hearts of the natives, sullen despair 
and dangerous resentment would take its place. 

"My investigations as to the present system of exclusion,*- carried on 
under the law of April 20, 1902, shows that so far as it is known it 
effectively excludes the Chinese. * * 

"The trade unions constitute, a great moving force for the betterment 
of the conditions in these islands. With their aid wages have been raised 
dnd many abuses abolished, and though the present system is crude and 
faulty, steps are now being taken to place it 'on the well-tried trade union 
lines as adopted in the United States and affiliate the movement here with 
the American Federation of Labor. * * In June, 1899, the Filipino 
workers of Manila made the first attempt to organize trade unions. In a 
-hort time unions of barbers, cigar makers, tobacco workers, clerks, oar- 
penters, wtood workers, printers, lithographers, and others were formed. No 
attempt at federation was made until the return from Spain of Isabelo de 
los Reyes in June, 1901. Reyes had been banished from Spain by the 
Spanish Government for urging reforms in the islands. He quickly «uc- 
C eded in federating the respective unions, and was chosen President. He 
held this position for a little over a year. Many unions were organized 
during that period, the number of unions in June, 1902, being 150, with a 
membership estimated at 20,000. * *" 

"The local American press and employers of labor generally denounced 
Reyes, resulting in his being charged, under an old Spanish law, "with con- 
spiring to raise wages 'of laborers.' In September, 1902, he was found 
guilty and sentenced to four months in jail. He servod two months and 
vxis then pardoned by Governor Taft." 

Governor Taft pardoned the man not because he as not prop- 
erly convicted under the law, but because, as he said: 

"The statute is not in accordance with modern American views. The 
right of laborers to unite for the purpose of enhancing labor by withdrawing 
from the employment of those who make the demand for labor is generally 
conceded under American jurisprudence. In the new criminal code • * the 
American rules of jurisprudence are recognized, and no combination merely 
to enhance labor can be wrongful because of the excessive price requested 
or of the number engaged in the combination. For this reason, and because 
I do not think the statute as construed to be in accordance with American 
principles, I shall pardon Isabelo de los Reyes and remit what remains Of his 
sentence." 

Mr. Rosenberg speaks of a personal meeting with Governor 
Taft. What he says is now of particular significance, in view 
of the charge that some have made that Secretary Taft only 
became favorable to organized labor after he became a candidate 
for the Presidency. The quotation from Mr. Rosenberg's report 
follows: 

"On June 21 Governor Taft returned from Baguio. the summer 
capital of the civil government, and on the 23rd 1 had an inter- 
view with him, desiring to know the attitude of the Governor 



254 JUDGE TAFT'S LABOR DECISIONS. 

toward the organization of the workers. Jle said he favored the 
organization of the workers in trade unions, and had so stated, 
but that the Union Obrera Democratica de Filipinas of late 
had only harmed the eause of the workers, and the courts had 
to interfere. He wished success to the present movement to 
organize the workers on proper trade union lines. He referred 
me also to certain portions of his report for the year ending 
October 1, 1902. I quote the following from Governor Taft's 
report : 

"During the year 1902 there has been a movement for the organization 
of labor in the city of Manila, which doubtless will spread to other parts 
of the islands. It has been regarded, because of abuses which crept in, as 
an unmixed evil. I can not think it to be so. If properly directed, it may 
greatly assist what is absolutely necessary here, to wit, the organization of 
labor and tha giving to the laboring class a sense of the dignity of labor and 
of their independence. The labor organizations in the city of Manila are 
very much Apposed to the introduction of Chinese labor, and their declara- 
tion upon this point will find ready acquiescence in the minds of all Fili- 
pinos with but few exceptions. The truth is that, from a political stand- 
point, the unlimited introduction of the Chinese into these islands would be 
a great mistake. I believe the objection on the pdrt of the Filipinos to 
such a course to be entirely logical and justified. The development of 
these islands by Chinamen would be at the expense of the Filipino people, 
and they may very well resent such a suggestion." 



Blacklisted Laborer Should be Allowed Injunction.— Injury 
of Railway Employees. 

At the close of Mr. Taft's speech before Cooper Institute 
in New York City on January 10, 1908, among other questions 
he was asked the following : 

"Why should not a blacklisted laborer be allowed an injunc- 
tion as well as a boycotted capitalist?" 

Mr. Taft promptly answered : 

"He ought to be, and if I was on the bench I would give him 
one mighty quick." 

In Mr. Taft's speech at Columbus, Ohio, on August 19. 1907, 
he said, with regard to the injury of railway employees : 

"The frightful loss of life and limb among the railway em- 
ployees of this country, reaching more than 4,000 killed and 
65,000 injured in one year, has properly attracted the attention 
of Congress and the legislatures. It makes apparent that ser- 
vice in connection with trains of a railway is an extra hazardous 
business and may well call for Government supervision and ex- 
ceptional rules to secure the safety of the passengers and reduce 
the danger to employees." 

With regard to a statutory rule for liability of interstate 
railways to employees, he said : 

"Finally, it has regulated the rules for liability of an inter- 
state railway company to an employee injured in its service. 
This is a most important measure, for an unfortunate lack of 
uniformity has existed heretofore in respect to the rules of lia- 
bility in such cases, dependent on the court in which the case 
has been tried. The new statute makes everything uniform as 
to interstate railroads. It has introduced into the Federal law 
what is called the comparative negligence theory by which, if 
an employee is injured, proof of negligence on his part does not 
forfeit his claim for damages entirely unless the accident was 
due solely to his negligence. If there was negligence by the 
company, the jury is authorized to apportion the negligence 
and award compensation for the proper part of the damage to 
the employee and the question of negligence is always for the 
jury. 

"The most important provision of this law, however, is that 
abolishing what is known as the fellow-servant rule, by which 
an employee injured cannot recover from his employer for in- 
jury sustained through negligence of a co-employee. This rule 
was incorporated into the law by Chief Justice Shaw, of Massa- 
chusetts, on the ground of public policy. It was acquiesced in 
by the courts of England and of this country. Whatever may 
have teen the icisdom of the rule originally, a change of con- 
ditions justifies its abrogation. 



JUDGE TAFTS LABOR DECISIONS. 255 



MR. TAFT'S ANSWERS, JANUARY O. 190S, TO QLES'l'lOXS PHiJ- 
POl\DED BY THE PRESIDENT OF THE OHIO FEDERA- 
TION OF LABOR. 

Approves Defining" Parties' Rights. 

"I see no objection to the enactment of a statute which shall 
define the rights of laborers in their controversies with their 
former employers. As this statute would fix the lawful limits 
of their action, it would necessarily furnish a definite rule for 
determining- the cases in whioli injunctions might issue, as well 
as their character and scope. It should be said that this statute, 
however, if enacted bj' Congress, could relate only to the Dis- 
trict of Columbia or some place within the exclusive juris- 
diction of the Federal government, or to those employers and em- 
ployees whose relations are within congressional definition and 
control. 

'"Generally, the law governing the relation between employer 
and employee is a State law and is only enforced in the Federal 
courts when the jurisdiction arises by reason of the diverse 
citizenship of the parties. Speaking generally, however, both 
as to Federal and State legislation. I see no objection to a 
statute which shall, so far as possible, define the rights of 
both parties in such controversies more accurately. Indeed, 
the more exactly the lawful limitations on the actions of both 
parties are understood, the better for them, and for the public. 

Hearing- Before an Injunction. 

"Second. You ask me what I think of a provision that no 
restraining order or injunction shall issue, except after notice 
to the defendant and a hearing had. This was the rule under 
the Federal statute for many years, but it was subsequently 
abolished. In the class of cases to w*hich you refer I do not see 
any objection to the re-enactment of that Federal statute. Indeed, 
I have taken occasion to say in public speeches, that the power 
io issue injunctions ei- parte has given rise to certain abuses 
and injustice to the laborers engaged in a peaceable strike. Men 
leave employment on a strike : counsel for the employer applies 
to a judge and presents an affidavit averring fear of threatened 
violence and making such a case on the ex parte statement that 
the judge feels called upon to issue a temporary restraining 
order. The temporary restraining order is served on all the 
strikers : the}- are not lawyers ; their fears are aroused by the 
process with which they are not acquainted ; and, although their 
purpose may have been entirely lawful, their common deter- 
mination to carry through the strike is weakened by an order 
which they never have had an opportunity to question, and which 
is calculated to discourage their proceeding in their original 
purpose. To avoid this injustice, I believe, as I have already 
said, that the Federal statute might well be made what it was 
originally, requiring notice, and a hearing, before an injunction 
issues. 

•"Third. In answer to your third question, it would seem, that 
it is unnecessary to impose any limitation as to the time for a 
final hearing, if. before an injunction can issue at all, notice 
and hearing must be given. The third question is relevant and 
proper, only should the power of issuing ex parte injunctions 
be retained in the court. In such case. I should think it emi- 
nently proper that the statute should require the court issuing 
an ex parte injunction to give the person against whom the in- 
junction was issued an opportunity to have a hearing thereon 
within a very short space of time, not to exceed, I should say» 
three or four days. 

Might Designate Another Judge. 

"Fourth. Your fourth querj' is, in effect, what I would think 
of a provision in such cases by which the contemnor — that is, 
the person charged with the violation of an order of injunction — 
might object to the judge who issued the injunction as the one 
to try the issue whether the injunction had been violated, and 
to fix punishment in case of conviction, and thereby require 



256 JUDGE TAFT'S LABOR DECISIONS. 

another judge to try the issue and impose sentence, if neces- 
sary. In I ederal courts in such a case it would be proper to 
provide that the senior circuit judge of the circuit should, upon 
the application of the defendant or contemnor, designate another 
district or circuit judge to sit and hear the issue presented. I 
do not think such a restriction would be unreasonable. In most 
cases it would be unnecessary. But I admit that there is a popu- 
lar feeling that in contempt proceedings, and the very name of 
the proceedings suggest it, that the judge issuing the injunction 
has a personal sensitiveness in respect to its violation and there- 
fore that he does not bring to th# trial of the issue presented 
by the charge of contempt of his order the calm, judicial mind 
which insures justice. 

Opposes Jury Intervention. 

"I think that this popular feeling is, in most cases, unfounded, 
but I believe that it is better, where it can be done without 
injuring the authority of the court and the efficiency of its 
process, to grant such a privilege to the contemnor and thus 
avoid an appearance of injustice, even at some inconvenience 
in the matter of securing another judge. There is some analogy, 
though it is not complete, between the exclusion of a judge from 
sitting in the court of appeals to review a decision of his own, 
which now obtains in the practice of the Federal Court of Ap- 
peals, by statute, and the present suggested case. It is of the 
highest importance that the authority of the court to enforce 
its own orders effectively should not be weakened and therefore 
I am opposed to the intervention of a jury between the court's 
decree and its enforcement by contempt proceedings. It would 
mean long delay and greatly weaken the authority of the court. 

"I do not +hink that the permission to change the judge, how- 
ever, would constitute either serious delay or injure the efficacy 
of the order, while it may -secure greater public confidence in 
the justice of the court's action. The appearance of justice 
is almost as important as the existence of it in the adminis- 
tration of courts." 

Concluding Remark. 

The foregoing facts, coupled with what is more generally 
known with regard to his great achievements as a jurist and a 
public official, should appeal to every man of right reasoning 
in such manner as to convince him that, as President of the 
United States, Mr. Taft's great intellect and power would be 
found valiantly contending for the rights of the laboring, pro- 
ducing people. 

Mr. Taft's Own Views, Expressed in His Own Words. 

Mr. Taft discussed this subject fully and frankly in his 
sneech of acceptance of the nomination for the Presidency, 
delivered to the Notification Committee, at Cincinnati, July 28. 
1908. The speech is printed in full in this volume, and the 
student of this subject is especially referred to that portion 
thereof which states his views in his own words and in such 
detail as this important subject deserves. 



THE LABOR DECISIONS OF JVDGE TAFT. 

By Frederick N. Judson, Attorney for the Railroad brotherhood, 
Reprinted from the August, 1901, Review of Reviews. 

The present Secretary of War, Hon. William Howard Tait, 
has had the exceptional experience of beginning his dis- 
tinguished public career with judicial service on the State, and 
thereafter serving on the Federal bench. He was justice of 
the Superior Court of Cincinnati from 1887 to 1890, and among 
his immediate predecessors in that court were Hon. Judson Har- 
mon. ex-Attorney-General of the United States; Hon. John 1». 
Fa raker, ex-Governor and now United States Senator. After 
some two years' service as Solicitor-General under President 



JUDGE TAFT'S LABOR DECISIONS. Wi 

Harrison, Mr. Taft was appointed judge of the Circuit Court 
of the United States, holding that position until 1900, when he 
resigned to accept the appointment of Governor of the Philip- 
pines. 

It has been intimated from time to time, though not very 
definitely, that certain decisions of Judge Taft while on the 
bench were unfriendly to organized labor. Such suggestion, 
analyzed in view of the position of the judiciary in our po- 
litical and judicial system, is really an imputation upon the 
intelligence of the electorate. A judge does not make the law, 
nor does he decide cases according to his private judgment of 
what the law ought to be; but he declares and applies the rules 
of law to the facts presented as he finds them in the statutes 
or adjudged precedents, the recorded depositories of the law. 

It is true that our unwritten and non-statutory law has 
been termed judge-made law. But it is only in a very limited 
sense, if at all, that this expression is applicable to the case 
of an individual judge. His personality may be impressed upon 
the development of the law, as that of Judge Taft was doubtless 
impressed, by the clearness of his grasp of the fundamental 
principles of the law in their application to new conditions ; 
but his opinions must be in harmony with the current trend 
of judicial authority, and, in the last analysis, with the ad- 
vance of an enlightened public opinion. We have had frequent 
instances in this country where a judge, after leaving the bench, 
have become candidates for public office, but very rarely have 
the judicial decisions of a judge ever been discussed with refer- 
ence to his availibility for a public office. The reason is ob- 
vious. The high intelligence of our American electorate recog- 
nizes that the judges do not speak their individual judgments, 
but. in the words of Blackstone, "are the living oracles of the 
law," who declare and apply the laws of the land. 

It is to be assumed, therefore, that Judge Taft decided 
rases involving the rights and duties of labor and capital, as 
he decided other cases which came before him, according to 
the Jaw and facts as presented for determination. It lias 
not been intimated that he did not declare the law correctly, 
i)\- that his decisions were bad laAv in any legal sense. What, 
therefore, is really meant by the suggestion is that the law as 
declared in certain decisions of Judge Taft was unsatisfactory 
to certain class interests. While this impersonal position of 
a judge is clearly recognized, there is so much public interest 
in questions relating to the legal rights and duties of com- 
bination both in capital and labor-, that the dtediKtons of Judge 
Taft in this class of cases should be clearly understood, and 
therefore will be briefly reviewed from a legal and not from 
a partisan point of view. 

Moores vs. Bricklayers' Tnion ei al. 

The first of these opinions was delivered by Judge Taft while 
on the Superior Court bench of Cincinnati in 1890, in the case 
of Moores vs. Bricklayers' Union et al. (23 Weekly Law Bul- 
letin. 48). This case is interesting as involving the application 
of the law to what is known as a secondary boycott, that is. 
boycott not against an employer, but against a third party 
dealing with an employer, who is a stranger to the controversy 
between the employer and employee. 

This was not an injunction suit, nor did it involve any issue 
between the employees and their employer, either directly or 
through any refusal to handle in other places the so-ealied 
"struck work" from the shop of the employer. It was a 
secondary boycott pure and simple, in the form of a suit for 
damages incurred by the plaintiff through a boycott by t he 
Bricklayers' Union, declared on account of the plaintiff's selling 
lime to the employer, Parker Bros., who had been boycotted 
by the union. This primary boycott had been declared against 
Parker Bros, by the Bricklayers' Union because of their (Parker 
Bros.') refusal to pay a line imposed upon one of their em- 
ployees, a member of the union, and to reinstate a discharge 1 
apprentice. 

Parker P'-> had brought suit and had recovered damag-aa 
I 



258 JUDGE TAFTS LABOR DECISIONS. 

before a jury in another court against the same defendants 
mm -account of this same boycott (21 Weekly Law Bulletin, 
■2&8j) Moore Bros., the plaintiffs, had been awarded $2,250 
'-damages by the jury on account of this secondary boycott, 
'and it was this judgment which was affirmed on appeal in 
1 an -dffinion by Judge Taft, The case has become a leading 
i one ^©n the law of boy dotting. The right of legitimate com- 
I pet&ion in business with the incidental injuries resulting there- 
from, as illustrated in the then recently decided Mogul Steam- 
- sMp case in England, was distinguished by Judge Taft from 
'4ne^ case then at bar, where the immediate motive of injuring 
plaintiff was to inflict punishment for refusing to join in 
the boycott of a third party. Such a motive made the act 
malicious and legally unactionable in the case of an individual 
and a fortiori in the case of a combination. It was said, after 
reviewing the English cases : "We do not conceive that in this 
State or country a combination hy workingmen to raise their 
wages or obtain any material advantage is contrary to the 
law, provided they do not use such indirect means as obscure 
their original intent, and make their combination one merely 
malicious, to oppress and injure individuals." 

It was further said that a labor union could provide for 
and impose a penalty against any of their members who re- 
fused to comply with such regulations as the association made. 
They could unite in withdrawing from the employ of any 
person whose terms of employment might not be satisfactory 
to them, or whose action in regard to apprentices were not 
to their liking, but they could not coerce their employer by 
boycotting him and those who dealt with him ; that even if 
acts of this character and with the intent are not actionable 
when done by individuals, they become so when they are the 
result of combination, because it is clear that the terrorizing 
of the community by threats of exclusive dealing in order to 
deprive one obnoxious member of means of sustenance would, 
become both dangerous and offensive. This decision, subse- 
quently affirmed by the Supreme Court of Ohio without opinion, 
has been accepted as the correct exposition of the law, and 
the secondary boycott, so-called, that is, a boycott against a 
stranger to the trade dispute, has been practically discon- 
tinued and abandoned by intelligent labor unionists as an un- 
wise and unreasonable weapon in such controversies. 

Toledo and Ann Arbor Engineers' Strike of 1893. 

The so-called labor decisions of Judge Taft while on the 
Federal bench related directly and primarily to the Federal 
character of such controversies, in that they involved the su- 
premacy of the Federal power in the protection of interstate 
commerce. Though there were only two such cases decided 
by him, the decisions attracted general attention on account 
of the widespread industrial disturbances in 1893-4. 

The first of these cases was decided April 3, 1893, in the 
matter of „the strike of the engineers of the Toledo and Ann 
Arbor Railroad (54 Fed. Rep., 730). The engineers on strike 
were members of the Brotherhood of Locomotive Engineers, of 
which P. M. Arthur was the chief. Under the then rule of 
the brotherhood, known as rule twelve, the engineers in the 
employ of the connecting* railroad companies, members of the 
brotherhood, refused to handle and deliver any cars of freight 
from complainant's road as loug as the strike of the engineers 
of that road, who were members of the brotherhood, was un- 
settled. It was obvious that this involved practically a paralysis 
<of the business of interstate commerce between the com- 
plainant and the defendant railroads. The Toledo road thereupon 
applied for an injunction against the connecting roads, al- 
leging the existence of a combination violative of the Inter- 
state Commerce Act, preventing the performance of their duties 
in regard to interstate commerce in the exchange of traffic, and 
asked the court to enjoin this unlawful interference. A motion 
was filed by the complainant for a temporary injunction against 
Mr. Arthur to restrain him from enforcing rule twelve, where- 
m rider the employees of the defendant companies were re- 
cusing to handle the cars of the complainant company. 



JUDGE TAFT'S LABOR DECISIONS. 259 

The opinion of the Court by Judge Taft was notable in its 
clear expression of the power of a court in the issuance of 
a mandatory preliminary injunction where necessary to pre- 
vent irreparable injury. "The normal condition," it was said, 
— "the status quo, — between connecting- common carriers, under 
the Interstate Commerce law is a continuous passage of freight 
backward and forward between them, which each carrier has 
a right to enjoy without interruption, exactly as riparian owners 
have a right to the continuous flow of the stream without ob- 
struction." Usually the status quo in the injunction can be 
preserved until final hearing by an injunction prohibitory in 
form, but where the status quo is not a condition of rest, but 
of action, the condition of rest, that is, the stoppage of traffic, 
will iniiict irreparable injury not only upon the complainant 
but the public. In such cases it is only a mandatory injunc- 
tion compelling the traffic to flow as it is wont to flow, which 
will protect the complainant from injury. The form of the 
remedy must be adapted to the emergency, and where the con- 
tinuity of interstate traffic is threatened an injunction mandatory 
in term is often the only effective remedy. 

Still more important was the opinion in its clear analysis 
of the 'position of employees of railroads engaged in inter- 
state traffic, and their rights and duties as such employees under 
the Interstate Commerce act. The relation of such employees 
to their railroad companies is one of free contract, and is not 
analogous to that of seamen in the maritime service, who, to 
a certain extent, surrender their liberty in their employment 
and are punishable for desertion. The employment, therefore, 
in the case of railroad employees, was terminable by either 
party. The court could not compel the enforcement of per- 
sonal services as against either the employer or the employed 
against the will of either. The court said especially was this 
true in the case of railroad engineers, where nothing* but the 
most painstaking and devoted attention on the part of the em- 
ployed will secure a proper discharge of his responsible duties ; 
and it would even seem to be against public policy to expose 
the lives of the traveling public and the property of the ship- 
ping public to the danger which might arise from the en- 
forced and unwilling performance of so delicate a service. 
While a court of equity could not specifically compel the per- 
formance of a contract for personal service, it did not follow 
that there were no limitations upon the right of employees 
to* abandon their employment, — that is, as to the time and 
place of the exercise of such right (see remarks of Supreme 
Court in Lemon case, 166, U. S.), so as to avoid imperiling 
life or property. 

Though the relation of railroad employer and employed 
was one of free contract, the court also held that while the 
relation continues they were bound to obey the statute com- 
pelling the interchange of interstate traffic, and also bound by 
the orders of the court enjoining their employer corporation 
from refusing such interchange. A combination of the em- 
ployees to refuse, while still holding their positions, to per- 
form any of the duties enjoined by law or by the court upon 
their employer, would be a conspiracy against the United 
States and punishable as such. 

The court therefore held that the mandatory injunction 
was properly issued against Arthur, compelling him to rescind 
the order to the engineers in the employ of the defendant 
directing them not to handle complainant's freight. 

The engineers of the defendant companies had no grievances 
against their own employing companies; and their refusal to 
handle freight of complainant company was in no sense a 
strike for the betterment of their own conditions of service, 
and was therefore not a strike but a boycott, and this would 
necessarily paralyze the movement of interstate traffic. 

The effect of this decision was far-reaching. It was the first 
Judicial declaration of the duties of railroad employees in in- 
terstate commerce. It was followed in oilier circuits and was 
iiol only approved by the general public, but was accepted bj 
the railroad brotherhoods as a fair statement of the law ninl. i 
the peeuiin, conditions of the railroad service. The result 



260 JUDGE TAFrS LABOR DECISIONS. 

was the abrogation of rule twelve by the brotherhood of the 
engineers, and since that time, as was signally shown in the 
extensive railroad strike of the following year, the railroad 
brotherhoods, not only the engineers, but the conductors, firemen, 
and trainmen, have been conspicuous for their conservatism in 
the adjustment of differences with the management of their 
respective companies 

The Phelan Contempt Case. 

In the following year, 1894, came the great railroad strike 
inspired by the American Railway Union, growing out of the 
strike of the Pullman employees at Pullman, 111. The officials 
of the union demanded all the railroads to boycott the Pullman 
cars, and declared a strike of the employees on any railroad 
on their refusal to declare such a boycott. The Cincinnati 
Southern, an interstate railway, was in the hands of a receiver, 
who had been theretofore appointed by the United States Court 
of Ohio, and the receiver arjplied to the court for protection 
against one Phelan, an official of the American Union, who was 
engaged in inciting a strike among the employees of the rail- 
road. There was no complaint by the employees of this road, 
as there had been none by the employees in the Arthur case, 
for the betterment of their condition of service. The demand 
was that all traffic should be suspended and business paralyzed 
until all the roads should consent not to carry Pullman cars. 
In the words of the court, the purpose was to starve the rail- 
road companies and the public into compelling the Pullman 
company to do something which they had no lawful right to 
compel it to do. 

It seems that a restraining order had been issued by the 
court prohibiting interference with the management of the 
receiver in the operation of the road, and Phelan had used 
language defying his order. He was thereupon attached for 
contempt, arid after a hearing was adjudged guilty of con- 
tempt in an opinion by Judge Taft (62 Fed. Rep., 803). The 
opinion emphasized the same distinction which had been pointed 
out in the Arthur case in the preceding year. The employees 
had the right to quit their employment, but they had no right 
to combine to injure their employer, in order to compel him 
to withdraw from a mutually profitable relation with a third 
party for the purpose of injuring the third party, when the 
relation thus sought to be broken had no effect whatever lupon 
the character or reward of their services. As the purpose of the 
combination was to tie up interstate railroads, not as an inci- 
dental result of a lawful strike for the betterment of the 
employees' own conditions, but as a means of injuring a third 
party, it was an unlawful combination, violative of the anti- 
trust act of 1890. It was also a direct interference with inter- 
state commerce. 

Thus, if Phelan had come to Cincinnati and had urged a 
strike for higher wages, or to prevent lowering of wages, he 
would not have been liable for contempt, but he had no right 
to incite the men to quit, when they had no grievances of 
their own to redress, as it was then essentially a boycott and 
not a strike. 

It was in this Phelan case that Judge Taft, in determining 
the limits of the rights of labor organizations, made this lucid 
and notable statement of the extent of their rights, which has 
been frequently quoted: 

The employees of the receiver had the right to organize into or 
join a labor union which would .take action as to the terms of their 
employment. It is a benefit to them and to the public that laborers 
should unite for their common interest and for lawful purposes. They 
have labor to sell. If they stand together they are often able, all of 
them, to obtain better prices for their labor than dealing singly with 
rich employers, because the necessities of the single employee may compel 
him to accept any price that is offered. The accumulation of a fund 
lor those who feel that the wages offered are below the legitimate market 
value of such labor is desirable. They have the right to appoint officers, 
who shall advise them as to the course to be taken in relations with 
their employers. They may unite with other unions. The officers they 
;p>) >int, or any other person they choose to listen to, may advise them 
to the proper course to be taken, both in regard to their common em- 
-n1 ; or if they choose to appoint any one, he may order them on 
P" in of expulsion from the union peaceably to leave the employ of their 
i lo i i ■ I ■ cause any of the terms of the employment are unsatisfactory. 



JUDGE TAFTS LABOR DECISIONS. 261 

Tikis declaration of the right of organization and repre- 
sentation of labor unions has often been cited and quoted in 
support of the unions, and was applied, as will be seen, most 
effectively in their behalf in the Wabash strike of 1903. 

The jurisdiction of the United States courts in the pro- 
tection of interstate commerce, and the supremacy of the fed- 
eral power in such questions, were therefore fully sustained 
by the Supreme Court of the United States (see in re Debs 
ease, 158 U. S., 564; also in re Lemon, 166 U. S. 548). 

The reason of the prompt acceptance of this application 
of the law by Judge Taft was the universal recognition that 
a boycott by railroad employees in interstate commerce, as 
distinguished from a strike, was impracticable and inadmis- 
sible, in view of the paramount public interest concerned. It 
is true that in ordinary trade disputes the public convenience 
and even public necessities are not always given the weight 
they should have. But wherever interstate or foreign commerce 
are involved the public interest is made paramount by the laws 
of the United States. All classes of the community, working- 
men as well as capitalists, are interested in the proper trans- 
mission of the mails and in the uninterrupted passage of person 
and freight. This principle of the protection of commerce 
gainst interruption has become firmly intrenched in our juris- 
prudence. Under the law declared in these cases, our com- 
merce is subject to be interrupted only by the incidental injury 
resulting from cessation of service, and not by boycotts or 
sympathetic strikes not related to the bettering of the con- 
ditions of the employees' service. That this principle is firmly 
established is primarily owing to the clear and courageous enun- 
ciation of the law by Judge Taft. 

The Addyston Pipe & Steel Company Case. 

The same principle of the freedom of interstate commerce 
from illegal restraint declared in the Arthur and Phelan cases 
was also held by Judge Taft to apply to a business com- 
bination, or a "trust," in the Addyston Pipe & Steel Company 
case (85 Fed. Rep., 271). In this case there was an allotment 
of territory, comprising a large part of the United States, 
among a number of companies engaged in the manufacture of 
iron pipes, and in that territory competition was eliminated 
through this allotment of territory, and through a system of 
pretended bidding, giving an appearance of competition, at pub- 
lic lettings, when in fact there was no competition. The de-. 
cision of the Court of Appeals, reudered by Judge Taft, was 
afterward affirmed by the Supreme Court of the United States. 
His opinion is a notable contribution to the law, in its masterly 
analysis of the essential distinction between the legitimate con- 
tracts in restraint of trade, which are merely ancillary, or 
incidental, to some lawful contract, and necessary to protect 
the enjoyment of the legitimate fruits of that contract, and the 
agreements where the sole object is a direct restraint of com- 
petition, and to enhance and maintain prices. These latter 
agreements are unenforceable at common law, and are violative 
of the anti-trust act when made with reference to interstate 
commerce. 

The distinction here so clearly pointed out has been the basis 
of the construction of the anti-trust act by the United States 
Supreme Court in all its subsequent decisions. 

.Indite Taft's Opinion Supports the Union in Wabash Strike 

Case. 

The words of Judge Taft in the l'helan case quoted above. 
setting forth the fights of Labor organizations under the law. 
were directly invoked and applied on behalf of the labor unions 
in a notable case, that of the threatened strike on the Wabash 
Railroad by the Brotherhoods of Railroad Trainmen and Kire 
open in 1903 (121 Fed. Rep., 563). In this case, the represent- 
atives of these two brotherhoods, after failing to secure feiw 
advance of wages and betterment of conditions demanded by 
the brotherhoods, had been forced to call a strike as their last 



26S JUDGE TAFTS LABOR DECISIONS. 

resort, and thereupon an injunction was filed by the railroad 
company, in the United States Circuit Court in St. Louis, against 
the officers of these brotherhoods, enjoining them from calling 
a strike on the Wabash, as an interstate railroad, on the ground, 
among others, that the officials of the brotherhoods were not 
employees of the railroad, and that their action in combining 
in calling a strike would be a direct interference with inter- 
state commerce, and was therefore an unlawful conspiracy. 

The rights of organization and the rights of representation. 
as set forth by Judge Taft, were thus directly involved. The 
writer represented those brotherhoods in the hearing on the 
motion to dissolve the injunction granted in this case, and used 
the above quoted statement of Judge Taft as the most lucid 
and effective defense of the action of the brotherhoods and their 
officials. The Court (Judge Adams) found from the evidence 
that there was an existing dispute about the conditions of ser- 
vice on the railroad, and that the officials of the brotherhood 
had been directed by the members of the brotherhoods to 
call a strike ; that they had a right to be represented in such 
matters by their own officials, and that the two unions had 
a right to act in unison in their effort to secure the betterment 
of the conditions of their members, that an agreement to strike 
under those circumstances was not an unlawful conspiracy, and 
the injunction was therefore dissolved. It was said in the 
opinion that on the subject of the organization of labor, and 
the right of labor unions, no one had spoken more clearly and 
acceptably that Judge Taft, in this language above quoted. 
(After the dissolution of the injunction, the differences be- 
tween the railroad and its employees was amicably adjusted, 
and the threatened strike was averted.) 

Thus, while the law was declared by Judge Taft as to the 
limitations upon the lawful actions of labor unions, the es- 
sential principles involved in the right of organization were 
also announced by him in the same opinion. This right of or- 
ganization of workingmen in the unions would be futile with- 
out the right of representation by their own officials in the 
effort to secure the betterment of their conditions. The rem- 
edies adopted by workingmen, sometimes mistaken remedies 
for the enforcement of their rights, such as the closed shop 
and the boycott, are only weapons for the enforcement of the 
fundamental right of collective bargaining for the common bene- 
fit. There is no foundation, therefore, for the suggestion 
that the decisions of Judge Taft were in any sense unfriendly 
to labor, and it is clear that through his lucid declarations 
of the rights of labor the railroad brotherhood secured the 
judicial vindication of their rights of combination and of rep- 
resentation in their demands for the betterment of their con- 
ditions. 

While these important decisions were rendered by Judge 
Taft, declaring the freedom of interstate commerce from il- 
legal combination both of labor and capital, the limitations 
upon the rights of organized labor, as well as the essential 
principles involved in the right of organization for the better- 
ment of their conditions, it would be an imputation upon the 
brilliant judicial record of Judge Taft to suggest that in any 
of these opinions he declared the law as a friend of any class. 
or that he made any judicial utterance in any of the cases 
otherwise than a living oracle of the law, bound to declare, 
in every case brought before him, not his own private judg- 
ment, but the judgment of the law. 



William H. Taft as a Judge Upon the Bench. 

[By Richard V. Oulahan.— From the August, 1907, Review of Reviews.] 

Mr. Taft is the very personification of energy. He is a human 
steam engine. He is always busy. Work, and hard work, is 
his pleasure. A handsome man, he would attract attention 
from that circumstance alone. He breathes good will and sug- 
gests mental, moral, and physical wholesomeness. Yet, with 
all his pleasant informality and his frequent laughter, he has 
a dignity of manner and carriage that commands respect and 



WILLIAM H. TAFT AS JUDGE. 203 

attention. You feel that he is a man of brain power, one of 
the few men who seem to grow greater the more intimately 
you know them. 

Captain Seth Bullock, plainsman and friend of President 
Eoosevelt, paid, in homely phrase, one of the highest tributes that 
could be paid to any human being, when he was asked his 
opinion of Mr. Taft. Captain Seth has the plainsman's reti- 
cence of speech. He could not g'ush if he tried. "What is it 
about Taft that you like?" he was asked. He hemmed and hawed 
before he answered, "He's simply all right. He's a man you 
don't have to be introduced to twice." 

It is this ability to make people feel at their ease that 
is one of Mr. Taft's greatest charms. He seems to take an 
interest in everybody he meets. There is nothing of the poli- 
tician in his method of treating people. His manner is too 
natural to be studied. The farmer's boy who comes to Wash- 
ington to find out about the chances of getting an appoint- 
ment to the Military Academy is on friendly terms with the 
Secretary of War after they have talked five minutes. The 
statesman, the military hero, the newspaper correspondent, the 
department clerk, are all treated alike when they call on Mr. 
Taft. He plays no favorites among those whom he believes to 
be fair and square. 

The New England Conscience. 

Mr. Taft has the New England conscience, and this helped 
him in his judicial career. If he thinks a thing is wrong he 
does not hesitate to say so. This phase of his character takes 
a peculiar form. He will go out of his way to avoid hurting 
the feelings of any of his fellow-men ; he does not like to in- 
flict pain ; but frequently, when it was to his personal and 
political advantage to be silent, he has spoken out, because 
silence would mean a misunderstanding of his attitude. He 
wanted everybody to know how he stood. When he went to 
Ohio in 1905 to serve as temporary chairman of the Eepublican 
convention he made a speech which was in substance an appeal 
to his party brethren to smash on election day the Eepub- 
lican machine in Cincinnati. Taft was talked of at that time 
as a Presidential possibility. He knew that his course would 
injure him in the party organization ; that he would make 
enemies of many whose friendship would be valuable if he were 
a candidate for an elective office. But to him words of praise 
for the Eepublican machine ticket in Cincinnati or silence on 
the subject meant hypocrisy, and his New England conscience 
told him to go to the other extreme. It is this peculiarity 
in Taft's temperament which amazes those friends of his who 
think he should trim his sails in the winds of popularity. 

He exhibited the trait while he was on the Federal judicial 
bench. The prospect of the political future cut no figure with 
the young jurist. He had no apologies to make for his course 
at that time and would not brook any questioning of its fair- 
ness. Today, as a candidate for the Presidential nomination, 
with the labor element as a powerful factor in the determination 
of the result, he will not hesitate to tell exactly what he did 
as a judge when labor injunction cases were brought before 
him. If anybody anxious to injure Mr. Taft's prospects for" 
the Presidency wishes to get the record of his course in the 
labor cases he need not pursue secret methods to obtain the 
information. Let him apply to the office of the Secretary of 
War, Eoom 226, second floor, War Department Building, Wash- 
ington, D. C, and a genial gentleman of large frame will fur- 
nish it cheerfully. Taft is not ashamed of anything he has done 
or afraid of the consequences of it. 

Taft was thirty when he became a judge of the Superior 
Court in Cincinnati and only thirty-five when he was appointed 
a judge of the United States Circuit Court. His ambition had 
tended to the Federal bench, and this office appeared to pave 
tin- way for the realization of his wish to be a member of 
the highest tribunal. Te world knows how, when otfered an 
appointmenl as an Associate Justice of the United 8tates Su- 
preme Court, which meant the fulfillment of his heart's dasir*. 



264 WILLIAM H. TAFT AS JUDGE. 

he placed duty ahead of everything else and declined the 
tender. He was then in the Philippines and he preferred to 
stay there at the sacrifice of personal comfort and individual 
taste, because his departure from Manila would cause lack oi 
confidence among the native people and interfere with the work 
he had set out to do. The real Taft stood out in these word 
telegraphed to President Eoosevelt : "Look forward to time when 
I can accept such an offer, but even if it is certain that it can 
never be repeated, I mast now decline." And when the Presi- 
dent insisted, that he, as President, "saw the whole field" and 
intended to make the appointment, Taft came back with reasons 
which convinced Mr. Roosevelt that the big- man who wanted 
to be a Supreme Court jurist but refused for the sake of con- 
science was entitled to have his own way. 

Dignified on the bench, his sedate manner was tempered 
by a suggestion of kindliness and charity that he could not 
conceal. One of those associated intimately with him in the 
days' when he wore the judicial ermine has said: "He was 
Judge Taft in the court-house, but Bill Taft away from there." 
His interest in young men, particularly in young lawyers, was 
shown frequently. The law school of which he was dean was 
a source of great pride to him. One day, while hearing a case 
in the Federal court-room, he saw five law students whom he 
knew, sitting in rear seats. "Bring five chairs up here," he 
said to an attendant, and then told his secretary to invite the 
five students to sit beside him, a mark of distinction and honor. 
The youngsters thought the secretary was joking, but he pointed 
to the chairs and convinced them. So the five, embarrassed 
but elated, took seats beside the Judge. "I thought that you'd 
be able to hear better up here," was Taft's explanation. 

Another act of kindness was shown to a young attorney 
from Kentucky who had brought suit for damages against a 
railroad company in behalf of a woman who had been injured 
by a train. The attorney's petition was poorly prepared, so 
poorly 1^ at it would not have stood the test of a hearing. "1 
give you leave to amend that petition," said Judge Taft, and 
he pointed out wherein the paper was defective. The attorney 
did not appear to understand what was required of him. Judge 
Taft detected the trouble. "Let me see that petition," he said. 
He struck out some sentences in the document and made in- 
terlineations with a pencil. Then he handed it to the attorney 
for the railroad, a man of prominence in legal circles. "1 
guess that's all right," he remarked, and the railroad's rep- 
resentative, who was prepared to make technical objection, 
reluctantly accepted Judge Taft's disposition. The young fellow 
won the case. 



Ready to Acknowledge Error. 

As a Judge, Taft earned the reputation of being fearless and 
just, and it was this reputation which accounts in part for 
his popularity in Ohio. He was never afraid to strike at evil 
and always ready to accept full responsibility for his judicial 
decisions and orders. Yet he was as ready to acknowledge any 
error on his part, and a remarkable instance is recorded where 
he actually apologized to a litigant for uncomplimentary allu- 
sions made from the bench. The town of Hartwell, in Hamil- 
ton Count y, Ohio, became involved in a dispute with a rail- 
road company. There were writs of injunction and mandam- 
us and other proceedings sought by the town authorities or 
the company. The Mayor of Hartwell turned the hose on work- 
men -who tried to lay rails at night. When one aspect of the 
case was brought before Judge Taft he took occasion to criti- 
cise the Mayor severely. The Mayor, willing to be made a 
ictim of the court's power to punish for contempt, wrote a 
etter to Judge Taft complaining bitterly that the court's refer- 
ence 'to himself was' obiter dictum and was entirely outside the 
court's powers. The Mayor confidently expected to be haled 
before the bar. To his surprise, however, he received a letter 
from Judge. Taft admitting that he had gone farther than he 
should in his comments on the Mayor's attitude and asking the 
Mayor to accept his apology for what he had said. 



WILLIAM E. TAFT AS JUDGE. 265 

That was Talc ail through. Conscientipusly believing; or^-- 
inally that it was his duty to rebuke the Mayor, he saw the 
matter in a new light when an argument to show that he was 
wrong was presented and he made haste to correct the error, 
and, to emphasize the change of view, added an apology. 

The Stern and Fearless Magistrate. 

Another instance shows Tai't as the embodiment of stern 
justice, knowing his duty and permitting no interference with 
its fulfillment. An elderly man had been convicted of pension 
frauds in Judge Taft's court. Under the law it was optional 
with the Court to impose a sentence of imprisonment in a 
penitentiary or a jail. A son of the convicted man knew Judgv 
Taft and had been on friendly terms with him. Presuming- 
on their friendship, the son saw Judge Taft privately and pro- 
ceeded to give reasons why the father should be sent to jaii 
instead of the penitentiary. Judge Taft was angry. In Ian 
guage that left no doubt as to his state of mind, he told the 
son that any repetition of the attempt to influence him in a ju- 
dicial matter would result in a term in jail for contempt. 
Crestfallen and humiliated, the son went away, believing that 
his father was certain to get a penitentiary sentence. 
Judge Taft sent the convicted man to jail. Those Who know 
his peculiar judicial fitness do not need to be told that Taft 
was not influenced in any way whatever by the son's plea. 
He considered the matter on its merits and declined to allow 
his mind to be prejudiced against the father for the son's in- 
discretion or in the father's favor by the son' distress. 

Justice Tempered with Mercy. 

It was not often that Judge Taft showed anger, but when 
he did there was nothing 1 half-hearted about it. A man who 
had heard some idle talk about Taft came to tell the Judge 
of it. People were saying, he asserted, that Taft would not 
do full justice to one side in a pending case. "You get out of 
here or I'll throw you out," he shouted. As a matter of fact, 
the case was not before Taft's court. He hated a meddler. 
He would not tolerate a tattler. 

When Judge Taft holds the scales of justice he holds them 
squareJy. With it all, however, he is actuated by a spirit of 
consideration for the unfortunate and ready to show mercy 
whenever his sense of right tells him it is proper to do so. 
Toward the end of his career as a Federal Judge . a young 
man was convicted in his court of violating the postal laws, 
Judge Taft was convinced that the offense was due more to 
ignorance than to criminal intent and he suspended sentence. 
"Come back to me in six months," he said to the defendant. 
The Philippine War was on when the six months expired. The 
young fellow who had been convicted appeared before Judge 
Taft with the laconic introduction, "I've come." "I see you 
have," said his Honor, "but what can I do for you?" Judge 
Taft had nearly forgotten the circumstance, but it was recalled 
to his recollection by attaches of the court. Then he put 
the young man through an examination as to what he had 
been doing in the probationary period and received satisfac- 
tory answers. "And what are you doing now?" he asker!. 
"I am trying to get into the army," was the answer. "Will 
they take you?" "I think so, but I told them I couldn't enlist 
until I'd seen you." "Well," said Judge Taft, "you show 
yourself to me here with Uncle Sam's uniform on and you 
needn't come after that." The boy enlisted and his sentence 
was remitted. 

A Labor Leader's Confidence in the Jadg* Who had Jailed 

Him. 

It was Taft who rendered the first opinion upholding the 
validity of the Sherman Anti-Trust law, and it was Taft who 
sent a labor leader to jail for contempt in interfering with 
the operation of a railroad then in the hands of the court 
over which Taft presided. The man whom he jailed was Frank 



eee mr. taft in the orient, 

Phelan, a lieutenant of Eugene Debs in the American Railway 
Union. There were murmurs in Cincinnati that Judge Taft 
would not leave the bench alive if he sent Phelan to jail. 
Members of the order to which Phelan belonged crowded the 
court-room with identifying badges conspicuously displayed. 
Judge Taft read his opinion in the case and ordered that Phelan 
be confined in jail for six months. Then he stepped from the 
rostrum and went to his private room. There was not the 
slightest sign of trepidation in his manner or a hesitating note 
in his voice as he delivered his judgment. 

Months after, Phelan, released from jail, went to Ludlow, a 
suburb of Cincinnati, where most of the railroad men who had 
gone on strike at his command resisted. The agitator who had 
counseled violence of a radical kind was touched by the suffering 
among the families of the strikers, many of them still out of 
employment. Phelan wanted to help them, and curiously enough 
the man to whom he applied for advice and assistance was 
Judge Taft. He called at the Judge's office in company with 
another man and was received without any delay. "Hello ! 
Phelan," said Judge Taft, "what can I do for you?" A gentle- 
man who was present on that occasion vouches for the state- 
. ment that Phelan explained his business in words somewhat to 
this effect : "Judge, I came to tell you that I never realized 
what great suffering I would create until I went to Ludlow 
this morning. I'm willing to serve another six months or a 
year if you'll help me to get work for these men. 
All those who went out on strike and who testified that 
they went out through S3 r mpathy only, told an untruth, and 
so did I, for I was sent here by Debs to take these men out 
as I saw fit." 

But strongly as his sympathy was aroused by what Phelan 
said, Judge Taft held that it would be improper for him to 
make any suggestion to the railroad company to give employ- 
ment to its former employees. "I can't tell the railroad people 
how to run their business," he said. This incident is told merely 
to show the wonderful human sympathy which Taft possesses 
and which he makes people understand. Phelan, in spite of 
the scoring and the punishment he had received from Taft, 
felt that he would find the stern judge a kind friend, and his 
reception proved that he was not mistaken. Taft never bears 
malice. He is as willing to forget as he is to forgive when 
satisfied that a fault which he condemned had been honestly 
atoned for. 

Long years of work on the bench did not produce in him 
the idea that he is not as other men. There is no false dignity 
about him. Off the bench he is as jovial as could be. While 
on the bench he maintained a dignity that was impressive, but 
not repellant. Whatever he does, he does as part of the day's 
work, not hampered by any ideas of his greatness. He is too 
busy to think about his own personality. 



THE STATES31ANSHIP OF WILLIAM H. TAFT IN THE ORIENT. 

For the last ten years the policy of the United States in re- 
gard to its position and future as a Pacific power has been 
marked by a degree of vigor and directness comparable onry 
with its attitude toward all questions involving the application 
or interpretation of the Monroe Doctrine. And rightly so ; be- 
cause among the great powers whose territories border on the 
Pacific Ocean, the United States is most intimately concerned in 
the future of that vast area around which are grouped nine hun- 
dred millions of people, or more than half the population of the 
globe. 

Importance of the Orient and Oriental Markets. 

Speaking in the United States Senate in 1852, William H. Sew- 
ard said: "Henceforth, European commerce, European politics, 
European thought, and European activity, although actually 
gaining force, and European connections, although actually be- 



MR. TAFT IN THE ORIENT. 267 

coming more intimate, will, nevertheless, relatively sink in im- 
portance ; while the Pacific Ocean, its shores, its islands, and 
the vast region bej-ond will become the chief theater of events in 
the world's great hereafter." The purchase of Alaska, which 
was the work of Seward, was dictated by a desire to grasp the 
opportunity to become the foremost of Pacific powers ; the ac- 
quisition of Hawaii was a testimony to the necessity of exclud- 
ing foreign control from a commanding position in mid-Pacific;, 
the taking of the Philippines was justified on the ground that we 
needed an emporium of trade and a place of arms to be ready 
against the time when other powers might be moved to dispute 
the right of the United States to enjoy equality of commercial 
opportunity in the great markets of Eastern Asia. 

We have made the construction of a canal across the Isthmus 
of Panama a national enterprise, primari^ because it was needed 
to enable all sections of our country, and the Southern States, 
most of all, to have the full benefit of the present and future 
profit of the commerce of the Pacific. That our Government re- 
gards this enterprise as one of supreme importance to the na- 
tional welfare has been sufficiently demonstrated by the uncom- 
promising vigor and resolution with which it has treated the ob- 
stacles interposed to its execution. If the extension of the influ- 
ence of the United States has been anywhere pursued in obedi- 
ence to the call of "manifest destiny," it has been on and around 
the Pacific Ocean. If there be one point more than another 
where a check to our influence would dwarf the role which this 
Republic is fitted to play on the stage of history it would be 
here. 

The Open Door Insisted Upon. 

President Roosevelt recognized that fact when he declared 
that sovereignty has its duties as well as its rights, and that no 
local Central American Government would be permitted in a 
spirit of Eastern isolation to close the gates of intercourse on 
the great highways of the world. Among these gates, the Pan- 
ama Canal is destined to occupy the most prominent place. In 
the words of President Roosevelt : "It is to alter the geography 
of a continent and the trade routes of the world." But if no 
South American State can be permitted to encumber the trade 
passing by way of Panama, with such unjust relations as would 
prevent its general use, neither should it be possible to have the 
great neutral markets to which this trade is destined monopo- 
lized without even the pretense of rightfully acquiring sover- 
eignty by any power which can bring enough military force to 
overawe the power already in possession. 

It was this consideration which prompted the memorable dec- 
laration of Secretary Hay. eigmt years ago, in regard to the open 
door in China : "The policy of the Government of the United 
States is to seek a solution which may bring about permanent 
safety and pea.^e to China, preserve Chinese territorial and ad- 
ministrative entity, protect all rights guaranteed to friendly pow- 
ers by treaty and international law, and safeguard for the world 
the principle of equal and impartial trade with all parts of the 
Chinese Empire. In other words, the United States Government 
is opposed to the partition of China, and asserts that it has the 
right to a voice in the settlement of China's future." 

The acquisition of the Philippines doubtless tended to give 
the American people a new perception of the magnitude of their 
interests In Eastern Asia, and the Boxer rising of 1900. with ali 
its attendant obligations, brought the problem of the Far East 
home to our people in a way that perhaps no other combination 
of circumstances could have done. But, apart from all this, an 
educational influence had been at work which impressed on the 
public mind the necessity of this country playing as large a part 
in the unsettled questions of Asia, as its commrreial and indus- 
trial future demanded that it should. Had the colonial Empire 
of Spain not fallen to pieces before the assault of the naval and 
military power of the United States, had there been no acute 
erisis in Chinese affairs demanding our intervention in common 
with the other treaty powers, there would still have come to our 
people a perception of the fad thai they could not afford to sit 
idly bj while the markets of Asia were being gradually closed 



366 MR. TAFT IN THE ORIENT. 

against them by powers whose interests there were less in mag- 
nitude than their own, and whose right to extend a foreign colo- 
nial system in defiance of the treaty rights of other nations 
rested on no solid basis of necessity or equity. 

Oriental Trade Opportunities Especially Important to the 
United States. 

The rapid increase of the exports of American manufactures 
of late years has furnished convincing evidence not only of the 
expansion of the productive capacity of the country, but of the 
necessity of maintaining for the benefit of future generations 
all the outlets for the results of American skill and labor which 
they now command. He must be a very shallow student of re- 
cent history who fails to see that the conquest of markets by 
military force is a phase of international rivalry which must 
be reckoned with no less than their acquisition by the improve- 
ment of processes of manufacture and the widening of the field 
of commercial enterprise. It will avail us little to be able to 
produce more skillfully or economically than our rivals if, they 
have been ahead of us in the creation of a sphere, of territorial 
influence over which they can throw the protection of an ad- 
verse tariff reinforced by constant official pressure in favor of 
their own manufactures. 

It is such considerations which have inevitably brought the 
United States to the position which it now occupies in regard 
to affairs in China. Had the thinly veiled designs of the great 
military powers of Europe against that ancient Empire been 
left to work themselves out, one certain result would have been 
to nullify the advantages we possess en the Pacific, and render 
meaningless every effort we have made to confirm our influence 
as the greatest of Pacific powers. The natural outcome of these 
designs could have been nothing less than the partition of the 
most populous of empires and the richest of all the unexploited 
regions of the earth among the great powers of Europe, to the 
destruction of all the rights of trade which we have acquired by 
treaty with that empire, and to the exclusion for all time of our 
influence and enterprise from the gigantic and immensely profit- 
able undertaking of equipping China with the appliances and 
supplying it with the products of modern civilization. v It is not 
the disposal of the cruder products of the field and the mine that 
need give us any concern. Other nations must buy these to the 
extent that they fail to extract them from their own soil, and 
were we content to be exporters merely of cotton, grain, oil, cop- 
per, and pig iron, we need give little thought to the way in which 
the policy of other nations may affect our possible markets. But 
this country is destined to be the greatest producer and exporter 
in the world, no less of manufactured articles than of the great 
primary products which are the foundation of its wealth and 
greatness. 

Were the Middle Kingdom, with all its possibilities and oppor- 
tunities, part of the continent of Africa, we might have an 
equally strong commercial interest in its future, but we should 
hardly be justified in offering to its partition a more vigorous 
resistance than we made to the passag'e of Madagascar under 
French sovereignty and the consequent disappearance of a highly 
promising market. But in the case of China the commercial in- 
terest is reenforced hj political considerations of acknowler >ed 
potencjr, by reasons of policy which are founded on a due regard 
for the free and full development of our national greatness. In 
short, the place which the United States occupies in the world 
and the place which it should occupy in future ages is equally 
challenged by every step made toward the dismemberment of 
China. It would be for us a disaster of the first magnitude to 
have on the other side of the Pacific Ocean another Europe fac- 
ing us, with hundreds of thousands of Chinese mercenaries bear- 
ing modern arms and trained by European soldiers as a standing 
army for each of the spheres of European sovereignty. Such a 
state of things would be a menace to the peace of the world and 
to the interests of the United States more serious than any other 
combination of events which history can possibly have in stor«. 



MB. TAFT IV THE ORIENT. 269 

Mr. Taft as Our International Reconciler. 

With the foroe of these considerations, no American public 
man has been so strongly impressed as William H. Taft, and 
none has had so many opportunities for their thorough investi- 
gation. He has learned by observation on the spot what are the 
enormous possibilities for commerce offered by a new and pro- 
gressive China ; he has been able to measure at close range the 
expanding capacity of the Japanese market for American prod- 
ucts. Personal intercourse with the men who direct the policy 
of both countries has given Mr. Taft an insight into the influ- 
ences which are shaping the destiny of the peoples of the Far 
East, such as but few of his contemporaries possess. As a result 
of one of the frequent calls made upon him to fill the role of in- 
ternational reconciler, he has appeared as a kind of semi-official 
envoy both in Japan and China at a time when an authoritative 
statement of the relations between this country and both of 
them was invested with unusual importance. 

The addresses which Mr. Taft found occasion to make in 
Japan were as notable for their unqualified repudiation of the 
idea that there existed, any serious cause of difference between 
the two nations as the}' were for a frank and dignified assertion 
of the principles of international conduct, respect for which the 
United States holds to be demanded alike by the best interests 
of all competitors for the trade of the Far East, and by the 
welfare of the people with whom that trade must be conducted. 
The Chinese magnates who cooperated to make Mr. Taft's second 
visit to Shanghai a memorable event greeted him in terms seldom 
applied to a foreigner, and the Chinese merchants of Shanghai 
combined to make the visit replete with special marks of honor 
for a guest who represented to them the justice, the disinterest- 
edness, and the magnanimity of the American people. 



"THE BEST EQUIPPED CANDIDATE WITHIN THE MEMORY 
OF THIS GENERATION." 

[From the Philadelphia Public Ledger, Ind. Dem.] 

Of all the Presidential candidates within the memory of this 
generation, Taft is unquestionably the best equipped, in training 
and experience and in wide and close contact with large affairs. 
In one important respect his equipment is unlike that of any of 
the Presidents, no one of whom had ever served on the bench. 
With the exception of those nominated on their military records, 
and two or three who have been governors of their States, the 
Presidents have been men whose political training was in the 
legislative branch. Taft was never in Congress, or even in his 
State legislature. He is wholly without personal experience in 
what is called practical politics. He was educated for the bar; 
early became a judge ; the whole trend of his thought and of his 
ambition has been in the line of the judiciary, and his ingrained 
judicial temperament it was that made him so conspicuously 
useful and successful in the many difficult administrative prob- 
lems he was later called upon to solve. 

It was a distinct sacrifice he made when President McKinley 
took him from a life position that he enjoyed, and that was in 
line of his dearest hopes, to lay upon him the burden of estab- 
lishing peace and order in the Philippines. The judgment, tact, 
and skill with which he carried on that great task; the candid 
diplomacy with which he smoothed away perplexing obstacles ; 
the unselfish devotion with which he has upheld the interests of 
those far-away people in the face of indifference at home, were 
an honor to the nation. The same qualities of a wise adjudicator 
have been repeatedly at the service of the country. In Cuba, in 
Panama, in Japan, it has been necessary only to ''send for Taft." 
Misunderstandings are cleared up and difficulties vanish before 
this gracious personality, this calm, clear, disentangling mind. 
His intellectual integrity and disinterestedness have been as un- 
mistakable as his quiet strength, his unswerving sense of justi <>, 
his absolute honesty. It is not a mind that moves by impulse or 
in startling flashes; it is a mind well poised and of singular 
lucidity, that reaches its results bjr logioal principles, which do 
not antagonize, but oonvinoe. 



270 COMPARISON OF CANDIDATES. 

THE TWO CANDIDATES COMPARED AND CONTRASTED. 

Democratic Analysis of the Record and Qualifications of the 
Leading Candidates for the Presidency. 

[From the Philadelphia Ledger, Ind. Dem., July 13, 1908.] 

The character of the two conventions tells something- of the 
difference in the underlying spirit of the two platforms, but the 
contrast between the two types of men standing as candidates 
for President is vastly more significant. It is a contrast so great 
that all other considerations are obscured by it. 

In general training and in administrative experience Mr. 
Taft is better equipped for the Presidency than any candidate 
within half a century. All his mature life has been spent in the 
public service, but never by his own seeking. He has been 
intrusted successively with many most difficult tasks — as Judge, 
Commissioner, Governor, Secretary — requiring wide knowledge, 
clear judgment, discretion, firmness, tact, and every one of them 
he has fulfilled with a success that commanded admiration and 
inspired confidence. He has shown himself a man of essentially 
judicial temperament, not merely learned in the law, but 
grounded in the broad principles of justice and equity — an emi- 
nently systematic mind, that considers, weighs, arranges and 
adjusts and moves by logical process to. clear conclusions. While 
he has never faltered before a public duty, he has never asserted 
himself, but has sunk his own ambitions in the public service for 
which he has been sought. A calm, careful, kindly, quietly force- 
ful man, he makes no fuss, but accomplishes results. If Taft is 
Roosevelt's candidate, so much the more credit to Roosevelt for 
choosing a man in so many ways different from himself. r 

In contrast with Mr. Taft's record of successful achievement, 
Mr. Bryan has practically no record whatever, except that of a 
public speaker, a politician and a candidate. His actual public 
service was confined to two terms in the House of Representa- 
tives, where he acquired some familiarity with the politics of the 
•caucus, but manifested no inclination to serious study. He was 
:an unsuccessful candidate for the Senate, and then took to 
political journalism ; was sent as a delegate to the Democratic 
•convention of 1896, made a silver speech that turned the heads 
•of the crowd, was nominated for President — and defeated. This 
3 s the sum of Mr. Bryan's experience in public life, apart from 
his travels as a lyceum lecturer and newspaper writer and his 
incessant activity in cultivating his political interests. He has 
never held a post of public responsibility, even in the legisla- 
tive branch ; in administrative duties he is wholly untried, except 
as concerns the successful organization of his own candidacy. 
He has made this a profitable profession, and has developed 
great skill in the art which Governor Pennypacker applauded 
in Quay — "the management of men in masses." But that is a 
qualification for a "boss," not for a President. 

Taft's peculiar experience has come to him because he was 
recognized as fitted for it. Bryan has had no such opportunities. 
This is not only because he has been always in opposition, but 
because his habit of mind does not suggest his responsible em- 
ployment. His intellectual character is the reverse of Taft's. 
He is active, ambitious, assertive. He has the mental alertness 
of the Western journalist, eager to exploit each new idea, with- 
out stopping to go to the bottom of it, and as ready to drop it 
and turn to something else. He has shown no power of analysis, 
no grasp of fundamental principles, no capacity for serious 
study, no sense of logical proportion. In all his treatment of 
large public questions he is superficial, rhetorical, uncertain and 
untrustworthy. The only broad grasp that he has displayed is 
upon the machinery of practical politics, and even here, with 
his individual mastery, he is dangerously arbitrary and erratic. 
Twelve years of persistent self-seeking have not brought dis- 
cipline to a mind that is fundamentally ill-trained. 

If we assume, as we may, that the nation will, in the long 
run, determine its own policies, and expect the President to 
execute them, which of these two contrasted types *is the better 
fitted for such duty? This is now and will become increasingly 
the issue of the campaign. It is not really a question of Repub- 
lican or Democrat. It is a question of Taft or Bryan, with all 
that each represents. 



COMPARISON OF CANDIDATES. 271 

[From the New York Journal of Commerce, Dem., July 10, 1908.] 
Bryan was the predestined candidate, foreordained by his 
own authority. 

To his personality, which was sufficient to carry the nomina- 
tion, he had to add a "platform" wherewith to carry the elec- 
tion. Being' a personal attachment, it should rather be called 
a net for catching- votes. Though many hands were permitted 
to twist and tangle the strands at Denver, the meshes were de- 
vised at Lincoln, Nebraska, and the "platform" as well as the 
candidate is Bryan-made. Having captured the party he had the 
right to prescribe the articles of its creed. Instead, of being a 
clear and condensed statement of principles, it is the longest of 
recorded documents of its kind, with a lure for every form of 
discontent and a promise for every eager demand. It is meant 
to catch and to hold all for whom a bait could be provided, 
except those who think and reason, form convictions for them- 
selves and act upon principles that they understand. It is a 
tissue of appeals and not a body of principles. It is not an 
outline for practical legislation or a judicious administration, 
but a lure for votes and will be worthless when the election is 
over. It is not intended to last beyond that. 

Will the people of the United States be deluded by the 
monstrous claims and the fruitless promises of William J. Bryan 
at this late day? His appearance is not meteoric as when he 
shone forth with his crown of thorns and cross of gold at 
Chicago twelve years ago. He is a familiar figure and his 
present exhibition has been worked up with theatrical artifice. 
It is pyrotechnic and not meteoric, and all the sticks and strings 
and wheels are visible to the eye. The tumult and the shout- 
ing cannot be kept up for months and the people are liable to 
grow sober and go to thinking. Every constructive and conserva- 
tive influence will set to work to save the Government from 
falling into the keeping of a spangled political acrobat and 
mountebank. His elevation to the head of a nation that has had 
a line of presidents, worthy at least of respect, for a hundred 
and twenty years, would be too absurd for a people with a sense 
of dignity and decorum as well as of humor. He should go to 
a defeat this time that will make any subsequent pretension 
grotesque^ even for him. 

[Erom the New York Evening Post, Dem.] 

Every one knows where Mr. Taft will always stand ; no one 
can tell from year to year where the unstable Bryan will land. 



This country lias and this country needs better paid, 
better educated, better fed, and better clothed workingmen, 
of a higher type than are to be found in any foreign country. 
It has and it needs a higher, more vigorous, and more pros- 
perous type of tillers of the soil than is possessed by any 
other country. — President Roosevelt at Minneapolis, April 4, 
1903. 

I believe it to be highly beneficial and entirely lawful 
for laborers to unite in their common interests. They have 
labor to sell, and if they stand together they are often 
able, all of them, to command better prices for their labor 
or more advantageous terms of employment than when deal- 
ing singly, for the necessities of the single employee may 
compel him to accept any terms offered hi in. The accumu- 
lation of funds for the support of those who propose to 
enter into the controversy with the employer by striking 
is one of the legitimate objects of such organization. Its 
members have the right to appoint oflieers who shall 
advise them as to the course to be taken by them in their 
relations to their employer, and if the members choose to 
repose sueh authority in any one (the otlieers may order 
members, on pain of expulsion, to join a strike. Having left 
their employment they have the right, by persuasion and 
other peaceable means, to induce those who would take 
their places to join the strike and their union. They may 
not do this by violence, by threats of violence, or by any 
Other condnet equivalent to duress. It is only when the 
object is not betterment of the terms of their employment 
or some other lawful purpose, but is for an unlawful pur- 
pose or where the menus they use are unlawful that they 
can be properly restrained by law. —Hon. Win. 11. Taft. 
in correspondence with President Llewelyn Lewis, of the 
Ohio Federation of Labor. 



CAMPAIGN CONTRIBUTIONS AND PUB- 
LICITY, WITH REFERENCE TO RE- 
CEIPTS AND EXPENDITURES. 

Much has been said during the past few weeks upon the 
question of campaign contributions and publicity with reference 
thereto. A careful analysis, however, of the utterances and 
pledges of the two candidates, the two National committees, 
and the law makers of the two parties upon this subject shows 
that the Democratic promises have been in all cases vague and 
specious and in such terms as to really suppty little of the pub- 
licity which they purport to supply ; while the Republicans have 
already actually prohibited, through Republican legislation in 
Congress, corporation contributions to campaign funds and pro- 
vided for absolute publicity far in excess of that vaguely prom- 
ised by the Democratic candidate and committee. 

The Bryan-Taft Correspondence on Publicity. 

The public campaign for publicity was begun by Mr. Bryan,, 
when on May 27, 1908, he sent to Mr. Taft the following tele- 
gram : 

"I beg to suggest that, as leading candidates In our respective par- 
ties, we join in asking Congress to pass a bill requiring publication of 
campaign contributions prior to election. If you think best we can ask 
other candidates to unite with us in the request. 

To this Mr. Taft replied on May 26th: 

Your telegram received. On April 30th last, I sent the following 
letter to Senator Burrows, the Chairman of the Committee on Privileges 
and Elections of the Senate: 

"My dear Mr. BurrowB : I sincerely believe that it would greatly 
tend to the absence of corruption in politics if the expenditures for nomi- 
nation and election of all candidates and all contributions received and 
expenditures made by political committees could be made public, both 
in respect to State and National politics. For that reason I am strongly 
in favor of the passage of the bill which is now pending in the Senate 
and House, bringing about this result so far as national politics is con- 
cerned. I mark this letter personal because I am anxious to avoid as- 
suming an attitude in the campaign which it is quite possible I shall 
never have the right to assume, but so far as my personal influence is 
concerned I am anxious to give it for the passage of the bill. 

Very sincerely yours, WILLIAM H. TAFT. 

Since writing the above, in answer to inquiry, I have said publicly 
that I hoped such a bill would pass. 

Corporation Contributions. 

The next step in the Democratic campaign with reference to 
election funds was the insertion in their platform adopted at 
Denver in July, 1908, of the following plank : 

We pledge the Democratic party to the enactment of a law pro- 
hibiting any corporation from contributing to the campaign fund and , any 
individual from contributing an amount above a reasonable amount and 
providing for the publication before election of all contributions above 
a reasonable minimum. 

In taking this second step with reference to campaign funds 
and pledging the Democratic party to the enactment of a law 
prohibiting any corporation from contributing to the campaign 
fund, Mr. Bryan and his associates seem quite as late as Mr. 
Bryan was personally in his proposal to Mr. Taft, since it is 
a fact that the Republican party in Congress had, more than 
a year before the meeting of the Democratic convention, passed 
in both houses and enacted into law the very proposition which 
the Democracy pledged themselves to accomplish, viz. : "prohib- 
iting any corporation from contributing to a campaign fund." 
The law enacted by a Republican House and a Republican Senate 
in January, 1907, and signed by a Republican President on Jan- 
uary 26, 1907, did the very thing demanded by the Democratic 
convention of 1908, and did it eighteen months prior to the 
meeting of that convention. The Act passed in January, 1907, 
by a Republican House and a Republican Senate and signed by 
a Republican President January 26, 1907, is as follows : 

272 






PUBLICITY OF CAMPAIGN CONTRIBUTIONS. m 

Be it enacted fry the Senate and House of Representatives of the 
United States of America in Congress assembled, That it shall be unlawful 
for any national bank or any corporation organized by authority of any laws 
of Congress to make a money contribution in connection with any election 
to any political office. It shall also be unlawful for any corporation what- 
ever to make a money contribution in connection with any election at which 
Presidential and Vice-Presidential electors or a Representative in Congress 
is to be voted for or any election by any State Legislature of a United 
States Senator. Every corporation which shall make any contribution 
in violation of the foregoing provisions shall be subject to a fine not ex- 
ceeding five thousand dollars, and every officer or director of any cor- 
poration who shall consent to any contribution by the corporation in 
on of the foregoing provisions shall upon conviction be punished 
by a fine of not exceeding one thousand and not less than two hundred and 
fifty dollars, or by imprisonment for a term of not more than one year, 
cf both such fine and imprisonment in the discretion of the court. 

Thus in the second step in the Democratic campaign with 
reference to political funds, the}- find themselves following along 
lines in which the Republicans had already taken action. 

Publicity Before Election. 

Not only ha,d the Republicans, long before this recommen- 
dation of the Democratic National convention enacted a law 
prohibiting corporation contributions to campaign funds, but the 
Republican party in the House had, by unanimous vote of its 
members, passed an Act requiring complete publicity of all cam- 
paign contributions, this publicity to be made through state- 
ments filed with the Clerk of the House of Representatives 
NOT LESS THAN TEN DAYS BEFORE THE ELECTION FOR 
WHICH THESE FUNDS WERE CONTRIBUTED. Every vote 
cast for this bill was cast by a Republican, and every vote cast 
against it was cast by a Democrat. 

While the Democratic vote was ostensibly cast against the 
bill because of the fact that it required a report from the Census 
with reference to the number of votes cast in Southern States 
and a comparison thereof with the number of white and colored 
citizens of voting age, the fact remains that the Democratic 
party in Congress, irrespective of sectional lines, preferred 
to sacrifice complete publicity in campaign contributions and 
expenditures rather than couple with it publicity regarding the 
suppression, by their own party leaders, of the elective franchise 
as guaranteed by the Constitution of the United States. 

Democratic Pledge of Publicity Relates to Only a Fart of It* 

Fund. 

Another important contrast between the methods proposed 
by the Democratic candidates and committee and those 
proposed by the Republican candidates and committee is in 
the EXTENT to which publicity is to be carried in reference 
to the amount of contributions received. The Democratic com- 
mittee, on the recommendation of Mr. Bryan and Mr. Kern, 
passed a resolution at its meeting at Fairview, Mr. Bryan's 
residence, to the effect that "it will accept no individual con- 
tribution above $10,000, and that it will make public before 
election all individual contributions above $100." This promise, 
therefore, is merely that the committee will make public before 
election a statement of all contributions ABOVE ONE HUN- 
DRED DOLLARS in amount, but it makes no promise that any 
statement will be made of the total sum received, the sums 
which it proposes to publish being simplv "ALL INDIVIDUAL 
CONTRIBUTIONS ABOVE ONE HUNDRED DOLLARS." Thus 
all contributions reaching the committee in checks or sums less 
than $100 would not be subject to publication or announcement 
of any kind. Under this proviso of the Democratic publicity 
plan, those desiring to avoid publicity in contributions in excess 
of $100 could readily do so by dividing the proposed gift into 
as many separate contributions of $100 or less as might be re- 
quired to make the total of the larger sum. 

As illustrating the misleading and vague nature of these 
Democratic promises, it is not improper to call attention to 
the fact that Mr. Bryan, in the same issue of the Commoner 
in which he announces with a flourish of trumpets this action 
as having been taken upon the recommendation of himself and 
Mr. Kern, makes an appeal to the farmers of the United States, 
I 






274 PUBLICITY OF CAMPAIGN CONTRIBUTIONS. 

an appeal signed by himself and Mr. Kern as the candidates 
of the Democratic party, for contributions of $100 or less, 
saying : "There are hundreds of thousands of farmers who are 
abundantly able to contribute to the campaign fund ; there are 
thousands who could give $100 apiece without feeling it ; there 
are tens of thousands who could give $50 apiece without feeling 
it, and still more who could give $25 or $10 or $5." He asks 
the farmers to make contributions through his own paper, the 
Commoner, to a farmers' fund to be turned over to the Demo- 
cratic National Committee. The last Census of the United States 
shows that the total number of farms in the United States (and 
therefore the total number 'of farmers) was, in 1900 5,739,657 ; 
and presumably there must be at the present time over 6 million 
farmers. Supposing one-third of these to be Democrats, this 
would give two million individuals appealed to by Mr. Bryan 
and Mr. if era to give sums of $100 downward. Should one-half 
of this number respond to the appeal the number of contri- 
butions from the farmers alone would thus be 1 million. Sup- 
posing that their contributions were the lowest named by Mr. 
Bryan and Mr. Kern — $5 each — this would give from the farmers 
alone a campaign fund of $5,000,000, NOT ONE PENNY OF 
WHICH IS PEOPOSED TO BE IN ANY WAY BEPOETED BY 
THE DEMOCEATIC NATIONAL COMMITTEE in its vaunted 
publicity of campaign contributions, and this, of course, would 
also leave all contributions from all other classes when be- 
low $100 in amount, likewise a matter of absolute secrecy with 
the Democratic National Committee. 

Contrast this incompleteness of campaign publicity with 
the plan proposed by the bill which (printed in full on another 
; page of this volume) passed the Eepublican House of Eepre- 
'sentatives May 12, 1898, being supported by every Eepublican 
rpresent and voted against by every Democrat whose vote 
Was recorded. That bill provided that the treasurers of 
political committees should, not less than 10 days before the 
election, file with the Clerk of the House of Eepresentatives a 
statement showing the name and address of each person, firm, 
association, or committee which had contributed $100 or more; 
also, THE TOTAL SUM OF ALL CONTEIBUTIONS IN AMOUNTS 
LESS THAN ONE HUNDEED DOLLAES, and, third, THE TOTAL 
SUM OF ALL CONTEIBUTIONS. 

The promise of the Democratic National Committee is merely 
to make public a statement of the amount received in contri- 
butions of MOEE THAN $100 EACH. The plan proposed by the 
Eepublicans and unanimously supported by them, was to make 
public before election the total sum of ALL CONTEIBUTIONS, 
whether contributed in sums below or above the $100 line. 

Publicity as to Expenditures Proposed by Republicans but 
not Mentioned by Democrats. 

Still another and even more striking contrast in the pub- 
licity plans proposed by the Democrats and those by the Ee- 
publicans is found in the fact that the Democrats promise 
publicity merely with reference to contributions, and then only 
as to those exceeding $100 each, but promise no publicity with 
reference to the objects for ivhich any contributions are EX- 
PENDED; while the Eepublican plan proposes publicity as to 
ALL MONEYS received and all moneys EXPENDED. The reso- 
lution of the Democratic committee is absolutely silent as to 

-any publicity regarding expenditures. The Act passed by Ee- 
publican votes in the House of Eepresentatives provides that 
the treasurers of political committees shall report to the Clerk 
of the House prior to the election "an itemized statement," 
showing "the name and address of each person, firm, association 

■ or committee to whom such political committee, or any officer, 
member, or agent thereof has disbursed, contributed, loaned, 
advanced, or promised any sum of money or its equivalent of 
the amount of value of $10 or more and the purposes thereof, 

: and the TOTAL SUM SO DISBUESED * * * where the amount 
or value of such disbursement * * * is less than $10." The 
law of New York State, under which the Treasurer of the Ee- 
publican National Committee promises to conduct his work 



PUBLICITY OF CAMPAIGN CONTRIBUTIONS. 275 

of receipts and expenditures also requires complete statement* 
of "aU receipts, erpendiiiires, disbursements and liabilities of 
the committee and of every officer, member or other person in 
its behalf." 

To sum up: The publicity demand of the Democrats for 
exclusion of corporation contributions to campaign funds pomes 
18 months after a republican Congress had enacted and a Re- 
publican President signed a law prohibiting such contributions; 
Mr. Bryan's belated proposal for an appeal to Congress in 
behalf of publicity came weeks after Mr. Taft had made such 
an appeal to Congress, and the kind of publicity promised by 
the Democratic National Committee includes only a, small propor- 
tion of the sums which it wilt receive, AND NO PUBLICITY 
AS TO EXPENDITURES; while the ."Republican promise of 
publicity includes the total of all sums contributed and COM- 
PLETE PUBLICITY AS TO EXPENDITURES. 

The Publicity Pledges of tlie Democratic Platform and 
Committee. 

The publicity promise of the Democratic platform of 1<M)8 
reads as follows : 

"We pledge the Democratic party to the enactment of a law 
prohibiting any corporation from contributing to a campaign fund and any 
individual from contributing an amount above a reasonable maximum, and 
providing for the publication before elections of all such contributions.'' 

The publicity promise of the Democratic National Committer 
of 11)08, adopted at the suggestion of Mr. Bryan (as stated in 
the "Commoner" of July 24, page 4) is as follows: 

Resolved: That the Democratic National Committee, in pursuance 
to the pledge given in the National platform recently adopted at Denver, 
announces that it will accept no contributions whatever from corporations ; 
that it will accept no individual contributions above $10,000, and that i* 
will make publication before election ol all individual contributions above 
$100. Contributions received before October 15th being published on or 
before that date and contributions received after that date being published 
on the date upon which they are received, and that no contributions above 
$100 shall be accepted within three days of the election." 

Some Occasions When Mr. Bryan did not Desire Publicity. 

Mr. Bryan's anxiety for publicity with reference to campaign 
funds seems to be a matter of comparatively recent develop- 
ment, since charges have been publicly made by the New York 
World and other leading newspapers that Mr. T. F. Evan, in 
Hie campaign of 1904, contributed a large sum to the Demo- 
cratic campaign fund, of which $20,000- was sent to the Demo- 
cratic State Committee of Nebraska, which was attempting 
to elect a Democratic legislature for the purpose of sending 
AI v. Bryan to the Senate ; and although Mr. Bryan made the 
assertion that if it proved true he would personally refund ( hat 
entire sum, no record has been made of any refund by him or of 
a dixproval of the World's charges; while Mayor Dahlman. of 
Omaha, in an interview widely disseminated frankly admits the 
receipt of a contribution from the committee, which he says was 
disbursed by him in the vain effort to swing Nebraska in the 
democratic column, and adds "the money did good, and while 
Eoosevelt carried the State by something like 83,000 majority, 
Berge lost it by less than 10,000 votes. If we had had $15,000 
more we woul 
for Governor.' 

Commenting upon Mr. Bryan's recent attitude with reference 
to contributions to his campaigns, the New York World (Demo- 
cratic) of June 1, 1908. has the following: 

Mr. Bryan says that if Thomas F. Ryan contributed either directly 
or indirectly to the Nebraska campaign fund in 1904 he will personally 
repay every cent of the contribution. Why this sudden sensitiveness In 
regard to Mr. Ryan? Mr. Bryan allowed the silver-mine owners to con- 
tribute $288,000 to his campaign fund in 180G, and there could be no more 
sordid purpose than that which prompted those contributions. Mr. 
allowed William A. Clark, of Montana, to contribute to hi: 
fund, and there has been no more notorious corruptionist in 
politic:. Mr. Bryan gladly accepted political assistance from Richard 
Groker, and there Is no great mystery as to where Mr. Croker got li 
\ candidate who could be grateful to Clark and Croker need ao< I e 
overly squeamish about Ryan. Besides, Mr. Ryan's Nebraska money was 
.■-pent In a most sanctified cause. The Hon. Jim Dahlman proud! 
that he disbursed it.: that, not a cent of it was used to help Parker, and 
that, it was all devoted to the state campaign. Had a fusion Legislaure 
been elected. Mr. Bryan would have been sent to tho United States Sen ite, 
and Mr. Ryan:; tainted contributions would have been doublv sanctified. 



876 PUBLICITY OF CAMPAIGN CONTRIBUTIONS. 

The New York World in its special publication issued in 
February, 1908, entitled "The Map of Bryanism ; Twelve Years 
of Demagogy and Defeat" says, (pages 12, 13 and 14) : 

If the obvious self-interest of the silver miners in the 16 to 
1 crusade carried on by Democrats and Populists in 1SD6 
had been as "well understood as it should have been the namos 
of these men would be as closely associated in the public mind 
with the Silver Trust as Eockefeller's is with oil or Armour's 
is with beef. The people have been made well acquainted in recent 
years with the names of the men interested in beef, in oil, in 
tobacco, in coal, in copper, in iron and steel and in other co:j- 
modrties the production and sale of which is believed to be gov- 
erned by trusts. How many of them know or have heard the 
names of the producers of silver, in whose behalf you, Mr. 
Bryan, worked as zealously as any trust lawyer ever did for 
his client? When the Republicans, after many years of evasion, 
finally refused to take up the cause of the miners, the latter 
naturally sought the assistance of the Populists and the Demo- 
crats, and their reception was more cordial than they had dar cl 
to hope for. As you yourself will doubtless agree, the mot 
powerful advocate thus gained was William Jennings Bryan, of 
Nebraska. 

Here is a list of some of the gentlemen who assisted in fi- 
nancing yonr theory that 50 cents' worth of silver bullion ought 
to be worth a dollar : 

Contributions to Mr. Bryan's Campaign Fraud. 

Mmrcus & Daly, Montana, principal owner of the Anaconda 
Mine. This sum of $159,000.00 represents Mr. Daly's 

own contribution and sums collected by him $159,000.00 

David H. Moffat, First National Bank, Denver, Col 18,000.00 

W. S. Stratton, Colorado, owner of Independence Mine . . 12,000.00 

William A. Clark, of Montana 45,000.00 

Dennis Sheedy, Oolodado National Bank, Denver, CI 7,500.00 

Charles D. Lane, of California 15. 000. 00 

D. M. Hyman, Denver, Col 7,500.00 

Other Colorado mining interests 6,000.00 

Utah mining interests 18,372,70 

The Treasurer of the fund was J. R. Walker, of Wfflker 
Bros., Bankers, Salt Lake City. The chief individual con- 
tributors were as follows : 

J. B Bamberger, President Daly-West Mining Company .... 250.00 

W. W. Chisholme, Mine owner 250.00 

John Beck, Mine owner 500.00 

T. R. Jones, Ore buyer 250.00 

O. J. Salsbury, Mine ov/ner 500.00 

Frank Knox, President National Bank of Rep '■ 100.00 

J. MoGregor, Mine owner 300.00 

Centennial Eureka Mine 1,500.00 

Daly- West Mining Company 500.00 

W. S. McCormick, President Utah National Baak 300.00 

First National Bank of Park City 500.00 

Salt Lake Valley Loan and Trust Company 500.00 

Daly Mining Company 1,000.00 

Bullion-Beok Mine 1,000.00 

P. Farnsworth, Manager, Bullion-Beck Mine 250.00 

R. C. Chambers and others, owners Ontario Min- 2,000.00 

Swansea Mining Company 200.00 

Mammoth Mine 249.00 

Mammoth Mine employees 120.00 

Mammoth Mining Company 1.000.00 

Eureka Hill Mining Company 242.00 

Gemini Mining Company 122.00 

Godiva Mining Company empl 34.90 

Swansea Mining Company 69.00 

John Beck, Mine owner 300.00 

Bullion-Beck Mine employees •.• 537 .00 

Geyser Mine employees .• 116.00 

Horn Silver Mine employees 307.00 

John Beck 

Total contributions of the silver mine owners to your 

campaign fund $288,000.00 

These contributions, as you doubtless know, Mr. Bryan, were 
all recorded in the books of the Democratic National Com- 
mittee, although in yf>ur eloquent appeals for publicity of p 
cal contributions you have never referred to the fact that the 
Silver interests financed your Presidential campaign. 

It i» butler for this country to feed, clothe, and house o,ir 
own labor in lliirt country than to support foreign labor in 
©11: or countries with onr money. — If. K.. Thnrber. 



PUBLICITY OF CAMPAIGN CONTRIBUTIONS. 277 



The !Vew York World on the Ryan Contribution to the 
Nebrauka CampuiKu Fund of 1004. 

[From the New York World. May 30, 1908.] 

After the Democratic National Convention of 1904 had nomi- 
nated Alton B. Parker for the Presidency, William J. Bryan 
returned to his home in Nebraska and began a quiet campaiga 
to secure for himself a seat in the United States Senate. The 
State legislature to be elected in November, 1904, would have 
the choosing- of a senator. It was the hope of Mr. Bryan and 
belief of his friends that by an aggressive campaign Nebraska 
could be carried for the Democracy and that a Democratic legis- 
lature would elect him to the senate. At the St. Louis conven- 
tion Mr. Bryan had assailed fiercely Judge Parker as a candidate 
of plutocratic interests and had attacked by name August Bel- 
mont and other New Yorkers who were backing the Parker 
campaign. After a week of reflection Mr. Bryan announced in 
a formal statement that he would support the ticket, but with 
the following threat : "As soon as the election is over I shall, 
with the help of those who believe as I do, undertake to 
organize for the campaign of 1908, the object being to marshal 
the friends of popular government within the Democratic party 
to a support of a radical and progressive policy to make the 
Democratic party an efficient instrument for securing relief 
from the plutocratic element that controls the Republican party 
and, for the time being, is in control of the Democratic party. " 

Within two months after this declaration, there was accepted 
for Mr. Bryan's interests the sum of $20,000, contributed by 
the prince of plutocrats, Thomas F. Ryan. 

T. S. Allen is the brother-in-law of Wm. J. Bryan. He 
married a sister of the Nebraska candidate. Mr. Allen was 
chairman of the Democratic State Central Committee of 
Nebraska in 1904 and still holds that office. He is the confidant 
and recognized political agent of Mr. Bryan. 

The Democratic National Gampaig-n of 1904 was named 
chiefly by August Belmont and Thomas F. Ryan. Each gave 
$50,000 to start the campaign fund, and after election had to 
make up a considerable deficiency. William F. Sheehan and De- 
Lanoey Nicoll were their principal political advisers. Thonia;-. 
Taggart held the nominal position of chairman of the Committee, 
but the four men named were in control. Mr. Bryan knew 
them, their records, and the interests they had at stake. 

Early in the fall of 1904, Mr. Allen, the brother-in-law of 
Mr. Bryan, came to New York to consult the canrpaign man- 
agers and to solicit funds to promote the Nebraska campaign, 
which had for its principal object the election of Mr. Bryan to 
the United States Senate. Mr. Allen had a conference with Mr. 
Sheehan and Mr. Nicoll. He did not see Mr. Ryan, but the two 
lawyers reported to the financial backers, Ryan and Belmont. 
the progress of the negotiations. As a result, Mr. Ryan agreed 
to contribute personally $20,000 to help along the Nebraska 
campaign. In order to disguise the source of this contribution, 
Mr. Ryan gave his check to Mr. Sheehan, who in turn gave 
other checks for the amount to Mr. Allen. The New Yorkers 
believed they were negotiating with the authorized agents of Mr. 
Bryan. Furthermore, they gained a distinct impression that 
they were to receive something in return for Mr. Ryan's money. 
That something, so they understood, was to be Mr. Bryan's 
open and unqualified support of Judge Parker in the National 
Campaign, and further, that he would let up in his attacks 
on the financiers who were backing the campaign. Mr. Allen 
accepted the $20,000 given by Mr. Ryan and went back to 
Nebraska to spend it in attempts to carry the State for Bryan. 

It is on record that Mr. Bryan did come out in favor of 
Judge Parker, indorsing his candidac} r , and made speeches urg- 
ing radical Democrats to vote for the party's nominee. It also 
is noticeable that in his campaign speeches of the 
Brj r an did not continue his assaults upon Mr. Belmont and the 
other financiers who were conducting the National Campaign. 
Mr. Ryan thought for a time that he was getting his money's 
worth. The election, however, dashed all plans. Not only was 
Judfe Parker defeated, but Nebraska did not sleet a Democratic 



the 
to 



278 PUBLICITY OF CAMPAIGN CONTRIBUTIONS. 

legislature and Mr. Bryan was not chosen to the United States 
Senate. Nebraska, desj)ite Mr. Eyan's $20,000, gave a Bepublican 
plurality of 86,000 for Koosevelt, and Mr. Burkett was sent to 
the senate as a Republican: A few days after the election Mr. 
Bryan published in his paper, "The Commoner," the following: 

'The Democratic party has nothing to gain by catering to organized 
and predatory wealth. It must not only do without such support, but 
it can strengthen itself by inviting open and emphatic opposition to those 
elements. The campaign just closed shows that it is inexpedient from the 
standpoint of policy as it is wrong from the standpoint of principle to 
attempt any conciliation of the industrial despots who are gradually getting 
control of all the avenues of wealth." 

Jn an editorial in the issue in which the above statement 
was printed (May 30, 1908) the World says : 

"Having been an ardent advocate of Campaign Fund Publicity, as 
shown by his telegram to Secretary Taft, Mr. Bryan will presumably thank 
the World for affording publicity to T. F. Ryan's contribution of $ao,000 
in 1904 to help elect Mr. Bryan to the United States Senate from 
Nebraska. This money was turned over to Mr. Bryan's brother-in-law, 
who was his confidential political adviser, as well as chairman of th 
State committee. That it was intelligently expended in promoting 
Bryan's hopeless candidacy we have no doubt, However tainted t 
$20,000 may have been at its source, it was syncitified in the uses 
which it was put, just as the $288,000 was sancitified which the silver 
miners contributed in 1896 to help elect Bryan and create an unlimited 
market for their product. * * * * , Mr. Ryan's $20,000, which went 
to aid Bryanism in 1904, adds a new argument to the already overwhelm- 
ing mass of reasons why campaign publicity should be established by law." 

Bryan's Character as Revealed by the Ryan Boodle Scandal. 

[From the New York Press, June 6, 1908.] 

William Jennings Bryan's statement about the Byan con- 
tribution to the Nebraska campaign in 1904 is all that might 
have been expected from a practical politician trying to take 
the curse off an ugly business. Mr. Bryan could not look the 
facts in the face and deal with them broadly and boldly. All 
that he has attempted to do is to shape the course of the inci- 
dent so as to escape its worst effects on himself and his party. 

So he starts out by giving his own version of what the 
charges are. In order to strengthen his denial of them he 
selects the most reckless accusations about the gift of the 
$15,000 or $20,000 by Mr. Byan and includes them in the indict- 
ment. From the Democratic newspaper most bitterly opposed 
to his renomination he takes the charge that the Byan boodle was 
given to procure his open and unqualified support of Judge 
Parker. 

It is easy for Mr. Bryan to score a point against this charge 
by pointing to the record, which shows that he came out for 
Parker as soon as the nomination was made, supporting him 
just as strongly on the day before election as he did at any 
time before the Byan money was sent to Nebraska. 

The rest of Mr. Bryan's formal statement, which refers 
to the charges that have not been disproved — the meat of the 
dispute — is a sad mess of evasion and quibble. Thus he quotes 
Brother-in-Law Allen and Man Friday Dahlnian as declaring that 
the money in question came from the National committee. '"Mr. 
Allen says tha,t he never saw either Mr. Sheehan or Mr. Byan 
and I have no reason to doubt his word." This does not con- 
flict with the confession of Mr. Dahlman that he sent Mr. Allen 
to New York to raise money for the Nebraska campaig'n and 
that Mr. Allen came back with $15,000. The denial does not 
show that the money could not have come from Byan in sjrite 
of the fact that Allen did not see either Byan or Sheehan. Mr. 
Dahlman does not dispute that the money was Byan's. t Mr. 
Bryan has talked with Mr. Allen about the business, but he 
does not disclose the name of the particular individual who paid 
over the cash that the brother-in-law took back with him to 
Nebraska when he came to Wall street to get it. 

Then the Democratic leader proceeds from this kind of 
quibbling to the assertion that if Mr. Byan did give the money, 
which he still refuses to admit, it was without his knowledge 
or consent. Furthermore, Mr. Bryan declares that in any event 
he "had but a remote personal interest in the Nebraska cam- 
paign that year." If that is so why does he take such an acute 
personal interest in the Byan contribution to the aforesaid 
campaign? And how does the Byan contribution, if it was made 



PUBLICITY OF CAMPAIGN COXTRIBUTIOXS. 279 

without his knowledge or consent to a campaign in which he 
had only a remote personal interest, make him "unwilling to 
be. in the slightest degree, obligated to any favor-seeking cor- 
poration?" If he knew nothing about the Ryan gift to the 
Nebraska fund and had no personal interest in the outcome of 
that contest, he is no more obligated to a corporation by this 
particular Eyan gift than he would be by Ryan boodle sent 
to the Xew York State Committee of his own party or even by 
a Ryan gift to the Republican State Committee of Pennsylvania 
or Virginia. Why Mr. Bryan should go down in his own pocket 
to reimburse Mr. Ryan in the circumstances described by the 
Xebraskan is a question that may well puzzle anybody. 

Yet the Democratic candidate for the Presidency does not 
absolutely bind himself to return to Mr. Ryan the contribu- 
tion of which he had no knowledge made to a campaign in which 
he had only a "remote personal interest." Last week he pledged 
himself to make restitution if Mr. Ryan contributed the money. 
Xow he qualifies this promise by demanding that, as a condition 
of the reimbursement, a particular Xew York newspaper which 
he names shall prove that Mr. Ryan gave the money "with the 
understanding that it would be used in the Xebraska campaign." 
Inasmuch as Mr. P>ryan inferentially reserve* the right to be 
the sole judge of whether the proof is sufficient he has a large 
loophole through which he can welch on his promise to make 
restitution to the Xew York Fortunatus. 

This incident is of no great consequence in itself in a, 
contest which already has been marked by the lavish secret 
use of funds, and it is almost academic in relation to the dead 
past of the 1904 campaign. But it is of immense importance in 
so far as it reveals the character and attitude of tne man 
who will be one of the nominees for the Presidency of th-> 
United States. 

The Publicity Bill Passed by Republican Votes in tbe Home 
and Opposed by all Democrats. 

A bill (H. R. 20112) providing for publicity of contributions 
made for the purpose of influencing elections at which Represent- 
atives in Congress are elected, prohibiting fraud in registrations 
and elections, and providing data for the apportionment of Rep- 
resentatives among the States. 

Be it enacted, etc., That the term "political committee" under the 
provisions of this act shall include the national committees of all po- 
litical parties and the national Congressional campaign committees of 
ail political parties and all committees, associations, or organizations 
which shall in two or more States influence the result or attempt to in- 
fluence fhe result of an election at which Representatives in Congress 
are to be elected. . . . . .. 

Sec 2 That every political committee as defined in this act shall 
have a chairman and a treasurer. It shall be the duty of the treasurer 
to keep a detailed and exact account of all money or its equivalent re- 
ceived by or promised to such committee or any member thereof, or by 
or to any person acting under its authority in its behalf, and the 
\\ome of every person, firm, association, or committee from whom re- 
ceived, and of all expenditures, disbursements, and promises of pay- 
ment or disbursement made by the committee or any member thereof, 
or by any persnn acting under its authority or in its behalf, and to whom 
paid distributed, or disbursed. No officer or member of such committee, or 
other person acting under its authority or in its behalf, shall receive any 
money or its equivalent, or expend or promise to expend any money on be- 
halt of such committee until after a chairman and treasurer of such com- 
mittee shall have been chosen. 

c. 3. That every payment or disbursement made by a political com- 
mittee exceeding $10 in amount be evidenced by a receipted bill stating the 
particulars of expense, and every such record, voucher, receipt, or ac- 
count shall be preserved for fifteen months after the election to which it 
r^lfltpp 

Sec. !. That whoever, actiug under the authority or in behalf of 
such political committee, whether as a member thereof or otherwise, re- 
ceives any contribution, payment, loan, gift, advance, deposit, or promise 
of money or its equivalent, shall, on demand, and in any event within five 
days after the receipt of such contribution, payment, loan, gift, advance, de- 
posit, or promise, render to the treasurer of such political committee a 
detailed account of the same, together with the name and address from whom 
ed, and said treasurer shall forthwith enter the same in a ledger or 
record to be kept by him for that purpose. 

5. That, the treasurer of such political committer' shall, not more 
than fifteen days and not less than ten days before an election at which 
Representatives in Congr< is are to be elected in two or more States, file 
in the office of the Cleric of the House ol Repi ,at Washington, 

D. C. with said Clerk, an itemized detailed statement, sworn to b> 
treasurer and conforming to the requirements of the following section of 



S80 PUBLICITY OF CAMPAIGN C0NTMBUT10BM. 

this act. It shall also be the duty of said treasurer to file a similar and 

final statement with said Clerk within thirty days after \ such eleotion, suoh 
final statement also to be sworn to by said treasurer, and to conform t© 
the requirements of the following section of this act. The statements so 
filed with the Clerk of the House shall be preserved by him for fifteen 
months, and shall be a part of the public records of his office, and shall 
be open to public inspection. 

Sec. 6. That the statements required by the preceding section of this 
act shall state : 

First. The name and address of each person, firm, association, or com- 
mittee who or which has contributed, promised, lbaned, or advanced to 
such political committee, or any offloer, member, or agent thereof, either in 
one or more items, mjoney or its equivalent of the aggregate amount or 
value of $100 or more. 

Second. The total sum contributed, promised, loaned, or advanced to 
such political committee, or to any 'officer, member, or agent thereof, in 
amounts less than $100 ; 

Third. The total sum of all contributions, promises, loans, and ad- 
vances received by such political committee or any officer, member, or 
agent thereof ; 

Fourth. The name and address of each person, firm, association, or 
committee to whom such political committee, or any officer, member, or 
agent thereof, has disbursed, distributed, contributed, loaned, advanced, or 
promised any sum of money or its equivalent of the amount or value of $10 
or more, and the purpose thereof ; . 

Fifth. The total sum disbursed, distributed, contributed, loaned, ad- 
vanced, or promised by such political committee, or any officer, member, 
or agent thereof, where the amount or vald'e of suoh disbursement, distri- 
bution, loan, advance, or promise to any one person, firm, association, loan, 
advance, or promise to any one person, firm, association, or committee in 
one or more items is less than $10 ; 

Sixth. The total sum disbursed, distributed, contributed, loaned, ad- 
vanced, or promised by such political committee or any officer, member, or 
agent thereof. 

Sec. 7. That every person, firm, association, or committee, except po- 
litical committees as hereinbefore defined, that shall expend or promise any 
sum of money or other thing of value amounting to $50 or more for the 
purpose of influencing or controlling, in two or more States, the result of 
an election at which Representatives to the Congress of the United States 
are elected, unless he or it shall cbntribute the same to a political com- 
mittee as hereinbefore defined, shall file the statements of the same under 
oath as required by section 8 of this act in the office of the Clerk of the 
House of Representatives, at Washington, D. C, which statements shall be 
held by said clerk in all respects as required by section 5 of this aot. 

Sec. 8. That any person may in connection with such election incur 
and pay from his own private funds for the purpose of influencing or con- 
trolling, in two or more States, the result of an election at which Repre- 
sentatives to the Congress of the United States are elected, all personal 
expenses for his traveling and for purposes incidental to traveling, for sta- 
tionery and postage, and for telegraph and telephone service, without being 
subject to the provisions of this aot. 

Sec 9. That the foregoing provisions of this act shall not apply to the 
proprietor and publishers of publications issued at regular intervals in re- 
spect to the ordinary conduct of their business, and nothing contained in 
this act shall limit or affect the right of any person to spend money for 
proper legal expenses in maintaining or contesting the results of any elec- 
tion. 

Sec. 10. That every person willfully violating any of the foregoing 
provisions of this act shall, upon conviction, be fined not more than $1,000 
or imprisoned not more than one year, or both. 

SEc. 11. That if, at any election for Representative or Delegate in 
Congress, or at any primary election for the nomination of a candidate 
for Representative or Delegate in Congress held in pursuance of State or 
Territorial law, any person knowingly personates and votes, or attempts 
to vote, in the name of any other person, whether living, dead, or fictitious ; 
or votes more than once at the same election, or primary election, for any 
f indidate for the same toffioe ; or votes at a place where he may not be 
lawfully entitled to vote; or votes without having a lawful right to vote; 
or does any unlawful act to secure an opportunity to vote for himself, or 
any other person; or by force, threat, intimidation, bribery, reward, or 
offer thereof, unlawfully prevents any qualified voter of any State or of 
any Territory from freely exercising the right of suffrage, or by any such 
means induces any voter to refuse to exercise such right, or compels or in- 
duces by any such means any officer of an election or primary election in 
any suoh State or Territory to receive a vote from a person not legally 
qualified or entitled to vote, or interferes in any manner with any officer 
of such eleotion or primary election in the discharge of his duties, or by any 
such means or other unlawful means induces any officer* of an election 
or primary election, or officer whose duty it is to ascertain, announce, or 
declare the result of such election or primary election, or give or make 
any certificate, document, or evidence is relation thereto, to violate or re- 
fuse to comply with his duty 'or any law regulating the same, or knowingly 
receives the vote of any person not entitled to vote, or refuses to receive 
the vote of any person entitled to vote, or aids, counsels, procures, or ad- 
vises any such voter, person, or offloer to do any act hereby made a crime 
or omit to do any duty the omission of which is hereby made a crime, 
or attempts to do so, he shall be punished by a fine of not more than $500 
or by imprisonment not miore than three years, or by both, and shall pay 
the costs of the prosecution. 

Sec. 12. That if at any registration of voters for an election for Rep- 
resentative or Delegate in Congress, or for any primary electron for the 
nomination of a candidate for Representative or Delegate in Congress held 
in pursuance of State or Territorial law, any person knowingly personates 
and registers, or attempts to register in the name of ajiy other person, 
whether living, dead, or fictitious, or fraudulently registers or fraudulently 
attempts to register, not having a lawful right so to do, or does any unlaw- 



PUBLICITY OF CAMPAIGN COyTRIBUTIONS. 281 

ful act to secure registration for him or any other pe»son, or by foroa, 
threat, menace, intimidation, bribery, reward, or oiler, or promise thereof, 
or other unlawful means, prevents or hinders any person having a lawful 
right to register from duly exercising such right, or compels or induces 
by any lof such means, or other unlawful means, any officer of registration 
to admit to registration any person not legally entitled thereto, or interferes 
in any manner with any offloer of registration in the discharge of his duties, 
or by any such means, or other unlawful means, induces any officer of 
registration to violate or refuse to comply with his duty or any law regu- 
lating the same, or if any such officer knowingly and willfully registers as 
a voter any person not entitled to be registered, or refuses to so register 
any person entitled to be registered, or if any such officer or other person 
who b>as any duty to perform in relation to such registration or election 
or primary election, in ascertaining, announcing or declaring the result 
thereof, or in giving or making any certificate, document, or evidence in re- 
lation thereto, knowingly neglects or refuses to perform any duty required 
by law, or violates any duty imposed by law, or does any act unauthorized by 
law relating to or affecting such registration or election or primary elec- 
tion, or the result thereof, of any certificate, document, or evidence in relat- 
ion thereto, or if any person aids, counsels, procures, or advises any such 
voter, person, or officer to do any act hereby made a crime, or to omit any 
aot the omission of which is hereby made a crime, every such person shall 
be punished by a fine of not more than $500 or by imprisonment not more 
than three years, or by both, and shall pay the costs of the prosecution. 

Every registration made under the laws of any State or Territory for 
any State or other election, or primary election at which suoh Representa- 
tive or Delegate in Congress may be nominated or elected, shall be deemed 
to be a reeistration within the meaning of this section, notwithstanding 
such registration is also made for the purposes of any State, Territorial, or 
municipal election, or primary election. 

Sec. 13. That every officer of an election at which any Representative 
or Delegate in Cengress is voted for, or any primary election for the nom- 
ination of a candidate for Representative ot Delegate in Congress, whether 
such officer of election be appointed or created by or under any law or au- 
thority of the Unitea States, or by or under any State, Territorial, district, 
or municipal law or authprity, who neglects or refuses to perform any duty 
in regard to 3uch election or primary election required of him by any law 
of the United States, or of any State or Territory thereof, or who violates 
any duty so imposed, or who knowingly does any acts thereby unauthorized 
with intent to affect any such election or primary election or tne result 
thereof, or who fraudulently makes any false certificate of the result of such 
election or primary election in regard to such Representative or Delegate, 
or who withholds, conceals, or destroys any certificate of record so re- 
quired by law respecting the election of any such Representative or Dele- 
gate or primary election for the nomination of a candidate for such Rep- 
resentative or Delegate, or who neglects or refuses to make and return 
such certificate as required by law. or who aids, counsels, procures, or ad- 
vises any voter, person, or officer to do any act by sections 11 or 12 thereof 
made a crime, or to omit to do any duty the omission of which is by this 
or any of such sections made a crime, or attempts to do so, shall be punished 
by a fine of not more than $500 or by imprisonment, not more than three 
years, or by both, and shall pay the costs of the prosecution. 

Sec. 14. That for the purpose of enabling Congress to apportion Rep- 
presentatives among the several States in accordance with the plan pro- 
vided in the second section of the fourteenth amendment to the Constitution, 
the Director of the Census, as soon as practicable after each decennial cen- 
sus of population, shall submit to Congress a report of the population by 
States as shown by such census, which report shall also show the number 
of male citizens, white and colored, respectively, in each State, 21 years 
of age anb\ over, the number of such male citizens in each State found to 
be illiterate, the number of votes cast by male citizens in each Congressional 
district at the last preceding general election, the number of such male 
citizens in each State that bad not complied with the registration and elec- 
tion laws therein requiring the payment of a poll or property tax as a con- 
dition precedent to the right to register or vote, and the number of such 
male citizen in each State to whom the right to vote at any election for 
tne choice of electors for President and Vice-President of the United States, 
Representatives in Congress, the executive and judicial offices of the State 
or members of the legislature thereof, has been denied or in any way 
abridged except for participation in crime. 

Sec. 15. 'inat all prosecutions under this act shall be commenced within 
one year after the commission of the offense, and shall be brought in the 
United States circuit court within the district in which such offense oc- 
curred. 

The bill passed the house by a vote of 161 to 126, the Repub- 
licans voting solidly in the affirmative, including the Speaker, 
the Democrats in the negative. 

In the Senate the bill was referred to the Committee on Privi- 
leges and Elections and was not reported because of the threat 
of Democratic Senators that they would filibuster and kill it by 
talking it to dealh. 

New York World of May 28, 1908, says of the Democratic 
vote in the House of Representatives against the bill pro- 
viding" for the publicity of campaign contributions: 

"Tney proved by their votes that they are much less agitated 
about full publicity of campaign contributions than about full 
publicity of negro disfranchisement." 



WILLIAM JENNINGS BRYAN. 



Mr. Bx-ya,n on Government Ownership of Railroads. 

[At Madison Square Garden, New York, Aug. 30, 1906.] 

The railroad question is also interwoven with the trust 
question. Nearly all the private monopolies have received re- 
bates or have secured other advantages over competitors. Abso- 
lute equality of treatment at the hands of the railroads would 
go far toward crippling the trusts, and I rejoice that the 
President has had the courage to press this question upon 
Congress. While the law, as it was finally distorted by the 
Senate, is not all that could be wished, it deserves a fair trial. 

Rate regulation was absolutely necessary, and it furnishes 
some relief from the unbearable conditions which previously 
existed; but we must not forget that the vesting of this 
enormous power in the hands of a commission appointed by 
the President introduces a new danger. If an appointive board 
has the power to fix rates and can by the exercise of that 
power increase or decrease by hundreds of millions of dol- 
lars the annual revenues of the railroads, will not the rail- 
roads feel that they have a large pecuniary interest in the 
election of a President friendly to the railroads? Experi- 
ence has demonstrated that municipal corruption is largely 
traceable to the fact that franchise corporations desire to 
control the city council and thus increase their dividends. If 
railroad managers adopt the same policy the sentiment in 
favor of the ownership of the railroads by the Government is 
likely to increase as rapidly throughout the country as the 
sentiment in favor of municipal ownership has increased in 
the cities. 

I have already reached the conclusion that railroads par- 
take so much of the nature of a monopoly that they must 
ultimately become public property and be managed by public 
officials in the interest of the whole community, in accordance 
with the well defined theory that public ownership is nec- 
essary where competition is impossible. 

I do not know whether a majority of the members of the 
party to which I have the honor to belong believe in the 
government ownership of railroads, but my theory is that 
co man can call a mass convention to decide what he himself 
shall think. I have reached the conclusion that there will 
be no permanent relief on the railroad question from dis- 
crimination between individuals and between places, and from 
extortionate rates, until the railroads are the property of tic 
Government and operated by the Government in the interests 
of the people. 

And I believe — I believe that there is a growing belief i'i 
all parties that this solution, be it far or near, is the ultimo'" 
solution. But, my friends, to me the dangerous centralization 
is a danger that cannot be brushed aside. The greatest danger 
of a republic is the consolidation of all power at the capi- 
tal remote from the people, and because I believe that the 
ownership of all the railroads by the Federal Government 
would so centralize power as to virtually obliterate State 
lines, instead of favoring the Federal ownership of all rail- 
roads, I favor the Federal ownership of trunk lines only, and 
the State ownership of all the rest of the railroads. 

Some have said that it would be impracticable to allow 
the local lines to be owned by the several States. I did not 
believe the argument weighty before I went abroad, and my 
observations in other lands have convinced me that State 
ownership of local lines is entirely feasible. In Germany 
almost all the railroads are owned not by the Empire, but 
by the several States — not even the trunk lines are owned 
by the Federal Government, and yet they have no difficulty about 
interstate traffic. 

282 



WILLIAM JENNINGS BRYAN. 283 

T have simply mentioned this because you cannot well dis- 
cuss the trust question without discussing the railroad ques- 
tion, and while I regard the railroad question as it now pre- 
sents itself, as a part of the trust question, and not a para- 
mount issue, I could not in frankness withhold m}- views on 
this subject and therefore, I have said what I said/ 

[At Louisville, Ky., September 12, 1906.] 

In my speech at the New York reception I made some 
remarks concerning the government ownership of railways, 
and thought I had expressed myself so clearly that my po- 
sition could not be misconstrued, even by those who desired 
to misconstrue it. The New York speech was prepared in 
advance. It was not only written, but it was carefully revised. 
It stated exactly what it wanted to state, and I have nothing 
to withdraw or modify in the statements therein made. What 1 
say to-night is rather in the nature of an elaboration of the 
ideas therein presented. 

After quoting from the Democratic platform of 1900 that 
"a private monopoly is indefensible and intolerable," and after 
laying it down as a principle that public ownership should 
begin where competition ends and that the people should have 
the benefit of any monopoly that might be found necessary, 
I stated that I had reached the conclusion "that railroads 
partake so much of the nature of a monopoly that they must 
ultimately become public property and be managed by public 
officials in the interest of the whole community." 

I do not know that the country is ready for this legis- 
lation. I do not know that the majority of my own party 
favors it, but I believe an increased number of the mem- 
bers of all parties see in public ownership a sure remedy for 
discrimination between persons and places and for the ex- 
tortionate rates for the carrying of freight and passengers. 

I then proceeded to outline a system of public owner- 
ship whereby the advantages of public ownership might be 
secured to the people without the dangers of centralization. 
This system contemplates Federal ownership of the trunk 
lines only, and the ownership of local lines by the several 
States. 

I further expressed it as my opinion that the railroads 
themselves were responsible for the growth of the sentiment 
in favor of public ownership and said that, while I believed 
the rate bill recently enacted should be given a fair trial, we 
might expect to see the railroads still more active in politics 
unless our experience with them differed from the experience 
we had had with franchise-holding corporations. 

This statement of my view T s has been assailed by^ some as 
an attempt to force these views upon the Democratic party 
and by some as an announcement of an intention to insist 
upon the incorporation of these views in the next Democratic 
national platform. 

Let me answer these two charges. I have tried to make it 
clear that I expressed my own opinion and I have never sought 
to compel the acceptance of my opinion by anyone else. Ke- 
serving the right to do my thinking, I respect the right of every 
one else to do his thinking. 

If you ask me whether the question of government owner- 
ship will be an issue in the campaign of 1908, I answer I 
do not know. If you ask me whether it ought to be in the 
platform, I reply, I cannot tell until I know what the Demo- 
cratic voters think upon the subject. If the Democrats be- 
lieve the next platform should contain a plank in favor of 
government ownership, then that plank ought to be included. 
If the Democrats think it ought not to contain such a plank, 
then such a plank ought not to be included. 

It rests with the party to make the platform and indi- 
viduals can only advise. I have spoken for myself and for 
myself only, and I did not know how the suggestion would be 
received. I am now prepared to confess to you that it hafl 
been received more favorably than I expected. 

There is this, however, I do expect, namely, that these 
Democrats who oppose public ownership will accompany their 



284 WILLIAM JENNINGS BRYAN. 

declaration against it with the assertion that they will favor 
government ownership whenever they are convinced the couri- 
i ry must choose between government ownership of the roads 
and railroad ownership of the government. 

[At East Radford, Va., September 15, 1906.] 

Two years ago I had reached the conclusion that the gov- 
ernment ownership of railroads was the onlv solution of the 
question. I did not say it when I was the leader of the 
^arty in either campaign; in fact, I had not reached the con- 
clusion until a few years ago. When I was relieved of leader- 
ship at St. Louis, ana could speak as a private individual, 
i stated my conclusions. My convictions have grown since, 
and in New York I stated it as my opinion that that was 
the ultimate solution. I said I did not know whether the 
country was ready for it, or whether a majority of the Demo- 
crats favored it. 

Now, I want to say that my position has been misstated, 
and in some places misconstrued. 1 have been accused of 
favoring a thing that would lead to centralization. Let me 
remind you that this plan not only does not lead to centrali- 
zation, but it is the first suggestion made in many years that 
looks toward the strengthening of the State and making a 
bulwark against centralization. Leople have been discussing 
public ownership with the idea that the Federal Government 
would own the railroads, and it seemed to me that that was 
fraught with danger, because I believe in the Democratic 
doctrine of local self-government, and that our opinion is strong- 
est when the independence of the State and the conduct of its 
t.vvn aiiairs is recognized and respected. 

I believe in our constitutional doctrine that local things 
• are for the States, and national affairs for the Federal Govern- 
ment, and therefore, instead of advocating a Federal owner- 
ship that would centralize all this power at Washington, I 
advocate a dual plan, whereby only the trunk lines would be 
under the control of the Federal Government and all the 
local lines under the control of the State government. 

If anybody denies that it is practicable, I cannot but tell 
them that in the Empire of Germany almost all the railroads 
are owned by the- separate states, and that today the Fm^';; ; - 
wants to get the railroads in order to strengthen the Federal 
Government, but the States refuse to surrender them, because 
the}^ are the influential strength of the states oi the Empire 
of Germany. So, my friends, instead of being for centrali- 
zation, this is the plan that gives to the State the power 
to strengthen itself and to attend to its own affairs. 

I am not here to bring you to my conclusions on the ra ; l- 
road question. So far as I am concerned, it does not matter 
to me whether or not every man in the United States agrees 
with me or not. I believe that every man ought to have 
his own beliefs and his own convictions, and when he has 
convictions on the subject of public matters, I believe that 
he ought to give them to the people and take the respon- 
sibility for them. 

[In letter to Henry M. Whitney, of Boston, March 25, 1907.] 
I am in favor of both National and State regulations, but 
T also believe that public ownership is the ultimate solution 
of the railroad question. In my discussions on this subject 
I have pointed out that because of the danger of f-entralizat 5 • 
in ownership by the Federal Government of all the lines I 
prefer a system in which the Federal Government will be 
confined to the necessary trunk lines and the ownership of 
the rest of the lines be left to the States. This, however.. 
is not an immediate question; at least. I am not sure that 
the people are ready to consider the question of public owner- 
ship, and until they are ready to consider that question the 
interest is centered in regulation. 

[In letter to Wall Street Journal, April 6, 1907, published April 10. lf)07.] 

For some fourteen years after my entrance into National 

Dolitio* I hoped for effective railroad legislation and was 



WILLIAM JBNNINQS BRYAN. 285 

brought reluctantly to the belief that government ownership 
furnished the only satisfactory remedy for the discrimination, 
rebates, and extortions practiced by the railroads and for the 
corruption which they have brought into politics. 

My first public expression on this subject was after the 
National convention in 1904. Two reasons led me to discusa 
the subject at that time. First, the triumph of the reaction- 
ary element at St. Louis discouraged the more radical mem- 
bers of our party. Feeling sure, from contact with the rank 
and file of our organization, that the ascendency of the so- 
called conservative leaders would be temporary, I appealed 
to the radical Democrats to remain with the party, secure 
control of the organization, and make the party an effective 
instrument in securing needed reforms. 

To encourage these progressive Democrats to remain with 
the party I announced the conclusion which I had reached in 
regard to the final necessity for government ownership. * * * 
At this time a majority of the people still seem to have 
faith in the regulation, and the first thing necessary is to 
ascertain the present value of the railroads and then pre- 
vent any more watering of stock. I shall assist as far as I 
am able to test regulation under as favorable conditions as 
can be created, but having reached the conclusion that, in 
the end, regulation will be found ineffective, T have stated 
my conclusions. 

As I was slow in reaching this conclusion myself I can 
be patient with those who honestly fear government owner- 
ship. In the meantime, I am anxious that those who become 
convinced of the necessity of government ownership shall con- 
sider the plan which reduces centralization to a minimum 
and adds to the influence and vigor of the state. 

Bryan on Government Ownership of Railroad*. 

[New York World, February, 1908 ; printed in daily Congressional Record, 
May 29, 1908.] 

Most people believe, Mr. Bryan, that your first proclamation of gov- 
ernment ownership of railways was made at New York City August 30, 
1906, on your "return from Europe. Such is not the case. The plan of 
reorganization to "rid the Democratic party of plutocracy," which you 
promised on the adjournment of the Kansas City convention in 1904, was 
given to a waiting world on July 21, 1904. You stated the case of govern- 
ment ownership of railroads as follows : 

"I have heretofore refused to take a position on the question of gov- 
ernment ownership of railroads, first, because I had not until recently 
studied the subject ; and, secondly, because the question had not been 
reached. Recent events have convinced me that the time is now ripe 
for the presentation of this question. Consolidation after consolidation 
has taken place until a few men now control the railroad traffic of the 
country and defy both the legislative and executive power of the nation. 
I invite the Democrats, therefore, to consider a plan for the govern- 
ment ownership and operation of the railroads. The plan usually sug- 
gested is for the purchase of those roads by the Federal Government. 
This plan, it seems to me, is more objectionable than a plau which involves 
the ownership and operation of these roads by the several States. To put 
the railroads in the hands of the Federal Government would mean an 
enormous centralization of power. It would give to the Federal Govern- 
ment a largely increased influence over the citizen and the citizen's affairs, 
and such centralization is not at all necessary. The several States can 
own and operate the railroads within their borders ju6t as effectively as it 
can be done by the Federal Government, and if it is done by the States the 
objection based upon the fear of centralization is entirely answered. A 
board composed of representatives from the various States could deal with 
interstate traffic j,ust as freight and passenger boards now deal with the joint 
traffic of the various lines. If the Federal Government had the railroads 
to build there would be constant rivalry between different sections to se- 
cure a fair share of the new building and improvement, but where this is 
left to the State the people in each State can decide what railroads they 
desire to build or to buy." 

Later, in April, 1905, at a dinjoer given by the Iroquois Club, of 
Chicago, on the birthday of Thomas Jefferson, the greatest of American 
individualists, you repeated and elaborated this highly ornamental scheme 
of triple State socialism. 

August 29, 1906, you returned to New York in triumph from a trip 
around the world, to be greeted by Democrats from nearly every State in 
the Union as their candidate for President. 

You undertook in your speech at Madison Square Garden. August 
to sound the keynote of a government ownership campaign : 

"I have already reached the conclusion that railroads partake so much of 
the nature of a monopoly that they must ultimately become public pr 
and be managed by public officials in the Interest of the whole community, 
in accordance with the well-defined theory that public ownership is neces- 
sary where competition is impossible. I do not know whether a majority of 
the members of the party to which I have the honor to belong believe in the 
Government ownership of railroads, but my theory is that no man oan tell 



286 WILLIAM JENNINGS BRYAN. 

a mass convention to decide what he himself shall think. I have reached 
the conclusion that there will be no permanent relief on the railroad ques- 
tion from discrimination between individuals and between places and from 
extortionate rates until the railroads are the property of the Government 
and operated by the Government in the interest of the people. And I be- 
lieve that there is a growing belief in all parties that this solution, be it 
far or near, is the ultimate solution. But to me, my friends, the danger of 
centralization is a danger than can not be brushed aside. The greatest 
danger of a republic is the centralization of power at the capital re- 
mote from the people, and because I believe that the ownership of all 
the railroads by the Federal Government would so centralize power as 
virtually to obliterate State lines, instead of favoring the Federal owner- 
ship of all railroads, I favor the federal ownership of trunk lines only and 
tthe state ownership of all the rest of the railroads." 

Impressed by vehement protests against the marriage of Democracy 
to State socialism, you began at Louisville, September 12, 1906, your 
masterful retreat : 

"I advocate strict regulation and shall rejoice if experience proves 
that that regulation can be made effective. * * * Yet I would not 
be honest with you if I did not frankly admit that observation has 
convinced me that government ownership can be undertaken on the 
plan indicated with less danger to the country than is involved in 
private ownership as we have had it or as we are likely to have it. * * * 
You say that all these abuses can be corrected without interference with 
private ownership. I shall be glad if experience proves that they can be, 
but I no longer h'ope for it." 

The retreat ended at Lincoln, July 19, 1907, when you asked for an 
armistice in these words : 

"Government ownership is not an immediate issue. While many Demo- 
crats believe" — and Mr. Bryan is one of the number — "that public owner- 
ship offers the ultimate solution of the problem, still those who believe 
that the public will finally in self-defense be driven to 'ownership recognize 
that regulation must be tried under the most favorable circumstances be- 
fore the masses will be ready to try a more radical remedy." 

Do you think that the Democratic party can convince voters that it hon- 
estly favors regulation of railroads if it nominates a candidate who 
believes in government ownership and who has proclaimed in advance his 
belief that regulation will prove a failure? Do you think that the Ameri- 
can people could safely trust you to carry out a policy of regulation with 
which you have no sympathy and for whose effectiveness to remedy abuses 
you have no h'ope? 

The United States Courts and the Trusts— Let Us See, Mr. 

Bryan. 

[Printed in New York World, February, 1908 ; printed in daily Congres- 
sional Record, May 29, 1908.] 

Let us see, Mr. Bryan, whether your campaign against the Federal 
courts had a more rational inspiration than your campaign for a 50-cent 
dollar. 

You gave your followers to understand that the United States courts 
were prejudiced in behalf of the rich and powerful — were, in fact, controlled 
by trusts and corporations— and were deaf to the welfare pf the people 
as a whole. Not only have you appealed to mob passion against Federal 
courts of justice and threatened to pack the Supreme Court, but you have 
persistently advocated short terms and popular elections for United States 
judges in order to make them creatures of popular clamor. We have, there- 
fore, thought proper to indicate here as briefly as possible important cases 
arising since 18t»6 in which proceedings have been begun or judgment has 
been entered against the very interests which you charged were privileged. 

The list is instructive in many ways, but in none is it more so than 
in its complete refutation of the slanders of socialistic demagogism. 

In 1898 the Supreme Court of the United States reversed the cir- 
cuit court, southern district of New York, and the circuit court of appeals, 
and enjoined the Joint Traffic Association from violating the antitrust law. 
By the action of the court it was dissolved. 

In 1899 the Supreme Court sustained the circuit court of appeals, 
sixth circuit, in the matter of an injunction restraining the operations of 
the cast-iron pipe trust, known as the Addystone Pipe case. 

In 1900 the Supreme Court sustained the constitutionality of the 
antitrust law of Texas, one of the most drastic yet adopted. 

In 1904 the Supreme Court, having the cases against the beef trust 
before it, decided: (1) Traffic in live stock transported from State to 
State is interstate commerce, and persons engaged in buying and selling 
such live stock are engaged in interstate commerce; (2) the combina- 
tion between dealers to suppress all competition in the purchase of live 
stock is. an unlawful restraint of trade; (3) the combination between 
dealers to fix and maintain a uniform price in the sale of meat through- 
out the country is an unlawful restraint of trade; (4) the combination 
of dealers to obtain preferential railroad rates is an unlawful restraint 
of trade, and (5) all combinations suppressing competition fall under 
the prohibition of the Sherman antitrust act. 

In 1904 the Supreme Court affirmed the decree of the circuit court, 
Minnesota, enjoining the Northern Securities Company from purchas- 
ing, acquiring, receiving, holding, voting, or in any manner acting as 
the owner of any of the shares of stock of the Northern Pacific and 
Great Northern Railway Companies, and restraining the Northern Se- 
curities Company from exercising any control over the corporate acts of 
said comnaniiQSj 

In 1905 the Supreme Court affirmed a decree of the circuit court, 
northern Illinois, enjoining various great packers in Chicago, commonly 
known as the "beef trust," from carrying out an unlawful conspiracy 
between themselves and railway companies to suppress competition. 

In 1906 the Supreme Court affirmed various judgments of United 



WILLIAM JENNINGS BRYAN. 287 

8tates courts in Wisconsin and Minnesota against the General Paper 
Company, which had been proceeded against as a trust. The combination 
was, by the decision of the Supreme Court, finally dissolved. 

In 1906 the Supreme Court decided the celebrated Chicago street 
railway franchise case in favor of the city and against the traction 
trust. 

In 1899 a bill was filed in the circuit court, southern Ohio, to 
annul a contract and dissolve a combination of producers and shipper* 
of coal in Ohio and West Virginia, formed for the purpose of selling coal 
at not less than a given price, to be fixed by a committee. The trust was 
enjoined, and the combination was dissolved. 

In 1902 the circuit court, morthern California, perpetually enjoined 
the Federal Salt Company (the salt trust) from suppressing competition 
west of the Rocky Mountains. 

In 1903 the salt trust was indicted in the same court, pleaded guilty, 
and was sentenced to pay a fine of $1,000. 

In 1905 the Chicago, Burlington and Quincy Railroad Company was 
convicted in Missouri, under the Elkins Act, of charging less than estab- 
lished freight rates, and was fined $15,000. Similar prosecutions in 
Kentucky resulted also in convictions and fines. 

In 1905, in Missouri, Thomas & Taggart were convicted of conspiracy 
to obtain rebates. Thomas was sentenced to jail for six months and 
fined $6,000, and Taggart was sentenced to jail for three months and fined 
$4,000. 

In 1905 Weil and others were convicted in Illinois of receiving re- 
bates and were fined $25,000 each. 

In 1905 the Chicago, Burlington and Quincy Railroad Company and 
various of its officers were convicted in Illinois of granting rebates. The 
corporation was fined $40,000 and, the officers $10,000 each. 

In 1906 proceedings were begun in the southern district of New York 
against the tobacco trust. These resulted in several convictions, fines of 
$10,000 and $8,000 being inflicted upon two of the defendants. 

In 1906 Swift & Co., Armour & Co., Nelson Morris Company, and the 
Cudahy Company, of Chicago, were convicted in Missouri of receiving re- 
bates and were fined $15,000 each. 

In 1906 the American Sugar Refining Company and others were con- 
victed in New York of receiving rebates, and fines aggregating $88,000 
were inflicted. 

In 1906 the New York Central and Hudson River Railway Company 
and others were convicted in New York of granting rebates, and fines 
aggregating $114,000 were assessed. 

In 1906 the Ann Arbor Railroad Company was convicted in Michigan 
of granting rebates and was fined $15,000. 

In 1907 John M. Faithorn ,of the Chicago and Alton Railway Com- 
pany, was convicted in Illinois of granting rebates and was fined $25,000. 

In 1907 the Standard Oil Company, of Indiana, was convicted in 
Illinois on 1.462 counts of receiving rebates and was sentenced to pay a 
fine of $29,240,000. 

Bryan the Candidate of the Silver Trnst. 

[New York World, February, 1908 ; printed in daily Congressional Record, 
May 29, 1908.] 

Your leadership of the Democratic party, Mr. Bryan, began with the 
national convention held in Chicago in 1896. It was an unfortunate 
year for a national campaign. 

The American, people were paying the penalty of thirty years' of 
trifling with their currency and their monetary standard of value. In- 
dustry was half paralyzed, commerce semiprostrate. Crops had been 
poor, the price of farm products was low ; the farms themselves were 
generally mortgaged. The National Government itself, with a demoral- 
ized Treasury, was borrowing money to pay its current expenses under 
the form of "maintaining the gold reserve. Bond sales to favored syn- 
dicates had aroused the indignation of the people, without regard to party. 
Probably a million men in the cities were out of work. Soup houses had 
been opened during the two preceding winters, and in every large center of 
population police stations had been filled nightly by homeless wanderers. 

Armies of tramps moved sullenly along the highways. A Democratic 
Administration was in power which seemingly had no friends except its 
own aooointees and beneficiaries. Discontent was almost universal. It 
was the hour of the agitator, and the Democratic national convention was 
his opportunity. 

When a temporary organization of the convention was effected the 
elements of repudiation and political revolution found that' while they had a 
majority of the delegates, they did not have the two-thirds majority neces- 
sary, in accordance with Democratic precedent, to nominate a candidate for 
President. This embarrassment was short lived. 

The silver forces, by prearranged plan, had sent contesting delegations 
from many States, including Nebraska. Only a majority vote was necessary 
to adopt the report of a committee. The committee on credentials therefore 
uir eated enough conservative delegates to insure a radical two-thirds ma- 
jority for nominating purposes, and the issue was no longer in doubt. 

You, Mr. Bryan, were at the head of the contesting delegates from 
Nebraska when they marched into the convention hall to take the seats 
of the sound-money delegates that bad been evicted. 

The money plank in the platform, which the convention adopted by 
a vote of 626 to 303, was as follows : * * * 

"We demand the free and unlimited coinage of both silver and gold 
at the present legal ratio of 16 to 1 without waiting for the aid or consent 
of any other nation. We demand that the standard silver dollar shall be a 
full legal tender, equally with gold, for debts, public and private, and we 
favor such legislation as will prevent for the future the demonetization of 
any kind of lesal-tender money by private contract. • • • " 

The great silver mine owners of the world were in despair over the 
depreciation in price of their metal. Its use for money of redemption 



288 WILLIAM JENNINGS BRYAN. 

had been discontinued by the leading commercial nations. The India 
mints bad been closed to its coinage. Congress had been forced to re- 
peal the Sherman silver act, which had made the National Government a 
heavy purchaser of silver in the market. 

The business of the mining operators was in a bad way and ruin 
stared many of them in the face unless the Government of the United 
States created an unlimited market for their product by throwing open 
its mints to the free and unlimited coinage of silver. 

Never was a political propaganda more vehemently and desperately 
advocated, and never were the selfish interests behind it more adroitly 
concealed. If the obvious self-interest of the silver miners in the 16 to 1 
crusade carried on by Democrats and Populists in 1896 had been as well 
understood as it should have been the names of these men would be as 
closely associated in the public mind with the silver trust as Rockefeller's 
is with oil or Armour's is with beef. 

The proposition which you advanced, Mr. Bryan, contemplated open- 
ing the mints of the United States to the free coinage on private account 
at the rate of less than 50-cents' worth of bullion to the dollar of what- 
ever portion of this enormous stock of silver its owners or speculators 
might be moved to present. You asserted that free coinage and the fiat of 
Government would instantly raise every 50-cent token thus minted to parity 
with gold. 

If so, the wealth of all owners and producers of silver would have been 
doubled. 

Here is a list of some of the gentlemen who assisted in financing your 
theory that 50-cents' worth of silver bullion ought to be worth a dollar : 

Contributions to Mr. Bryan's Campaign Fund. 

Marcus A. Daly, Montana, principal owner of Anaconda mine. 
This sum of $169,000 represented Mr. Daly's own contrib:- 

tion and sums collected by him $159,000.00 

David H. Moffat, First National Bank, Denver, Colo 18,000.00 

W. S. Stratton, Colorado, owner of Independence mine 12,000.00 

William A. Clark, of Montana 45,000.00 

Dennis Sheedy, Colorado National Bank, Denver, C?lo. 7,500.00 

Charles D. Lane, of California 15,000.00 

D. M. Hyman, Denver, Colo 7,500.00 

Other Colorado mining interests 6,000.00 

Utah Mining interests 18,372.00 

Total contributions of the silver-mine owners to your . 

campaign fund 288,000.00 

These contributions, as you doubtless know, Mr. Bryan, were all 
recorded in the books of the Democratic national committee, although in 
your eloquent appeals for publicity of political contributions you have never 
referred to the fact that the silver interests financed your Presidential 
campaign. * * * 



BRYAN FAVORS PERMANENT RETENTION OF PART OF THE 
PHILIPPINES. 

Proposes to Retain Choice Sections and Set Up the Area so 
Retained as an "Oriental Territory," of the United State** 
with a Delegate in Congress. 

Mr. William Jennings Bryan seems to have changed his views 
as to the justice of American control in the Philippines, and 
now favors the retention of Philippine territory for permanent, 
ownership by the United States. At least this was his view in 
1906, after a visit to those islands. In one of his syndicate let- 
ters (sold to American newspapers at so much per column), dur- 
ing- his trip around the world, he put forth the proposition that 
the United States Government should take permanent possession 
of such portion of the Philippine Islands and harbors as it might 
choose, and give the Filipinos independence and protection in 
only such of the area as might remain. Even this proposition of 
generously allowing them to retain such parts of the islands as 
we might not want for our own permanent occupancy and owner- 
ship is to be confined for the present to the northern part of the 
group, and full control retained indefinitely (with a shadowy 
promise of something sometime) in the southern islands, espe- 
cially in the large and extremely fertile island of Mindanao 
(about the size of the State of Indiana), which, he naively re- 
marks, "seems to be the most inviting place" for Americans. 

The following are extracts from the letter, as published in 
the Washington Post of April 29, 1906, and in many other news- 
papers of the United States and Europe, the letter being, it will 
be observed, "copyrighted in Great Britain." The letter was also 
published in full in Mr. Bryan's own paper the "Commoner" on 
May 4. 1906. 



WILLIAM JENNINGS BRYAN. 289 

By William Jennings Bryan. 

■[Copyright, 1906, by Joseph B. Bowles. Copyright in Great Britain. All 
rights reserved.] 

Singapore, Jan. 22, 1906. 

In speaking of Philippine independence I have presented some of 
the reasons given by Filipinos for desiring it, but there are arguments 
which ought to appeal especially to Americans. If it were our duty to 
maintain a colonial policy, no argument could be made against it, 
because duties are imperative and never conflict. If, on the other hand] 
the Filipinos desire independence and are capable of self-government, we 
cannot justify the retention of the islands unless we are prepared to 
put our own interests above theirs, and even then we must be satisfied 
that our interests will be advanced. 

If it is urged that we need the Philippine Islands as a base for 
the extension of our trade in the Orient, I answer that it is not neces- 
sary to deny the Filipino independence in order to hold a sufficient 
number of harbors and coaling stations to answer all requirements of 
trade. The Filipinos are not only anxious to have the advantage of our 
protection, but they recognize that to protect them we must have har- 
bors and a naval base. In return for the services we have rendered 
them we have the right to ask, and they would gladly grant, such reser- 
vations as we might need. These reservations could be properly fortified 
-and would furnish coaling stations both for our own navy and for our 
.merchant marine. 

********* 

If our nation would at once declare its intention to treat the Fili- 
pinos living north of Mindanao as it treated the Cubans, and then pro- 
ceed, first, to establish a stable government, patterned after our own ; 
second, to convert that government into a native government by the 
substitution of Filipno officials as rapidly as possible ; third, to grant 
independence to the Filipinos, reserving such harbors and naval stations 
as may be thought necessary; and fourth, to announce its purpose to 
protect the Filipinos from outside interferences while they work out 
their destiny — if our nation would do this, it would save a large annual 
expense, protect its trade interests, gratify the just ambitions of the 
Filipinos for national existence, and repeat the moral victory won to 
Cuba. 

In return for protection from without, the Filipinos would agree, 
ri s the Cubans did, that in their dealings with other nations they would 
./act embarrass us. 

The reservations retained could be converted' into centers for the ex- 
„ tension of American influence and American ideals, and our nation would: 
. increase its importance as a real world power. * * * 

Our reservations ought to contain model schools, with a central col- 
lege, experimental farms, and institutions in which the people could 
be trained in the arts and industries most suited to the natural re- 
sources of the country. At our reservations there would be religious 
freedom, freedom of speech, freedom of press, self-government, and public 
instruction for all, and every uplifting influence would have free play. 
If we believe right makes might and that truth has within itself a 
propagating power, we cannot doubt the spread of American civilization 
from these American centers. 

While the Philippine Islands are under American authority, the 
government ought to be administered for the benefit of the Filipinos, in 
.accordance with Secretary Taft's promise. If they are to be subject to 
•our tariff laws when they buy of other nations, they ought to have 
tfiee trad« with us, but the Philippine Islands are so far from us that 
it would be more just to allow the Philippine tariff to be made by the 
Philippine assembly soon to be established. The Filipinos belong to the 
Orient, and their dealings must be largely with the countries of the 
Orient ; unless they are in a position to have their tariff laws conform 
to their geographical position, there must necessarily be friction and 
injustice. 

So important are geographical considerations that Americans who see 
Bt to take up their residence upon such reservations as we retain for 
harbors-, coaling stations, and a naval base ought to be freed from the 
fetters of our tariff laws and shipping laws. 

■ I even venture to suggest the creation of an Oriental territory, to be 
composed of such stations and reservations as we may now have or here- 
after acquire in the Orient. This territory should have a delegate in Con- 
gress like other territories, but should be free by constitutional amendment 
from our tariff laws and permitted to legislate for itself upon this subject. 
It could thus establish free ports, if it chose, and give to its people the trade 
advantages enjoyed by those who live in Hong Kong, Singapore, and other 
open ports. 

********* 

In what I have said about independence and self-government in the 
Philippines, 1 have been speaking of Luzon and the other islands north 
of Mindanao. As I have already pointed out, the conditions existing in 
Mindanao and Sulu archipelago are so different from those existing in 
the northern islands that the two groups must be dealt with separately. 
It would not be fair to deny independence to the Christian Filipinos 
living in the north merely because the Moros have never shown any 
desire to adopt a republican form of government. (They live under 
a sort of feudal system, with sultan and datto as the ruling lords.) But 
while the work of establishing a stable government among the Moros la 
a more .difficult one and will proceed more slowly, the same principles 
should govern it * * * While I do not believe that any large number 
of Americans could be Induced to settle permanently in Mindanao (and 
Mindanao seems to be the most inviting place), there will be ample time 
to test this question while a government is being established among the 
Moros. 



290 WILLIAM JENNINGS BRYAN. 

So it appeal's that Mr. Bryan, after seeing- the islands, has be- 
come an Imperialist in the full sense of the word, and calmly 
proposes that instead of governing them with the plan of ulti- 
mate independence for all their people and territory, we shall 
seize as much of the territory as we may desire, including, of 
course, its best harbors, and set it up as a Territory of the 
United States, without any question as to the wishes of the 
people there residing and owning homes. He has insisted that 
the Kepublican policy of depriving the Filipinos of self-govern- 
ment even temporarily is wrong; now he proposes to compel 
them to pay for independence in a part of their territory by 
giving up another part to become permanently a part of the 
United States. Nor does he indicate how large an area he 
would compel them to pass over to us, whether ©ne-tenth, one- 
fourth, or one-half of the islands would ultimately become the 
proposed "Oriental Territory," with a delegate in the United 
States Congress. 

If one visit to the islands convinces Mr. Bryan that we should 
retain a part of their area (the most valuable of course) and 
make it a Territory of the United States, with a delegate in 
Congress, would another visit convince him that we should re- 
tain them all and bring them in as States, with Senators and 
Representatives ? 

Mr. Bryan has asserted that we were and are doing the Fili- 
pinos great injustice by depriving them of independence. Now 
he proposes that we compel them to buy that independence for a 
part of their people by giving us therefor a part of their area 
and population, and that we make that area a Territory of the 
United States. If it was wrop_g to even temporarily deprive the. 
islands as a whole of independence, how would it be right to 
take a part of that territory (no matter how small) and make it 
forever subject to the United States, forcing the people to assent 
to this as the price of giving up the remainder? Does he pro- 
pose that we must now be paid for doing what he says should 
have been freely done long ago? 

The national Democratic platform also supports the proposi- 
tion in modified form, as follows : 

"We favor an immediate declaration of the nation's purpose to recog- 
nize the independence of the Philippine Islands as soon as the stable gov- 
ernment can be established, such independence to be guaranteed by us as we 
guarantee the independence of Cuba, until the neutralization of the islands 
can be secured "by treaty with other powers. In recognizing the independ- 
ence of the Philippines our government should retain such land as may be 
necessary for coaling stations and naval bases/' 

Bryan Yearns over Filipinos, but Trill not Imperil his Politi- 
cal Cliances to Demand Justice for the American Negro. 

[New York Evening Post, Democratic] 
Mr. Bryan made his great bid for Southern delegates last 
night, and we do not doubt that he will get them. In answer 
to a question after his address on "Universal Brotherhood" at 
Cooper Union, he stood up openly for negro disfranchisement in 
the South. Of course, he had to put in the usual assertion that 
if Northern Bepublicans had lived in the South they would have 
done the same as Southern Democrats, but what has that to 
do with a question of morals and of law, which Mr. Brj^an was 
professing to discuss without any personal or party interest? 
He yearns over the oppressed Filipino ; his heart bleeds for the 
poor and down trodden everywhere ; yet when it comes to equal 
treatment for the black men of his own country, all he has to 
say is that "the white men of the South are determined that the 
negro shall be disfranchised everywhere it is necessary to pre- 
vent the recurrence of the horrors of carpet-bag rule.". This will 
be telegraphed all over the South to-day, and will doubtless kill 
off the opposition to Bryan there, but it leaves his "Universal 
Brotherhood" looking like the cheapest kind of cant. The 
wronged negro asks : "Am I not a man and a brother," but Mr. 
Bryan's reply is: "Not if you live in the South, and if saying a 
word for your rights would imperil my political fortunes." ! 



WILLIAM JENNINGS BRYAN. 291 

Bryan says lie is More Radical than in 180 It. 

London, July 12, 1900. 

William J. Bryan, having read the American newspapers, con- 
sented to-day to discuss questions raised since he again became 
prominent as a Presidential possibility. He said : 

"I notice that I am now described by some as a conservative. Iii 
one sense I always have been a conservative. The Democratic poli- 
cies are conservative in that they embody old principles applied to nc.s 
conditions. 

"If, however, by the word conservative they mean that I have 
changed my positions on any public question or moderated my opposition 
to corporate aggrandizement they have a surprise waiting for them, l 
am more radical than I was in 1896 and have nothing to withdraw 
on economic questions which have been under discussion. 

"The only question we discussed in 1896 upon which there has been 
any apparent change is the silver question, and that has not been a 
change in the advocates of bimetallism, but in conditions. I believe in 
bimetallism, and I believe that the restoration of silver would bring still 
further prosperity, besides restoring par in exchange between gold and 
silver using countries ; but I recognize, as do all other bimetallists whpin 
I have met abroad, that the unexpected and unprecedented increase in 
gold production has for the present removed the silver question as an 
issue." 

At the Fourth of July meeting of the American Society in 
London Mr. Bryan said with reference to the silver question : 

"I wish to say that when I see the progress my country has 
made walking on one leg, I wonder what it would have done walking 
on two legs." 



Bryan's Nomination Means Taft's Election. 

[New York World, June 19, 1908.] 

With Mr. Bryan as Mr. Taft's opponent the campaign can end 
only in a Republican victory. Mr. Bryan has been leader of the 
Democratic party virtually for twelve years, and the state of the 
party bears eloquent testimony to the quality of his leadership. 
Of forty-six States the Democrats control only thirteen and the 
Republicans thirty-three. There are only thirty-one Democrats 

i in the United States Senate to sixty-one Republicans, and an- 
other Republican Senator, elected in Kentucky to succeed a Dem- 
ocrat, will take his seat March 4. There are only two anti- 
Republican Senators north of the line of the Missouri Compro- 
mise. Outside of New York city there are only^ thirty-seven 
Democrats in both houses of Congress from the entire East, 
North, and West. 

Mr. Bryan's own State has gone Republican in everjr election 
for seven years, although he arranged a fusion ticket and framed 
a platform for every campaign. New Jersey, the only Northern 
State which failed to give its electoral votes to Lincoln in 1860 
and which went Democratic in every national election but one 
for forty years gave a Republican majority of 87,000 against Mr. 
Bryan in 1896 and has been Republican ever since. 

The story of New York is not greatly unlike the story of New 
Jersey. Thanks to Bryanism, New York ceased to be a debat- 

i able State in Presidential elections. The Republican plurality 

j in 1896 was 268,000; in 1900 it was 143,000; in 1901 it was 
175,000. In most of the counties of this State the Democratic 
party has all but gone out of existence. A parallel to the dis- 
astrous consequences of Bryan leadership can be found only in 
the civil war. 

Every idea, principle, or issue represented by Mr. Bryan or pre- 
sented against him by the Republicans has been submitted to 

i the verdict of the voters in the Congressional elections during 
the last twelve years no less than in the Presidential elections, 
and in every House of Representatives chosen the Republicans 
have had a majority. It is evident that only new conditions, 

1 new issues, and new candidates can produce any decided change 
from the results of these preceding elections. With an un- 
beaten candidate on an unbeaten platform the Democrats would 
have a fighting chance in the campaign, despite the long demor- 
alization of their party: but what can a thrice-beaten party do 
with a twice-beaten candidate whose policies have already over- 
whelmed the Democratic organization in wreck and ruin? 

j. 21 



292 WILLIAM JENNINGS BRYAN. 

Mr. Bryan's Trust Ratio. 

Cleveland, Ohio, Sept. 15, 1906. 

In a reply to a personal letter of request by Editor George 
Smart, of the Iron Trades Eeview, that William Jennings Bryan 
define more clearly and succinctly his position in regard to the 
so-called trusts, the Democratic leader has responded in the fol- 
lowing words : 

"I am not prepared to state just how much a proportion a cor- 
poration can control without becoming a trust in the sense that it 
limits competition, and competition controls the price and terms of sale. 
For the conduct of my paper, I drew the line at 50 per cent, and do 
not accept an advertisement of a corporation controlling more than oO 
per cent of the product in which it deals. , _, „. 

"I am inclined to believe, however, that the steel trust corurolb 
more of the product than it is good for the American people that one 
corporation should. . ... -. .. 

"In saying that a corporation should not be licensed when it con- 
trols enough to eliminate competition, I do not mean to say that the 
individual industries that are under one management should be destroyed 
The corporation should simply be compelled to reduce its factories until 
its production is in the limit fixed by law." 



WILLIAM RANDOLPH HEARST ON THE DEMOCRATIC PARTY 
AND ITS CANDIDATE. 

rFrom Mr. Hearst's speech to the National Convention of the Independence 
Party at Chicago, July 28, 1908.] 
The Democratic platform contains some good and original things 
but, as has been said, the original things are not good and the good things 

arG I? waf ^built by political jackdaws who feathered their nests with 
the plumes of others without understanding of their significance or inten- 

^ ff 1? SJ\KSSS? n 3" a hermit crab .which has no shell of its 
own and invades the first convenient one without regard to property or 
propriety ^ latform too> of reconciliation and retraction, of atonement 
and apology, of harmony and hypocrisy, for, in compliance with a former 
compact, Parker has pronounced peace, Bill Bailey has poured Standard 
Oil uoon the troubled waters, and Bryan has Killed not only the fatted calf 
but the goose that laid the golden egg. 

No man can serve two masters, and no man can conciliate the con- 
flicting elements of the Democratic party. He who tries must serve one 
and deceive the other; must make public pretense to the people and 
private compact with the trusts. „(,,.„, Ti • i^ k„ * 

The Democratic vanguard is a Falstaff's army. It is led by a 
knight arrayed in a motley of modified professions and compromised prin- 
ciples, of altered opinions and retracted statements. 

A Falstaff's army, whose banner bears on one side a watchword 
for the people and on the other a password for the trusts, ^whose only 
object is office at any cost, whose motto is "after us the deluge. 

Assuming that Mr. Bryan himself is all that his most ardent admirers 
claim him to be, a great lawyer, an enlightened statesman, an inspired 
patriot, still a man is known by the company he keeps, and no decent 
Democrat can tolerate his free companions. No honest citizen can let 
down the bars of office to such an Ali Baba's band of boodlers and bravos. 

No prudent citizen will support a combination to which Taggart sup- 
plies a candidate and Parker a platform, for which Bryan will pay the 
freight and the people will pay the penalty. 

Mr. Hearst's Reply to Mr. Gompers's Message. 

[From the New York American, July 17, 1908.] 
The following cablegram from Mr. Hearst has been received 
in reply to a message transmitted to Mr. Hearst from Samuel 
Gompers, stating that in view of the Democrats' stand for labor 
it would be "an act of greatest patriotism for the Independence 
Party to indorse the Democratic platform," and urging him not 
to run a third ticket, as it would elect Mr. Taf t : 

Paris, July 13th. 

"Tell Mr Gompers that I am not authorized to speak for the mem- 
bership of the Independence Party, but according to my personal standards 
a ourer patriotism consists in laboring to establish a new party which will 
be consistently devoted to the interest of the citizenship, and particularly 
to the advantage and advancement of the producing classes. 

"I do not think the path of patriotism lies in supporting a discredited 
and decadent old party, which has neither conscientious conviction nor 
honest intention, or indorsing chameleon candidates who change the color 
of their political opinion with every varying hue of opportunism. 

"I do not think the best benefit of laboring men lies in supporting 
that old party because of a sop of false promise, when the performance ol 
that party while in power did more to injure labor than all the injunc- 
tions ever issued before or since. 



WILLIAM JENNINGS BRYAN. 293 

. 

"I have lost faith in the empty professions of an unregenerate De- 
mocracy. I have lost confidence in the ability, in the sincerity and even 
in the integrity of its leaders. 

"I do not consider it patriotism to pretend to support that which, 
as a citizen, I distrust and detest, and I earnestly hope that the Inde- 
pendence Party will give me an opportunity to vote for candidates that 
are both able and honest, and for a declaration of principles that is botb 
sound and sincere. 

"WILLIAM RANDOLPH HEARST." 



WATTERSON'S OPINION OF BRYAN AND BRYANISM IN 1896. 

Extracts From Louisville Courier Journal During Mr. Bryan's 
First Campaign for the Presidency. 

[From Courier-Journal, Tuesday, July 14, 1896.] 
Geneva, Switzerland, July 13, 1896, via French Cable. 
Walter N. Haldeman, President Courier-Journal Company, Louis- 
ville, Ky. : 
Another ticket our only hope. No compromise with dishonor. 
Stand firm. 

Henry Watterson. 

The Democratic party seems threatened with engulfment in a deluge 
of populism and anarchy. * * Swayed backward and forward by the 
latest utterances of ridiculous oratory, they ended by making a platform 
which is in it elf an insult to every Democrat, and placed upon that plat- 
form a fire-eating populist, whose chief merit is a capacity for arousing 
similar people by inflammatory rhetoric. As one of our contemporaries 
puts it, "Lunacy" having dictated the platform, it is perhaps natural that 
hyrteria should evolve the candidate." Men like Bryan are agitators, 
rabble-rousers and spellbinders ; but no man would trust them at the head 
of an ordinary business to manage its executive affairs, much less at the 
; head of a great nation. * * * To elect him would mean repudiation, 
anarchy, and national and social ruin. — Courier Journal, July IS, 1896. 

If this were a campaign of common sense, or even of sanity, Mr. Bryan 
could be counted on to quickly talk himself to death ; but as it is Mr. 
Bryan's demagogic loquacity is to be the main reliance of his party for 
rabble-rousing votes. — Courier Journal, July 15, 1896. 

"Bryan is only Tillman in better English." There is a deal of 
truth in that. Tillman and Bryan teach the same creed, but Tillman is 
rough and uncouth, whereas Bryan knows the art of oratorical expression. 
! Bryan was nominated because he was the first man who was able to 
make the convention see and feel that he was as wild as it was. — Courier 
Journal, July 15, 1896. 

Mr. Bryan is nothing but a Populist in doctrine and practice. * * 
| The same hands which opened the gates to the admission of the Tillmans, 
I the Alt gelds, the Debses, and such like cattle, drove out the Carlisles, 
the Vilases, the Whitneys, the Herberts, the Palmers and other stalwart 
exponents of Democracy who have fought every fight their party has 
known for years and have never laid sturdier blows on Republicanism 
than on anarchy and populism. — Courier Journal, July 16, 1896. 

The flag that floats over the names of Bryan and Sewall is the flag 
of pirates, * * of the socialists, and of anarchists, rather than that 
of Democrats. — Courier Journal, July 17, 1896. 

Outside of the radical declaration for free coinage, no part of the 
Chicago platform has occasioned more alarm than the plank which con- 
■ demned the Federal Government for interfering to preserve life and order 
during the great riots of 1894. * * * The defeat of the candidate 
representing such sentiments is not partisan nor a sectional issue, but 
a moral duty. — Courier Journal, July 21, 1896. 

The Populists did the consistent thing in nominating Mr. Bryan for 
the Presidency. There is hardly a plank in the Chicago platform which 
is not also in the Populist platform. Bryan, judged by his record and 
by his professed principles, is just as good a Populist as any of them. 
With one foot on the Chicago platform, and the other on the St. Louis 
platfrom, he can stand comfortably on either leg or both. It is truly 
a strange and disgusting spectacle to real Democrats. — Courier Journal, 
July 26, 1896. 

Is it Bryan and Sewall or Bryan and Watson? It is immaterial. 
In either case it is Bryan and Populism, Bryan and repudiation, Bryan 
and riot, Bryan and ruin. — Courier Journafl, July 21, 1896. 

The three R's of Bryan's campaign seem to be Repudiation, Riot, 
and Ruin. — Courier Journal, July 29, 1896. 

Bryan seemed proud to be introduced to make one of his speeches 
by Coxey's man, Carl Browne. How does that sit upon the stomach or 
the Democrat and those who must vote for Bryan? — Courier Journal, 
August 12, 1896. 

The fierce light that beats upon a Presidential candidate is bringing 
f out the weaknesses and absurdities of Mr. Bryan's public career with 
a vengeance. No matter under what guise he presents his views on gov- 
ernmental politics, the same communistic principles are always apparent. 
* * * That any party should have stooped to take up a candidate 
with such crazy-quilt ideas of political economy is hardly more dis- 
> gustig than alarming. What would Jefferson or Hamilton or the other 
great statesmen of the Revolutionary period think if they were informed 



294 WILLIAM JENNINGS BRYAN.- 

that this intellectual whipper-snapper, this puling infant of logic would one- 
day be deemed worthy of a seat at the same table with them. — Courier,- 
Journal, August 26, 1896. 

Bryan's program is on a more majestic scale than Coxey's, but it 
is essentially the same and is fully as ridiculous and as dangerous. — Courier 
Journal, August 26, 1896. 

Of course government ownership is what all Populists desire, and it 
would be especially gratifying to Mr. Bryan and his crowd, since this 
would provide several thousand lucrative places for the spoilsman. — 
Courier Journal, January 13, 1897. 

Without exceptions, the free silver leaders are either visionary men 
of limited business experience, or else mere professional politicians, hold- 
ing or seeking office ***** are both incompetent and obsolete. They 
belong to. a past age. They may flourish a while longer as Populists. But 
they can do nothing as Democrats. They will grow fewer and fewer, and 
beautifully less, until as leaders they peter out altogether. — Courier Journal, 
January 1%, 1897. 

As far as the Courier Journal is concerned it will support NO man 
for office who has the smell of Altgeldism or Tillmanism upon his gar- 
ments, or whose boots carry one speck of Populist mud, either at the 
heel or at the toe. * * * * a short horse is soon curried, and this 16 to 1„ 
go-as-you-please, stick-in-the-mud, free silver short horse, is very short, 
indeed, as a matter of fact, very little short of a jackass. — Courier Journal' 
January 15, 1897. 

"When, last July, a convention met in Chicago, bearing the cre- 
dentials of the National Democracy, authorized to enunciate a Demo- 
cratic platform and choose Democratic leaders ; when that convention 
leaped madly into the arms of Communism, snatched up the alien flag 
of Populism and, amid scenes of wildest abandonment to unreason an J 
passion, proclaimed it the ensign of Democracy ; when the convention, break- 
ing in contempt the time-honored tablets of the father's creed, set up in 
their stead the new faith of all the clashing and clamoring malcontents 
who had fashioned their fanaticism upon opposition to Democracy ; when 
that convention, following out its frantic surrender to heretic dogmas, 
nominated for the Presidency a young and desperate adventurer because 
h<* had the voice and the presence to best give expression to the evil 
passions of the hour, and nominated for the Vice-Presidency a lobbyist 
for Government subsidies to his individual interests, it struck a stinging 
blow full in the face of every true Democrat. — Courier-Journal, September 
t, 1896. 

This youngster, who has set himself up as the financial teacher of 
the American people, travels over the land with a tireless tongue and a 
voluminous vocabulary, blandly telling the people of the impossible things 
that will happen in the future and free coinage of silver, when he is 
utterly ignorant of the simplest facts of our past financial history. — Courier- 
Journal, September 3, 1896. 

The wftrkingman, threatened with the loss of. 49 cents in every 
dollar of T^afees, is consoled with the assurance that should he strike for 
the restoration of the wages he is getting now, in the shape of a larger 
number of silver dollars, he will be allowed to proceed to any acts of 
violence by either the State or National Government. A few workmen 
may be silly enough to accept this substitute of a stone for bread. — Courier- 
Journal, September 12, 1896. 

The speeches which William J. Bryan has been making on his tours 
are, without exception, the most incendiary and dangerous utterances 
ever addressed to the American people by a Presidential candidate. He 
has not been content to hold up himself and his followers as the only 
champions of the poor and oppressed ; he has denounced the supporters 
of. an honest monetar standard aJ no better than midnight robbers, 
and he urges that they be treated as an invading army. He has gone even 
farther than to countenance an open revolution ; he has asked the Ameri- 
can people to become hypocrites and liars. — Courier-Journal, September 
5, 1896. 

Mr. William J. Bryan has come to Kentucky, and Kentuckians have 
taken his- measure. He is a boy orator. He is a distinguished dodger. 
He is a daring adventurer. He is a political fakir. He is not of the 
material of which the people of the United States have ever made a Presi- 
dent, nor is he even of the material of which any party has ever before 
made a candidate for the Presidency.— Courier-Journal, September 15, 1896, 
the day after Bryan's speech in Louisville. 

Mr. Bryan and his silver friends announce that they are not afraid 
to be called demagogues. Let us remind them that Benjamin Franklin once 
observed that experience was a dear school, but fools would learn in no 
other, and often not even in that. In no country in the world are 
demagogues so despised and distrusted as in America. Let the people 
once understand Bryan's real character and they will drop him as com- 
pletely as they dropped Denis Kearney and "Gen." Coxey. — Courier-Journal, 
September 13, 1896. 

We are told that the farmers of the West and South will support 
Bryan because they feel that they must fight the "capitalistic classes," 
whose interests, it is alleged, are diametrically opposed to theirs. We 
do not believe this for several reasons. * * * ^e have many farmers 
who are very wealthy men, who have large numbers of employees and 
bank accounts. * * * Now what does this mean? Simply that to the 
repudiators and anarchists like Altgeld, Tillman and Debs, who are tak- 
ing such a pronounced pint in this campaign, the farmer with his com- 
fortable home and comparative financial independence is bound to become 
an object of suspicion and attack — if not now at some very early date. — 
Courier -Journal, September, , 26, 1896. 

Bourfeie Cockran said no brighter, truer thing in hi* great soeech 
here than was embodied in his definition of Populism : "Sonorous declama- 



WILLIAM JENNINGS BRYAN. 295 

tion based upon a fundamental misconception of facts." This satire eats 
like vitriol into the shallow assertions of calamity howlers, but from 
Bryan to Weaver, down to Watson and Blackburn it fits them to a T. — Edi- 
torial, Courier -Journal, October 21, 1896. 

It is apparent that Mr. Bryan is much better adapted for a theatrical 
press agent than for a United States President, but it is also apparent that 
he would shine still better standing on a red wagon oratorically selling 
some magic preparation, like Bryan's blessed balsam for bunions. — Editorial, 
Courier-Journal, October 21, 1S96. 

Bryan is beaten — ingloriously and overwhelmingly. So closes the 
second great era of national peril which has menaced our Government. 
So lift the clouds of fiatism and repudiation which lowered above the land 
in ominous threat of dishonor and disaster. So breaks the sun of a new 
dawn upon our manhood proven, our integrity vindicated, our intelligence 
victorious, our institutions impregnable. * * * Thank God. In the 
name of a long-suffering people, thank . God. — Courier-Journal, November 
k, 1896, editorial headed "The Inevitable." 



"HE IS IN POLITICS BECAUSE IT HELPS THE GATE 
RECEIPTS." 

What Roger C. Sullivan, Democratic National Committeeman, 
Said of Mr. Bryan in 1006. 

[Prom public statement issued at Chicago, September 7, 1906, by Roger C. 
Sullivan, then the Illinois member of the Democratic National Committee.] 

Mr. Bryan has twice led the Democratic party to defeat, the 
second a worse defeat than the first. If he is proud of that 
evidence of the people's confidence in his sincerity, he is welcome 
to it. But his boast of sincerity merits further consideration. 
He insinuates that I make money out of politics, and that his 
sincerity therefore compels him to oppose my participation in 
Democratic affairs. The plain inference is that Mr. Bryan thinks 
it wrong to make money out of politics. This boast of his puts 
the stamp of insincerity all over him. If Mr. Bryan thinks it 
wrong to make money out of politics, he should quit making* 
money. Mr. Bryan has not one dollar that he ever made out 
of anything but politics. He tried to be a lawyer ; he was a 
1 failure at it. He tried to be a newspaper editor ; he was a failure 
at that. He is a now a man of property. As fortunes go, he is 
a rich man. He made every dollar of his fortune out of politics 
as a stepping-stone to the lecture platform. Mr. Bryan dis- 
covered, many years ago, that he could make his political prom- 
inence pay. He is a shrewd advertiser, and .in his way a clever 
business man. He has discovered that so long as he is candi- 
date for President and a possible nominee, gifted with the ability 
to weave flowing sentences into well-rounded periods, the public 
will come to hear him at so much a head. He is in politics 
because it helps the gate receipts. Like the actresses who have 
discarded the stolen diamonds dodge for the greater publicity 
of a divorce suit, Mr. Bryan will quit running for President 
and will quit politics just as soon as he discovers that some 
other form of advertising will bring more dollars to the box 
office when he is announced to appear on the stage. 



CENTRALIZATION. 

Marked Change in Democratic Sentiment as Illustrated by 
tlie Bryan Platforms. 

The New York Times (Democratic) publishes the following 
extracts from national Democratic platforms, showing how the 
Bryan platform runs counter to Democratic tradition: 

1872 
Local self-government with impartial suffrage will guide the 
rights of all citizens more securely than any centralized power. 

1876. 
* * * A corrupt centralism which * * has honeycombed 

the offices of the Federal Government. 



296 WILLIAM JENNINGS BRYAN. 

} 1880 

* * * Opposition to centralizationism and to that dan- 
gerous spirit of encroachment which tends to consolidate the 
powers of all the departments in one, and thus to create, what- 
ever the form of government, a real despotism. 

1884. 
The reserved rights of the States and the supremacy of the 
Federal Government within the limits of the Constitution will 
ever form the true base of our liberties, and can never be sur- 
rendered without destroying that balance of rights and powers 
which enables a continent to be developed in peace and social 
order to be maintained by means of local self-government. 

1888. 

* * * Strictly specifying every granted power and ex- 
pressly reserving to the States or people the entire ungranted 
residue of power. 

1892. 
The tendency to centralize all power at the Federal capital 
has become a menace to the reserved rights of the States that 
strikes at the very roots of our Government under the Constitu- 
tion, as framed by the fathers of the Republic. 

1896. 

During all these years the Democratic party has resisted the 
tendency of selfish interests to the centralization of govern- 
mental power and steadfastly maintained the integrity of the 
dual system of government established by the founders of this 
republic of republics. 

1900. 
Bryan's platform contains no reference to centralization. 

1904 
Under them (the Democratic party) local self-government 
and national unity and prosperity were alike established. 

1908. 

We favor such legislation as will increase the power of the 
Interstate Commerce Commission. 

We believe that in so far as the needs of commerce require 
an emergency currency such currency should be issued, con- 
trolled by the Federal Government. 

We pledge the Democratic party to the enactment of a law 
to regulate the rates and services of telegraph and telephone 
companies engaged in the transaction of messages between the 
States, under the jurisdiction of the Interstate Commerce Com- 
mission. 

Among the additional remedies we specify * * * a license 
system which will, without abridging the right of each State 
to create corporations or its right to regulate as it will foreign 
corporations doing business within its limits, make it necessary 
for a manufacturing or trading corporation engaged in inter- 
state commerce to take out a Federal license. 



Passed at tlie instance of Mr. Roosevelt, it (the Rate law)' 
stands as a monument to the principle which he has in- 
cessantly maintained in speech and action, that the laws 
mnst he so made that they can he enforced as well against 
the sins of the wealthy and the powerful as against those 
of the poor.— Hon. Wm. H. Taft, at Columbus, Ohio. 

Mr. Bryan says he would extirpate trusts, root and 
branch. If Mr. Bryan's language is more than mere rhetoric 
and he means to seize the property, to divide it up and 
sell it in pieces, and disassemble the parts, then I am not 
in favor of his method of dealing with trusts, because I 
believe that such large combinations legitimately conducted 
greatly add to the prosperity of the country. — Hon. Wm. H. 
Taft, at Columbus, Ohio. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure; B T VAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



I 



'EQUAL JUSTICE TO ALL MEN WITH- 
OUT REGARD TO RACE OR COLOR" 



The Demand of the Republican Party— Contrast the Attitude 
of the Democratic Leaders and Party. 

REPUBLICAN SENTIMENTS. DEMOCRATIC SENTIMENTS. 



"The Republican party has 
been for more than fifty years 
the consistent friend of the 
American negro. It gave him 
freedom and citizenship. It 
wrote into the organic law the 
declarations that proclaim his 
civil and political rights, and 
it believes to-day that his note- 
worthy progress in intelli- 
gence, industry and good citi- 
zenship has earned the respect 
and encouragement of the na- 
tion. We demand equal jus- 
tice for all men, without re- 
gard to race or color ; we de- 
clare once more, and without 
reservation, for the enforce- 
ment in letter and spirit of the 
thirteenth, fourteenth and fif- 
teenth amendments to the 
Constitution, which were de- 
signed for the protection and 
advancement of the negro, and 
we condemn all devices that 
have for their real aim his dis- 
franchisement for reasons of 
color alone, as unfair, unAmer- 
ican and repugnant to the su- 
preme law of the land." — From 
Republican platform adopted 
at National Convention 1908. 



"The white man in the South 
has disfranchised the negro in 
self-protection ; and there is 
not a Republican in the North 
who would not nave done the 
same thing under the same 
circumstances. The white men 
of the South are determined 
that the negro will and shall 
be disfranchised everywhere it 
is necessary to prevent the re- 
currence of the horrors of car- 
petbag rule." — William Jen- 
nings Bryan in speech at New 
York in 1908. 

"I favor, and if elected will 
urge with all my power, the 
elimination of the negro from 
politics." — Hoke Smith, Gover- 
nor of Georgia ; Secretary of 
Interior under President Cleve- 
land. 

"In my opinion the granting 
of universal suffrage to the 
negro was the mistake of the 
nineteenth century." — Col. Hil- 
ary A. Herbert, Secretary of 
Navy under President Cleve- 
land. 

"We stuffed ballot boxes, we 
shot negroes ; we are not 
ashamed of it." — Senator Till- 
man in United States Senate. 



THE ELECTION LAWS OF THE SOUTH. 

The folowing are sections of some of the election laws of the 
South, many of them framed for the avowed purpose of depriv- 
ing Afro-American citizens of the right to vote. It will be seen 
that the Louisiana and North Carolina laws are especially 
framed for the purpose of making the educational test apply 
only to the Afro-Americans, and all persons who were voters 
prior to January 1, 1867, and their lineal descendants are exempt 
from the provisions of the law, which disqualifies persons because 
of illiteracy : 

Mississippi. 

"Section 244. On and after the first day of January, 1892. every 
elector shall, In addition to the foregoing qualifications, be able to read 
iny section of the Constitution of this State ; or he shall be able to under- 
itand the same when read to him, or to give a reasonable interpretation 
thereof * * *." 

Lftmisiuiia. 

"Section 3. He (the voter) shall be able to read ami write, and 
ihall demonstrate his ability to do so when he applies for registration, by 
making, under oath administered by the registration officer or his deputy, 
written application therefor, in the English language or his mother tongue, 

897 



298 ^ EQUAL JUSTICE TO ALL. 

which application shall contain the essential facts necessary to show that 
he is entitled to register and. vote, and shall be entirely written, dated 
and signed by him, in the presence of the registration officer or his 
deputy, without assistance or suggestion from any person or memorandum 
whatever, except the form of application hereinafter set forth. * • * + 
"Section 5. No male person who was on January 1st, 1867, or at 
any date prior thereto, entitled to vote under the Constitution or statutes 
oJ' any State of the United States, wherein he then resided, and no son 
or grandson of any such person not less than twenty-one years of age at 
the date of the adoption of this Constitution, and no male person ot 
foreign birth, who wal naturalized prior to the first day of January, 1885, 
shall be denied the right to register and vote in this State by reason 
of his failure to possess the educational or property qualifications pre- 
ciibed by this Constitution; provided, he shall have resided in this 
Strt.e for five years next preceding the date at which he shall apply for 
registration, and shall have registered in accordance with the terms of this 
article prior to September 1, 1898, and no person shall be entitled to 
register under this section after that date." 

North Carolina. 

"Section 4. Every person presenting himself for registration shall 
be able to read and write any section of the Constitution in the English 
language. * * But no male person who was, on January 1, 1867, or 
at any time prior thereto, entitled to vote under the laws of any State 
in the United States wherein he then resided, and no lineal descendant 
of any such person shall be denied the right to register and vote at any 
election in this State by reason of his failure to possess the educational 
qualixlca,tions herein prescribed ; Provided, he shall have registered in ac- 
cordance with the terms of this section prior to December 1, 1908. 

"The General Assembly shall provide for the registration of all per- 
sons entitled to vote without the educational qualifications herein pre- 
scribed, and shall, on or before November 1, 1908, provide for the making 
of a permanent record of such registration, and all persons so registered 
shall forever thereafter have the right to vote in all elections by the people 
of this State, unless disqualified under section 2 of this article: Provided, 
such person shall have paid his poll tax as above prescribed." 

Alabama. 

1st. Those who can read and write any article of the Constitution 
of the United States in the English language, and who are physically 
•unable to work ; and those who can read and write any article of the 
Constitution of the United States in the English language and who have 
worked and been regularly engaged in seme lawful employment, business 
or occupation, trade or calling for the greater part of the twelve months 
next preceding the time they offer to register, and those who are unable 
to read and write, if such inability is due solely to physical disability ; or 

2nd. The owner in good faith in his own right, or the husband of 
a woman who is the owner in good faith in her own right, of forty acres 
of land situate in this State, upon which they reside; or the owner in 
gocd faith in his own right or the husband of any woman who is the 
owner in good faith in her own right of any real estate situate in the 
State assessed for taxation at the value of three hundred dollars or more, 
or the owner in good faith in his own right or the husband of any woman 
who is the owner in good faith of her own right of personal property in 
this State assessed at taxation at three hundred dollars or more ; pro- 
vided that the taxes due upon such real estate or personal property 
for the year next preceding the year for which he offers to register shall 
have been paid unless the assessment shall have been legally contested 
and is undetermined. 

South Carolina. 

Section 174. Every male citizen of this State and of the United 
States, twenty-one years of age and upwards, not laboring under disa- 
bilities named in the Constitution of 1895 of this State, and who shall 
have been a resident of the State for two years, in the county one year, 
in the polling precinct in which the elector offers to vote four months 
before any election, and shall have paid six months before any election 
any poll tax then due and payable, and who can read and write any 
section of the said Constitution submitted to him by the registration offi- 
cers, or can show that he owns and has paid all taxes collectible due 
the previous year on property in the State assessed at $300 or more and 
who shall apply for registration shall be registered. 

Virginia. 

Sec. 20. Who may register after 1904. 

After the first day of January, 1904, every male citizen of the United 
States having the qualifications of age and residence required by section 
18 shall be entitled to register, provided : 

1st. That he has personally paid to the proper officer all State poll 
taxes assessed or assessable against him under this or the former Consti- 
tution for the three years next preceding that in which he offers to reg- 
ister ; or, if he comes of age at such time that no poll taxes shall have 
been assessed against him for the year preceding the year in which he 
offers to register, has paid one dollar and fifty cents in satisfaction of 
the first year's poll tax assessable against him ; and 

That unless physically unable, he makes application to register in 
his own handwriting without aid, suggestion or memorandum in the 
presence of the registration officers, stating therein his name, age, date, 
and place of birth, residence and occupation at the time and whether he 
has previously voted, and if so, the State, county and precinct in which 
he voted last, and, » 



EQUAL JUti-TlCE TO ALL. 299 

Third. That he answer on oath any ai!d all questions affecting his 
qualifications as an elector submitted to him by the officers of registration, 
which questions and his answers thereto shall be reduced to writing, cer- 
tified by the said officers and preserved as part of their official records. 

Sec. 22. No person who during the late war between the States 
served in the Army or Navy of the Confederate States shall at the time 
be required to pay a poll tax as a prerequisite to the right to vote. * * * 

The Georgia Constitutional Amendment. 
The amendment to the Constitution of Georgia, which is to 
be submitted to the voters of that State in November, is as fol- 
lows : 

"Section 1. Elections by the people shall be by ballot, and only 
those persons shall be allowed to vote who have first been registered in 
accordance with the requirements of law. 

"Par. 2. Every male citizen of the State who is a citizen of the 
United States, twenty-one years old or upwards, not laboring under any 
of the disabilities named in this article, and possessing the qualification:-, 
provided by it, shall be an elector and entitled to register and vote at 
any election by the people ; provided, that no soldier, sailor, or marine in 
the military or naval service of the United States shall acquire the rights 
or an elector by reason of being stationed on duty in this State. 

"Par. 3. To entitle a person to register and vote at any election 
by the people, he shall have resided in the State one year next pre- 
ceding the election, and in the county in which he offers to vote six 
months next preceding the election, and shall have paid all taxes which 
may have been required ef him since the adoption of the Constitution 
of Georgia of 1877, that he may have had an opportunity of paying 
agreeably to lav/. Such payment must have been made at least six 
months prior to the election at which ke offers to vote, except when such 
elections are held within six months from the expiration of the time 
fixed by law for the payment of such taxes. 

"Par. 4. Every male citizen of this State shall be entitled to reg- 
ister as an elector and to vote at all elections of said State who is not 
disqualified under the provisions of section 2 of article 2 of this Con- 
stitution, and who possesses the qualifications prescribed in paragraphs 
2 and 3 of this section or who will possess them at the date of the elec- 
tion occurring next after his registration, and who in addition thereto 
comes within either of the classes provided for in the five following sub- 
divisions of this paragraph. 

"1. All persons who have honorably served in the land or naval 
forces of the United States in the Revolutionary war, or the war of 
1812, or in the war with Mexico, or in any war with the Indians or in 
the war between the States, or in the war with Spain, or who honorably 
served in the land or naval forces of the Confederate States, or of the 
State of Georgia in the war between the States, or, 

"2. All persons lawfully descended from those embraced in the 
sub-division next above, or, 

"3. All persons who are of good character, and understand the 
duties and obligations of citizenship under a republican form of govern- 
ment, or, 

"4. All persons who can correctly read in the English language 
any paragraph of the Constitution of the United States or of this State, 
and correctly write the same in the English language when read to him 
bv any one of the registrars, and all ppi-sons who, solely because of 
physical disability, are unable to comply wiTn the above requirements, bin 
who can understand and give reasonable interpretation of any paragraph 
of the Constitution of the United States or of this State, that may be 
read to them by one of the registrars, or, 

"5. Any person who is the owner in good faith in his own right of 
at least forty acres of land situated in this State, upon which he resides, 
or is the owner in good faith in his own right, of property situated in 
this State and assessed for taxation at the value of five hundred dollars.'' 

Par. 5. The right to register under sub-divisions 1 and 2 of para- 
graph 4 shall continue only until January 1, 1915. But the registrars 
shall prepare a roster of all persons who register under sub-divisions 
I and 2 of paragraph 4, and shall return the same to the Clerk's office 
of the Superior Court of their counties and the Clerks of the Superior 
Court shall send copies of the same to the Secretary of State, and it 
shall be the duty of these officers to record and permanently preserve 
these rosters. Any person who has been once registered under either 
of the sub-divisions 1 or 2 of paragraph 4, shall thereafter be permitted 
to vote, provided, he meets the requirements of paragraphs 2 and 3 of 
this section. 

Par. 6. Any person to whom the right of registration Is denied by 
the registrars on the ground that he lacks the qualifications set forth 
in the five sub-divisions of paragraph 4, shall have the right to take 
an appeal, and any cit^en may enter an appeal from the decision of 
the registrars allowing any person to register under said sub-divisions. 
Ml appeals must be filed in writing with the registrars within ten days 
from the date of the decision complained of and shall be returned by 
i he registrars to the office of the Clerk of the Superior Court to be tried 
as other appeals. 

Par. 7. Pending an appeal and until the final decision of the case, 
the Judgment of the registrars shall remain in full force. 

Par. 8. No person shall be allowed to participate in a primary of 
my political party or a convention of any political party in the State 
who is not a qualified voter. 

Maryland. 

The following is the text of the amendment to the Constitu- 
tion of the State of Maryland, which is to be submitted to the 
voters of that State at the November election: 



300 EQUAL JUSTICE TO ALL. 

Section 1. All elections shall be by ballot, and every male citizen 
of the United States of the age of twenty-one or upward, who has been 
a resident of the State for two years and of the Legislative District of 
Baltimore City or in the county in which he may offer to vote, for one 
year next preceding the election, and who, moreover, is duly registered 
as a qualified voter as provided in this article, and shall be entitled 
to vote in the ward -or election district in which he resides, at all elec- 
tions hereafter to- be held in this State, and in case any county or city 
shall be so divided as to form portions of different electoral districts 
for the election of Representatives in Congress, Senators, Dele-gales or 
other officers, then, to entitle a person to vote for such officers, he musi 
have been a resident of that part of the county or city which shall 
form a part of the electoral district in which he offers to vote for one 
year next preceding the election ; but a person who snail have acquired a 
residence in such county or city entitling him to vote at any such elec- 
tion shall be entitled to vote in the election district from which he re- 
moved until he shall have acquired a residence in the part of the county 
or city to which he has removed. 

Every male citizen of the United States having the above presoribed 
qualifications of age and residence shall be entitled to be registered so 
as to become a qualified voter if he be : 

First. — A person who, on the first day of January in the year eighteen 
hundred and sixty-nine, or prior thereto, was entitled to vote under the 
laws of this State,, or of any other State of the United States, wherein 
he then resided ; or 

Second. — A male descendant of such last mentioned person ; or 

Third. — A foreign-born citizen of the United States, naturalized be- 
tween the first day of January in the year eighteen hundred and sixty- 
nine and the date of the adoption of this section of this article ; or 

Fourth. — A male descendant of such last mentioned person ; or 

Fifth. — A person who, in the presence of the officers or registration, 
shall, in his own hand-writing, with pen and ink, without any aid, sug- 
gestion,- or memorandum whatsoever, and. without any question or di- 
rection addressed to him by any of the officers of registration, make ap- 
plication to register, correctly stating in such application his name, age, 
date and place of birth, residence and occupation at the time and for 
the two years next preceding ; the name or names of his employer or 
employers, if any, at the time and for the next two years preceding, and 
whether he has previously voted, and if so, the State, county or city, and 
district or precinct in which he voted last, and also the name in full 
of the President of the United States, »f one of the Justices of the Su- 
preme Court of the United States, of the Governor of Maryland, of one 
of the Judges of the Court of Appeals of Maryland and of the Mayor 
of Baltimore City, if the applicant resides in Baltimore City, or of one 
of the County Commissioners of the county in which the applicant resides ; 
and any person who is unable to comply with the foregoing requirements 
as to making application for registration in his own hand-writing, solely 
because he is physically disabled from so doing ; or 

Sixth. — A person, or the husband of a person, who, at the time ot 
his application for registration, is the bona fide owner 'of real or personal 
property in an amount of not less than five hundred dollars, is assessed 
therefor on the tax books of the City of Baltimore, or of one of the coun- 
ties of this State, has been such owner and so assessed for two years 
next preceding his application for registration, shall have paid, and shall 
produce receipts for, the taxes 'on said property for said two years, and 
shall at the time of his application make affidavit before the officers of 
registration that he is, or that he is the husband of the person who is, 
the bona fide owner of the property so assessed to him or to her, as 
the case may be, and that he or she has been the owner for two years next 
preceding his application. 

No person not qualified under some one of the above clauses shall be 
entitled to be registered as a qualified voter or be entitled to vote. 

Every written application to be registered, presented to the officers 
of registration by any person applying to be registered under the above 
fifth clause, shall be carefully preserved by said officers of registration 
and shall be produced in any Court, if required, as hereinbefore provided. 

The affidavit of any applicant for registration, duly made to the officers 
of registration or in Court, that he, the applicant, is a person who was 
entitled to vote on or before the first day of January in the year eighteen 
hundred and sixty-nine, as aforesaid, or that *he has become a naturalized 
citizen of the United States between the first day of January in the year 
eighteen hundred and sixty-nine and the date of the adoption of this 
section of . this article, as aforesaid, or his affidavit upon information 
and belief that he is a descendant of a person who was entitled to vote 
on or before the first day of January in the year eighteen hundred and 
sixty-nine, or that he is a descendant of a person who has become a natu- 
ralized citizen of the United States between the first day of January in 
the year eighteen hundred and sixty-nine and the date of the adoption 
of this section of this article, shall be prima facie evidence of any of 
said facts so sWorn to. 

A willfully false statement upon the part of any applicant for regis- 
tration in relation to any of the matters aforesaid shall be perjury, and 
punishable as perjury is punished by the laws of this State. 

Any person who feels aggrieved by the action of any board of officers 
of registration in refusing to register him as a qualified voter, or in 
registering any disqualified person, may at any time, either before or 
after the last session of the board of officers of registration, but not later 
than the Tuesday ne^t preceding the election, file a petition, verified by 
affidavit, in the Circuit Court for the county in which the cause of com- 
plaint arises, or, if the cause of complaint arises in Baltimore City, in 
any court of common-law jurisdiction in said city, setting forth the 
grounds of his application and asking to have the action of the board 
of officers of registration corrected. 

The court shall forthwith set the petition for hearing and direct 
summons to be issued requiring the board of officers of registration com- 
plained against in said petition to attend at the hearing in person or 



EQUAL JUSTICE TO ALL. Ml 

by counsel, and where the object of the petition is to strike off the name 
of any person, summons shall also be issued for such person, which shall 
be served by the Sheriff within the time therein designated ; and said 
several courts shall have full jurisdiction and power to review the action 
of any board of officers of registration and to grant or withhold, as it may 
seem lawful and proper, the relief prayed for in the premises. 



THE JIM-CROW CAR. 

How the Democratic Legislators of the South Endeavor to De- 
grade and Humiliate the Afro-American. 

In their efforts to degrade and humiliate the race, the Demo- 
cratic legislators of every Southern State have provided a system 
of "jim-crow" cars for Afro-Americans. 

The laws say that the accommodations "shall be equal, but 
separate." As a matter of fact, they are seldom equal and usually 
very inferior, especially on the smaller lines, where wornout cars, 
which are generally in a filthy condition, are used for Afro- Amer- 
icans. 

On the larger roads better cars are used, but the "jimcrow" 
car is generally placed next to the locomotive, where the occu- 
pants get the full benefit of the dust and smoke. 

Several States have enacted laws forbidding sleeping car com- 
panies to sell berths to Afro- Americans. 

These laws were not passed for the reason that Southern 
Democrats are anxious to avoid close proximity to Afro- Ameri- 
cans, for servants are allowed under the law to ride in the same 
car with the whites. The idea, which is to humiliate the race, is 
clearly expressed by H. D. Wilson, a Southern Democrat, member 
of the Louisiana Legislature and author of the Louisiana jim- 
crow car law, who said : 

"It is not only the desire to separate the whites and blacks on the 
railroad for the comfort it will provide, but also for the moral effect. 
The separation of the races is one of benefit, but the demonstration of 
the superiority of the white man over the negro is a greater thing. There 
is nothing which shows it more conclusively than the compelling of 
negroes to ride in cars marked for their especial use." 

Recently a number of Afro-American bishops, ministers, doc- 
tors, lawyers, and other prominent men visited the White House 
and called the attention of President Roosevelt to the condition 
of affairs on the Southern railroads, and he at once directed the 
Interstate Commerce Commission to institute proceedings against 
the roads and compel them to furnish equal accommodations. 

Afro-Americans in Government Service. 

In a number of speeches William J. Bryan has said . 

"The Afro-American has bestowed presidencies upon the Re- 
publican party and received janitorships, in return." 

The statement is absolutely false. The Afro-American has re- 
ceived more recognition under the Roosevelt Administration than 
ever before in the history of this country. That the places have 
not been confined to janitorships will be seen by the following 
list showing the official positions and occupations of Afro-Ameri- 
cans in the service of the United States Government : 

Auditor of the Navy Department, assistant district attorneys, 
assistant librarians, architects, assistant postmasters, assistant 
weighers, attorneys, bookbinders, bookkeepers, boatmen, collect- 
ors of customs, collectors of internal revenue, consuls, chiefs of 
division, compositors, chaplains, custodians, cleaners, caster help- 
ers, clerks, counters, charwomen, carriage drivers, deputy collect- 
ors of customs, deputy collectors of internal revenue, deputy 
United States marshals, domestics and waiters, draughtsmen, en- 
voy extraordinary and minister plenipotentiary, examiners ©f 
merchandise, engineers, elevator conductors, folders, fan 
fireraeu.^floor hands, gaugers, guards, heads of depa 
helpers, inspectors of customs, immigrant ins 
janitors, letter carriers, laboratory assistant laborers, mi 
resident and consul general, musicians, messengers, n 
boys, machine operators, monotype keyboard operators, mimeo- 
graph operators, openers and packers, postm i 

iners, pressmen, press feeders, pay clerks, private secretaries, re- 
ceivers of public monies, register of treasury, registers of land of- 
fices, recorder of deeds, railway postal clerk-, nil ' delii ry car- 
riers, surveyor-general, superintendents of c ion. sam- 



302 



EQUAL JUSTICE TO ALL. 



piers, shippers, stenographers and typewriters, storekeepers, 
skilled laborers, sewers, stablemen, teachers, translators, time- 
keepers, wagon messengers, watchmen, wrappers, wagon drivers. 

The highest salary paid an Afro-American is received by the 
Envoy Extraordinary and Minister Plenipotentiary of the United 
States to Haiti, whose salary is $10,000 per annum. A number of 
government officials receive from $2,500 to $5,000 per year. Clerks 
are paid from $900 to $1,800. 

The number of Afro- Americans in the service of the Govern- 
ment, exclusive of the Army and Navy, has more than doubled 
in the last four years of the Roosevelt Administration, and ag- 
gregate pay has increased from $3,000,000 in 4904 to $8,000,000 in 
1908. 

One of the most important offices in the Treasury Depart- 
ment, that of the Register of the Treasury, has been continuously 
filled by colored men, under Republican appointment, during more 
than a quarter of a century, while under Democratic administra- 
tions during that time no Negro was considered worthy to 
occupy that position. The importance of this office is indicated 
by the fact that the signature of the Register as well as that of 
the Treasurer of the United States is attached to all paper 
currency issued by the Government, and the signature of a colored 
man has thus been one of the two names attached to every piece 
of paper money issued under Republican administrations since 
1881, when Blanche E~. Bruce was appointed Register of the 
Treasury ; while under Democratic administrations names of 
white Democrats were substituted when Rosecrans and Tillman, 
respectively, were appointed to that position. 

The following table shows the number of Afro- American em- 
ployees in the service of the Federal Government : 

Afro- American officers, clerics, and other employees in the service 
of the United States Government, 1908. 



Diplomatic and consular service 

Departmental Service, Washington, D. 

State 

Treasury 

War 



Navy 

Post Office 

Interior 

Justice 

Agriculture 

Commerce and Labor 

Government Printing Office 

Interstate Commerce Commission 

United States Capitol—-- -— ._ 

Washington, D. C, City Post Office- 
District of Columbia Government, 
laborers 



including unskilled 



Departmental Service at large: 

Customs and Internal Revenue 

Post Office 

Interior 

Commerce and Labor 

United States Army, officers 

United States Army, enlisted mem- 
Miscellaneous, including unclassified. 



Total. 



Recapitulation by localities: 

Foreign stations 

Washington, D. C 

Chicago, 111 

Indianapolis, Ind 

New Orleans, La 

Boston, Mass 

Mobile, Ala j 

Detroit, Mich 

Baltimore, Md 

Brooklyn, N. Y 

Richmond, Vs 

Cleveland, Ohio 

Denver, Co'.o 

At miscellaneous points — 



Total. 



No. 



19 
689 
146 

47 
176 
405 

22 
120 
119 
552 

31 
185 
190 

2,798 



585 

2,958 

23 

66 

11 

2,890 

1,935 



13,978 



11 

5,499 

529 

35 

244 

79 

50 

31 

70 

23 

75 

30 

17 

7,285 



13,978 



Salaries. 



$35,000 

14,200 

470,201 

103,8)2 

35,736 

103,468 

237,775 

14,300 

63,924 

17,040 

376,180. 

15,440 
126,420 
150,240 

1,252,588 



492,181 

2,298,421 

26,226 

44,002 

29,285 

901,083 

1,161,230 



5,032,355 



$35,500 

3,044,404 

431,704 

25,910 

231,162 

67,480 

43,7-0 

25,210 

49,085 

18,100 

62, SOD 

25,300 

15,200 

3,956,690 



$8,032,355 



EQUAL JUSTICE TO ALL. 303 

"We Deny the Negro t!ie Right to Vote and Hold Office, hut 
Have Never Denied Him the Right to Work." 

[Extract from remarks of Hon. THOMAS SLIGHT of Mississippi, in dally 
Congressional Record, March 16, 1901.] 

What is called the "negro problem" has become a question of 
national interest, and demands attention, wherever, North and 
South, the negro appears in any considerable numbers. Practi- 
cally all of the Southern States, in which the negro Joints such a 
percentage of the population as to make him a political factor to 
be reckoned with, have by constitutional provision deprived him 
of his poiccr for harm in the administration of our domestic af- 
fairs, and we have done it because it was absolutely accessary to 
protect our rjeople from financial ruin and to preserve our civili- 
zation. For a time ice were compelled to employ methods that 
were extremely distasteful and rery demoralizing, but now ice 
arc accomplishing the same and even better results by strictly 
constitutional and legal procedure. For more titan ten year* the 
negroes of Mississippi have understood that they were not to be 
allowed to participate in State or county governments, and as a 
result ice have had but little trouble with then!, and they have 
been better satisfied and more prosperous than at any time since 
their emancipation. We recognize that the negro is a producer of 
wealth, especially in our cotton fields, and this fact-, coupled with 
the naturally kind feelings entertained for him by the white 
people with whom he has lived all his life, gives aim an opportu- 
nity for honest, productive labor not enjoyed by his race any- 
where else. We deny him the right to vole, under certain con- 
ditions, and to hold office, but have never denied him the right to 
work for an honest living. 

"We Stuffed Ballot Boxes, We Shot Them, We are Xot Ashamed 

of It." 

[Extract from remarks of Hon. BENJAMIN R. TILLMAN of South Carolina, 
in daily Congressional Record, February 28, 1900.] 

I will tell you. while I am talking about negro suffrage, why 
they are so dangerous as voters. In any State where the whites 
divide — and they have divided in every Southern State except 
mine and Mississippi — into Populists and Democrats; the negro 
has been the balance of power, through which one side or the 
other has controlled the elections by means of bribery, for • .-.<■ 
negro vote vas a purchasable one. Therefore we have been con- 
fronted by the condition of a large, ignorant, debased vote, thrust 
upon us by the fourteenth and fifteenth amendments. * * Vet 
you stood up here and insisted that we must give these people 
a "free vote and a fair count.'" They had it for eight years, as 
long as the bayonets stood there, and in 1876 they sent more bayo- 
nets, because we had got the devil in us by that time and we did 
not care whether we had any government. We preferred to have a 
United States Army officer rather than a government ofvfiarpet- 
baggers and thieves and scallywags and scoundrels, who hud 
stolen everything in sight and had mortgaged posterity: who had 
run their felonious paws into the pockets of posterity by issuing 
bonds. When that happened, ire took the government away. We 
stuffed the ballot boxes. We shot them. We are not ashamed of 
it. With that system — force, tissue ballots, etc. — we got tired our- 
selves. So we had a constitutional convention, and we eliminated, 
as I said, all of the colored people whom we could under t lie four- 
teenth and fifteenth amendments. 

"A Horde of Beings who Have Fortvot ten the God that Made 
Them." 

[Extract from speech of Hon. ADAM M. BYRD of Mississippi, in daily Con- 
gressional Record, 60th Congress, 1st Session, .January 24, 1908.] 

Mr. Chairman, above all things, we are going to stand by our 
franehise laws, though every negro should Leave thai section. 
* * There are fewer colored people in Mississippi bo-day than 
ten years ago. and the Slate is being blessed by their departure. 
The honest white laborers are largely doing our farm work. 
They subscribe to all the virtues of an enlightened civilization. 



304 EQUAL JUSTICE TO ALL. 

They believe in the education of their children — in schools, in 
homes, in churches, in society, in Christianity, in God, and in 
their country — and I for one will never vote to compel them to 
labor in competition with a being or horde of beings who have 
forgotten the God that made them, who never knew an obliga- 
tion to society, who are void of patriotism, who believe in rear- 
ing their offspring in ignorance and vice, and who can live on 
less than one-half it takes to bring comfort to the home of the 
average white farmer. 

-"No Salvation for the Soath Short of the Repeal of the Con- 
stitutional Amendments. 

[Extract from remarks of Hon. JAMES M. GRIGGS of Georgia, in daily 
Congressional Record, April 21, 1908.] 

There is not a white man in any of the so-called negro States 
who would not gladly see the repeal of the constitutional amend- 
ments making the negro a citizen and a voter. While this is 
true, there is a disposition in some quarters of the South to 
laugh at the efforts of earnest, patriotic men in this direction. 
There is no complete salvation for the South outside of this one 
thing. Many gentlemen say it is impossible. The same gentle- 
men would very probably have said ten years ago that present 
conditions and feelings of the people North and South on the 
social side of this question were impossible. This is absolu 
necessary to our final salvation. Everything else is a miserably 
makeshift, only to tide us over to the time when public opiniori 
everywhere will approve of the repeal of these amendments 
and the correction of these terrible mistakes. A union half white 
and half black can live no more than a union "half slave and 
half free." Separation of the races would be best for white and 
black alike; but it seems that neither race is yet ready for that. 
The time will be, however, in the years to come when the man- 
hood of the country, North and South, white and black alike, will 
demand it. Separation will not come in our generation, but many 
of us here to-day will live to see the repeal of these amendments. 
Separation will follow disfranchisement, as the night the day. 



"This is the Country of the White Man, Not the Home of the 

Moagrel." 

[Extract from remarks of Hon. FRANK CLARK, of Florida, in daily Con- 
gressional Record, May 11, 390S.] 

Having had the experience of a lifetime with them, I express 
it as my deliberate judgment that it is better to keep them sep- 
arate — better for them, better for their race, better for every- 
body ; and this system is working well in the State of Florida, in 
our larger cities, where we have street cars, and upon our 
railroads all over the State. There never has been any confusion 
or trouble on account of the separation of the races on public 
conveyances. Before the adoption of that system there 
great deal of trouble. I admit that at times it was ea 
white man. I am not hold 
This class of white man is 

country. I have seen him in the North, in the East, in the We 
and in the South. I have seen a lot of white people of that sort, 
and when one of this class gets a drink or two inside of him 
he gets himself inside of a street car, there is generally tro 
If you desire to reduce the chances of trouble to the mini 
and subserve the best interests of all the people, you had better 
keep the races apart in all public conveyances. Imagine a nice, 
new j)assenger coach, packed with dirty, greasy, filthy ne^ 
down South, in midsummer, and you can readily understand why 
that car does not long remain as g'ood, as clean, and as desirable 
as a similar car occupied exclusively bjr white travelers. * * * 
The gentleman from New Kork [Mr. Drtscoll] says that we 
have been allowed to have our own way down South with this 
question for so long that we have grown "bold" enough to 
come on the floor of this House and make demands for this 
kind of legislation. The gentleman uses the word "bold" as 
though he thought we did not have the right to come here 
make demands. We do demand, and we have the right to de- 



ciuopuioii o± tnai; system uiere 
limit that at times it was caused by tlie 
olding him up as entirely blam 
is not peculiar to any section of our 



EQUAL JUSTICE TO ALL. 305 

mand. This is our country, as it was the country of our 
fathers. The country of the white man, not the home of the 
mongrel. It will always be the white man's country. If the 
black man and the yellow man each desire to remain with us, 
occupying- the sphere in life for which God Almighty intended 
each, let them do so. If not content with that let them go 
•lsewhere. 

"The Intelligent Negro Does Not Worship False Gods." 

[Extracts from remarks of Hon. EDWARD S. TAYLOR, Jr. (Republican), In 
daily Congressional Record, May 27, 1908.] 

With defeat staring it in the face, without a real and virile is- 
sue except those embodied in the "Peerless One," Democracy is 
preparing for the conflict in expectation of winning with the votes 
of negroes in the North and without the votes of negroes in the 
South. And this delusion, Mr. Speaker, is the crowning climax 
of political clowning. The negro, disfranchised in the South by 
the Democratic party, is expected to swing Republican States of 
the North into the power of his oppressors. From the days of its 
• birth this party has not only halted its boasted Democracy at the 
color line, but bragged about it. 

The intelligent negro of the North does not worship false 
gods. He is thoroughly familiar with the unfortunate condition 
of the colored man in the South. He knows that at heart the 
leaders of the Democratic party do not wish his association in 
politics, but only hope to use him and to disgruntle him against 
the Republican party in order that they may, without benefit to 
him, be elevated into power. It does not need the declaration of 
the gentleman from Illinois [Mr. Rainey] that the Democratic 
party is a "white man's party" to convince them that their 
interests and future welfare lie in the hands of the Republican 
party and its patriotic electors. 

Who is this citizen whom Mr. Rainey and his colleagues find 
so obnoxious who is not permitted to vote in the South? Can 
they not for a moment cease in hunting isolated cases where 
criminal negroes have committed grave outrages and look to the 
broad development of the negro as a race? What has he done to 
earn his citizenship? 

Education for the negro began with the emancipation procla- 
mation. The illiteracy of the whole race, which may be admitted 
to have been total at emancipation, has been reduced to 44.5 per 
cent when the last census was taken. In the ten years from 1890 
to 1900 it had been reduced from 57.1 per cent to 44.5 per cent. 
Italy to-day has 38 per cent of illiteracy; Spain, 68 per cent, and 
Portugal, 79.2 per cent. These are white countries wit^i centuries 
of civilization behind them. There are 40,000 negro students in 
higher institutions of learning, pursuing all branches from trade 
to classical and scientific courses. Forty thousand colored youth 
have graduated from secondary institutions ©f learning, and 4,000 
from colleges. The race has developed 30,000 teachers, more 
than 16,000 clergymen, 4,000 musicians, more than 2,000 actors 
and showmen, more than 1,700 physicians and surgeons, about 
1,000 lawyers. 300 journalists, 250 'dentists, 236 artists and art 
teachers, 100 literary persons, 120 civil engineers and surveyors, 
82 bankers and brokers, and 52 architects. It has about 200 in- 
stitutions for higher education in the United States. In 1904 it 
owned property amounting to $1,100,000,000. In 1900 the farm 
property belonging to negroes was valued at $200,000,000, almost 
$300 for each negro family. It operates 746,715 farms and owns 
187,797 farms, or 25 per cent of the total. It rents 557,174 farms, 
or 74.6 per cent of the total. This is not a bad showing for a race 
which gentlemen of the minority have declared unfit to exercise 
its citizenship, and which they claim to be a purchasable quantity 
1 when it comes to exercise its suffrage. 

I Mr. Bryan's "Commoner" on Uic Race Question at the Sontli. 

[Prom the "Commoner," Deeomb«r 3. 19(H.] 

If the race question presented itself to the North as it does to 
the South, it is not likely that if would be met in a different 
spirit or in a different way. and if the race question were a 
Northern question rather than a Southern one, the people of the 



306 EQUAL JUSTICE TO ALL. 

South would be as indifferent to it as the people of the North 
are. There is no disposition in the North to interfere with the 
manner in which the problem is now being worked out by the 
South. Once in a while the question is raised, but it is usually 
for political purposes. It is not likely that any serious attempt 
will be made to secure national legislation on the subject. If 
such an attempt is made it should be made with logic and with 
light, not with the calling of names and with heat. 

[From the "Commoner," November 1, 1901.] 

But when conditions force the two races to live under the 
same government in the same country, the more advanced race 
never has consented, and probably never will consent, to be dom- 
inated by the less advanced. Whether the conditions in the South 
are such as to justify the amendments which have been adopted 
is a question of fact which must be decided upon evidence — not a 
question of theory which can be settled by those far removed 
from the conditions which have to be considered. 



[From West Virginia Democratic Platform of 1908.] 
Jim Crow Plank. 

We favor the enactment of a law requiring common carriers 
engaged in passenger traffic to furnish separate coaches or 
compartments for white and colored passengers. 

Elective Franchise Plank. 

Believing that the extension of the elective franchise to a 
race inferior in intelligence and without preparation for the wise 
and prudent exercise of a privilege so vital to the maintenance 
of good government was a mistake, if not a crime, committed 
by the Kepublican party, during the reign of passion and 
prejudice following the Civil War, for political ends and pur- 
poses, we declare that the Democratic party is in favor of so 
amending the Constitution as to preserve the purity of the 
ballot, and the electorate of the state from the evil results from 
conferring such power and privilege upon those who are unfitted 
to appreciate its importance, as it affects the stability and 
preservation of good government. 



Plans have been suggested for the migration of the ne- 
groes to some other country, where they would live by them- 
selves and grow up -by themselves, and have a society by 
themselves, and create a nation by themselves. Such a sug- 
gestion is chimerical. The negro has no desire to go, and 
the people of the South would seriously object to his going. 
—Hon. Win. H. Taft, at Plymouth Church, Brooklyn. 

"What the negro and his friends demand is equality of 
enforcement of the law under the Constitution, and toward 
that end I feel convinced that ail the influence of industrial 
progress in the S»uth and the closer union between the 
sections necessarily are making. — Hon. Wm. H. Taft, at 
Plymouth Church, Brooklyn. 

In the history of all the peoples of the earth, there is , 
no more uniform story of absolute fidelity to trnst than that 
which was exhibited by the negroes of the South toward 
the families of their masters, when the men were gone 
to the war, and none but the women and children were 
left at home.— Hon. Wm. H. Taft, at Plymouth Chnrch, Brook- 
lyn. 

I am a protectionist because I can see very clearly that 
the political independence which every patriot would sacri- 
fice his life to preserve to his country can only be safely 
assured when w T e are industrially independent, and I am 
glad, if it requires that lesser sacrifice, to forego a few 
pennies of my savings to do my part to secure that assur- 
ance. — Prof. R. H. Thurston, of Cornell University, in the 
American Economist. 

One vital, dominating fact confronts the Democratic 
party which no oratory", which no eloquence, which no 
rhetoric can obscure: BUY AX'S NOMINATION MEANS TAFT'S 
■ LECTION.— New York World. 



GUARANTEE OF BANK DEPOSITS 



The Democratic platform of 1908 pledges the party to legis- 
lation under which the national banks shall be required to es- 
tablish a guarantee fund for the prompt payment of depositors 
of any insolvent national bank, and making the system available 
to all other banks desiring to join in such plan. The plank, 
which is heralded in Mr. Bryan's "Commoner" as being based 
upon a bill introduced in Congress by Mr. Bryan when a mem- 
ber of that body, is as follows : 

"We pledge ourselves to legislation under whiob the national banks shall be 
required to establish a guarantee fund for the prompt payment of the de- 
positors of any insolvent national bank, under an equitable system which 
shall be available to all State banking institutions wishing to use it. We 
favor a postal savings bank if the guaranteed bank cannot be secured." 

Mr. Taft's Response. 

No feature of the Democratic platform met a more vigorous 
and scathing denunciation at the hands of Mr. Taft in his speech 
of acceptance than did this proposition, which he declared, if 
adopted exactly as the platform suggests, would "bring the whole 
banking system of the country down in ruin." His discussion of 
the proposition on that occasion was as follows : 

"The Democratic platform recommends a tax upon national banks and 
upon such State banks as may come in, in the nature of enforced insurance, 
to raise a guaranty fund to pay the depositors of any bank which fails. 
How State banks can be included in such a scheme under the Constitution is 
left in the twilight zone of State's rights and federalism so frequently dim- 
ming the meaning and purpose of the promises of the platform. If they 
come in under such a system, they must necessarily be brought within the 
closest national control, and so they must really cease to be State banks and 
become national banks. The proposition is to tax the honest and prudent 
banker to make up for the dishonesty and imprudence oif others. No one 
can foresee the burden which under this system would be (imposed upon the 
sound and conservative bankers of the country by this obligation to make 
good the losses caused by the reckless, speculative and dishonest men who 
would be enabled to secure deposits under such a system on the faith of the 
proposed insurance; as in its present shape the proposal would remove all 
safeguards against recklessness in banking, and the chief, and in the end prob- 
ably the only, bensfit would accrue to the speculator, who would be delighted 
to enter the banking business when it was certain that he could enjoy any 
profit that would accriue, while the risk would have to be assumed by his 
honest and hard-working fellow. In short, the proposal is wholly impracti- 
cable unless it is to be accompanied by a complete revolution in our banking 
system, with a supervision so close as practically to create a government 
bank. If the proposal were adopted exactly as the Democratic platform sug- 
gests it would bring the whole banking system of the country down in ruin, 
and .this proposal is itself an excellent illustration of the fitness for national 
control of a party which will commit itself to « scheme of this nature without 
Jthe slightest sense of responsibility for the practical operation of the law 
proposed. The Democratiic party announces its adhesion to this plan, and 
only recommends the tried system of postal savings banks as an alternative 
if the new experimental panacea is not available." 

How the Plan Wonld Work Ont in Practice. 

The proposition to tax banks to secure deposits is a financial 
chimera like that talked in 1896. when it was solemnly held by a 
great party that the price of wheat was governed by the volume 
of currency, and also that the price of silver governed the price 
of grain, fallacies which even the dozen years since that time 
have so ruthlessly exposed that the Democratic platforms of 
1904 and 1908 have been silent on the subject. 

What is the usual inducement to establish a bank? It is the 
need of banking facilities in the community, and the belief that, 
if properly conducted, it will be profitable to its proprietors and 
beneficial to the community. The bank, to pay, must add to its 
profits by loaning its deposits, as well as the money originally 
invested by its shareholders. 

Interest Deposits are one Form of Investment. 

The inducements for making deposits are various. Some de- 
posit simply for the safe-keeping of their money to be used for 
domestic purposes or for limited business. These depositors are 

23 3(17 



308 GUARANTEE OF BANK DEPOSITS. 

of but little advantage to the bank and expect but little. Their 
deposit is called an inactive account. Others make deposits with 
an agreement that they shall receive a specified rate of interest 
thereon — either time deposits at 3% or 4%, or on daily balances 
2%. 

The depositor who by making these deposits loans his money 
to the bank on time in fact invests his funds in the bank at, say, 
3% per annum. He deems this better than other investments, 
because he is not subject to fluctuation in prices as he would be 
did he purchase securities in the market. He has prospect of 
quite as good a return, and is reasonably sure of having his 
money back without loss at maturity. To guarantee this class of 
depositors, as proposed by the Democratic platform, the bank 
would be obliged to tax itself, uot only to pay an interest on his 
deposits, but to insure his investment, which is a dual capacity 
and responsibility that no wise business man would deem either 
conservative or safe. 

The persons or firms who make the largest deposits are those 
who deposit for business purposes. They naturally expect recip- 
rocal benefit in the way of loans on their notes or on security 
acceptable to the bank. It may be, and it usually is, that such 
a depositor has his credit greatly increased by the addition to 
his bank account of the proceeds of these discounted notes. His 
balance is not represented so much by monetary deposits as by 
this credit which the bank has extended him. Why, then, should 
the shareholders of a bank be compelled to tax themselves to 
guarantee a credit deposit that they have extended to the cus- 
tomer of the bank. A man investing his funds in a corporation 
does not expect that the purchase price paid for its securities 
will be guaranteed to him by the corporation. He takes the 
chances of loss or gain. Why should there be a difference in 
the business principle that governs a bank and that governing 
any other business corporation? This would be class legislation 
of a demoralizing type. The "proposition to guarantee deposits is 
confined to commercial banks or banks of discount and deposit. 
Savings banks are not included therein. Why should this ex- 
ception be made? 

Why not Guarantee Other Forms of Saving's Investment? 

It is important to have in mind that the larger portion of the 
people keep no commercial bank account. Their savings, which 
they depend on in cases of misfortune or death, are invested in 
life insurance companies, annuities, mutual benefit associations, 
savings banks, etc. If the public welfare is to be considered 
fairly, why should not the Government guarantee investments in 
these enterprises, as well as investments in banks made mainly 
for selfish purposes, accommodation or gain? Why should a 
bank that perforins the function of distributing credits and cur- 
rency assets of a country be any more safely guarded than en- 
terprises patronized by the poorer class of people? 

Among the various kinds of business, the greatest earning 
power of the people comes from agriculture, railroad and steam- 
boat transportation, manufacturing and mining. These enter- 
prises are owned by a great number of people as shareholders, 
and large numbers of persons are given employment by them. If 
protection is to be given to the banking interests and insurance 
against loss to preserve confidence, why should not some share. of 
protection be afforded to agricultural interests that banking ac- 
commodations be had whereby in times of panic they need not be 
obliged to sell their products at ruinous prices? Why should 
not shareholders in railroad and steamboat transportation com- 
panies, involving the investment of billions of dollars, be safe- 
guarded by protective legislation? Why should the manufactu- 
rer be obliged to shut down his business and throw thousands 
of people out of employment? This affects (in a calamitous way) 
more homes than would be affected by loss on deposits. 

Mr. Bryan claims that his aim is to protect the masses. His 
argument for the guarantee of bank deposits would affect a class 
— and, as a rule, the richer class, for not many laborers have 
even the spare money to keep an active bank account. 




GUARANTEE OF BANK DEPOSITS. 309 



Bank Notes vs. Bank: Deposits. 

The argument is frequently made that the man who holds 
national bank notes is secured by a guarantee of the Government, 
because it requires that bonds be deposited with the Treasury 
Department before the bank notes may be issued. Why. it is 
asked, should there be favoritism? It must be remembered, 
however, that the relation of the depositor to his bank is far more 
intimate than of the billholder to the bank issuing- the bills 
which he receives, since the billholders are scattered widely over 
the continent, perhaps over the commercial world. The bill- 
holders are obliged to receive bank notes issued by banks dis- 
tant from their places of residence, and of which they can 
know nothing, since this class of currency constitutes a great 
part of the money, whereby they can carry on business trans- 
actions ; and the acceptance of that medium is in a way compul- 
sory. They have but little means of knowing the resources of a 
bank, the manner in which its business is managed, while the 
depositor is in close touch. It by no means follows that be- 
cause of this system in behalf of the bank note holder the Gov- 
ernment should also guarantee the depositor. The relations of the 
two classes of men are vastly different. The officials of the banks 
and the depositors come together in mutual interest, but it i 3 a 
different interest from that of the bill-holder, which is only 
transitory and sometimes a momentary interest. It was the 
great scheme of Secretary Chase to protect the bill-holders who 
were unfavorably placed to protect themselves. 

The Experiment has been Tried and the Resnlt was 
Disastrous. 

We are not entirely without experience in the matter of 
guaranteeing bank deposits. The experiment was tried in the 
State of New York in 1829, during Governor Van Buren's ad- 
ministration, under the act known as the Safety Fund Sj'stem. 

This law grew out of remarkable conditions in the banking 
experience of the State. Governor Van Buren, in his message 
of that year, called attention to the fact that the charter of 31 
of the 40 incorporated banks, among them eight large New York 
city banks, would expire within four years. 

There had been a great monopoly in banking and the control 
of it had been maintained largely through influence exerted in 
political affairs. The banks were; opposed to any new legal re- 
strictions on their former freedom to issue unlimited quantities 
of bank notes or increase their reserve of specie. The public 
insisted on the legal control of bank note issues, by requiring all 
note issues to be registered at the Comptroller's office, and that a 
stricter regulation and a Larger, reserve of specie be maintained. 
Public excitement ran 'he banks took an open hand in 

electing assemblymen favorable to their interests, and also 
joined forces with rs of internal improvements to secure 

from their friends sufficient votes to insure the renewal of their 
charters without burdensome conditions. It is sail that on the 
part of the banks, a reciprocal return was to be made by assist- 
ing the promoters of internal improvements, in financing some of 
their enterprises, provided thf. vote was successful. 

The new co: required a two-thirds vote in the 

legislature to secure incorporation of new banks or renewal of 

charters of the existing When a vote was taken on the 

question, the eonibi nation, to their great amazement, 

defeated >te«. This defeat paved the 

for a new 

Governor " v . had outlined in his message his plan. 

know 3 ty Fund Law. It was ed to him and 

worked on in, of Syracuse, X. Y. Its 

provisions retire protection to the bill- 

holders and check the .tanking speculation in 

wildcat enterprises, a tax of 

y 2 to w.\] annually od the capital stock paid in until 

of the >'!e<-ted. This sum was be be de- 

ier and invested and laid aside to 
;ct the bill-hol ailed or liquidating banks. 



310 GUARANTEE OF BANK DEPOSITS. 

One of the great defects in the system was that the fund was 
not to be used until the assets of the failed bank had been ex- 
hausted and the deficiency determined by winding- up the bank's 
affairs. .This defect in the law was made apparent to the legis- 
lature on the failure of five banks, three of which were in the 
city of Buffalo, and in order to prevent depreciation and loss to 
the bill-holder, an amendment was made to the law, in 1837, 
authorizing the Comptroller to pay immediately the notes of 
the failed bank whenever the liabilities of the bank did not ex- 
ceed two-thirds of the amount of the safety fund. 

There were no more failures until 1840 to 1842, at which time 
there were 90 banks in operation under the safety system and J 2 
outside. The failure in this period of 11 banks greatly reduced 
the money in the safety fund. A test case was made in 1840, by 
the Wayne County Bank, of Palmyra, N. Y. The court construed 
this law to mean liability to the depositor as well as to the. bill- 
holder. This feature of the law was not generally understood 
by the public or the banks, and came as a great shock. As soon 
as the decision became known that depositors, as well as bill- 
holders, were protected by the safety fund, a reckless spirit of 
investing in bank stocks seemed to prevail. A fictitious ered't 
was thereby given to the banks, which was used by inexperi- 
enced, rash and dishonest men most injudiciously in contracting 
debts in wild speculative adventures. Through this bad man- 
agement the safety fund, which at one time had accumulated to 
nearly two million dollars, became insolvent. 

The decision to combine protection to the bill-holder and de- 
positors was so vast and tremendous in its responsibilities that 
the public demanded the repeal of the law, in 1842, by confining 
the responsibility ot the fund to bank notes alone. 

Hon. Millard Fillmore, then State Comptroller, said : 4 

"It is apparent that the safety fund system would have proved an ample 
indemnity to the bill-holder had it not been applied to the payment of other 
debts (depositors) than those due for circulation." 

Since that time there has been no attempt on the part of ad- 
vocates of the guaranty of bank deposits in New York to secure 
any enactment to provide for the insurance of bank deposits, 
and it was not until the passage of such a law recently in Okla- 
homa that this subject was again brought prominently before the 
public. 

The free banking act of New York, passed in 1838, provided 
for the security of the bill-holder by the registration of all bank 
issues and a security of stock and bonds deposited with the 
Comptroller. On these bank notes*, the fact that the holders 
were secured was printed on the face of the notes. 



Safety of Present System. 

It should be borne in mind that under the present National 
Hanking System, during the past 42 years, the loss to depositors 
has not exceeded l/26th of one per cent per annum. 

In many of the bills introduced in the recent Congress pro- 
viding for the guarantee of bank deposits, the argument was 
made that if deposits should be guaranteed, future panics would 
be prevented ; and that was of such serious importance as to 
justify extraordinary legislation. It Was claimed that the Gov- 
ernment had the same right and power to compel national banks 
to submit to a tax to guarantee deposits as the Government had 
to tax banks for the circulation of its bank notes. They failed 
to observe that there is no principle in law that will justify the 
taxing of one person (the shareholder) for another (the depos- 
itor). 



No Such Plan Known to the Business World. 

Attention is being called just now to the financial systems of 
the whole world, but no case has been shown where the depositors 
in banks, outside of the usual liability of the stockholders, are 
guaranteed against the loss of their deposits. If we are trying 
to follow tne successful experience of the world in finance, why 
not heed this object lesson? 




iJLARANTEE OF BANK DEPOSITS. 311 

Laurence Laughlin, of the University of Chicago, in Scribner's, 
July, 1908.] 

The existence of complicated monetary and banking prob- 
lems, understood by only a few, furnishes the opportunity for 
professional politicians to bring- forward measures which may 
appeal to the private interests of one class against another, but 
which show utter want of analysis and ignorance of fundamental 
principles. * * * 

Of such a character was the "rag baby" of Greenback days, 
or the free coinage of silver of more recent memory ; and the 
last member to be added to this motly collection is the guaranty 
of bank deposits. Its appearance at this moment, soon after a 
financial crisis, follows the usual sequence of freak schemes in 
the wake of a business disturbance.* * Superficial thinking as 
to panics, and little understanding of the actual operation ol 
banks, have provided a soil in which the proposal for a guaranty 
of bank deposits may take quick root. * * * 

The purpose of the scheme is to distribute the losses to 
depositors arising from bank failures among a large number 
of banks, instead of allowing them to fall on the innocent de- 
positors who are not responsible for them. To this end it is 
proposed to levy a tax on the bankers to create a fund which, 
in charge of the National Treasury, shall be used to pay off at 
once the claims of depositors in insolvent banks. Some advocate 
the guaranty of the Government, others lay the whole burden 
on the banks, aided, j>erhaps, by an initial grant from the Gov- 
ernment. * * 

In proposing to guarantee depositors in general, there is 
an obvious lack of discrimination in failing to distinguish be- 
tween deposits in savings banks, whose assets must necessarily 
be of an investment character, and depositors engaged in active 
business, who keep checking accounts at commercial banks, 
which must always keep assets in cash sufficient to meet normal 
demand requirements. ****** The protection for de- 
positors in savings "banks (or small private banks) is a wholly 
different problem from one dealing with commercial banks. It 
is for this first class that Government postal banks are suggested 
as offering absolute safety. * * 

The real question, therefore, has to do with commercial 
banks, such as our national banks, and some of those created 
by the States ; for the trust companies and State banks, while 
carrying on savings departments, actively strive for the busi- 
ness of commercial banks, and cannot by any means be ignored. 
. # * * * Because the national banks issue notes, the in- 
surance of these notes by a guaranty fund, providing for*their 
immediate redemption, has been generally admitted as desirable 
and feasible; although their ultimate redemption is secured by 
a first lien on assets by the deposit of bonds. If, then, the 
insurance of the note-holder is regarded as necessary, why not 
extend the same idea to the depositors? There is, however, a 
wide difference in the position of a note-holder and the depositor. 
When a demand liability of a bank, in the form of a note, comes 
to be used as money, and is passed from hand to hand by buyers 
and sellers who have no knowledge whatever of the standing of 
the issuing bank, it must have universal acceptabilitv. * * 
* * * it i s quite otherwise with the deposit. While the note 
performs a general and social function, the deposit arises solely 
from a personal and voluntary act. ***** The de- 
positor selects his own bank and takes the risfts implied in a 
voluntary choice, thus becoming responsible for his act, just as 
any one does when he gives credit to a buyer or lets a house. 
Consequently, the reasons for a guaranty of the notes are 
obvious; while they would have no application tto the guaranty 
of deposits. * * * 

A depositor is, of course, a creditor of a bank: that ts, the 
relation of a depositor to a bank is only one of many other 
relations existing between creditor and debtor. Is there! any- 
thing peculiar in the case of the depositor which sets him apart 
from all other creditors who have voluntarily entered into a 
creditor relation, and which entitles him alone to protection 
against the consequeuces of his own acts? If one sort of creditor 



\ 



3f3 GUARANTEE OF BANE DEPOSITS. 

should be insured against the usual mischances of business, why 
should we not insure all? Why discriminate in favor of him 
who is rich enough to have a bank deposit? A humble washer- 
woman who often Iris outstanding debts which she cannot collect 
ought to be insured against loss as well as a depositor; she has 
little means of knowing except by bitter experience, whom 
to trust. And the same might be said of the cobbler, the 
milkman, the grocer, the doctor, the merchant, or the large 
wholesale seller of drygoods, or of any other article; for which 
they have accounts against others for which they need the collec- 
tion as well as the depositor in a bank — perhaps more. Why 
this 1 sudden excess of interest in the creditors, when in the silver 
agitation every true patriot's heart was burning with zeal to 
help out the poor debtor? Has the politician exhausted the 
possibilities of sympathy in the debtor and wishes to try new 
pastures? Obviously, the proposal to insure depositors as an 
application of a general principle of insuring all creditors is 
childish, and has been horn in the mind of a man who does 
not think of things beyond his own nose. ***** 

The honest and efficient banks cannot in justice be asked to 
make up to a depositor in a failed bank losses for which the 
honest and efficient banks had no responsibility whatever. It 
would be clearly unfair to hold a small conservatively managed 
country bank responsible for the "frenzied finance" of some 
large bank in a great city. All reason, all justice, demand that 
the punishment be inflicted on the doer of the wrong and not 
on the innocent neighbor. In fact, the ethical justification for 
taxing sound banks to cover the lapses of unsound banks has 
no existence whatever. It is unmoral. Moreover, it is a ques- 
tion whether the courts would enforce such a law against the 
rights of property. 

More than that, it is not supported by any theory of political 
expediency but the socialistic. The advocates of insurance de- 
plore the suggestion that it is socialistic, and are as much 
horrified by the mention of socialism as the, devil is by the sight 
of the cross; and yet what does the analysis show? It is not 
necessary to explain to intelligent readers that socialism is not 
opposed to individualism ; socialists look to the State to do for 
them what they admit they cannot do for themselves under a 
system of free competition. ****** 

The plan for insurance of deposits is urged by its advocates 
as one which will induce more careful banking, because con- 
tributors to the fund will be more vigilant in acting as police- 
men over other bankers, and stop illegitimate methods in their 
inception. On the other hand, its opponents claim that it will 
reduce the best-managed to the level of the worst-managed 
banks, and remove all premium on skill, honesty and ability. 
* * * 

To relieve the banker from the logical consequences of his 
. own mistakes, of his own weaknesses, is to take away practically 
the only real safeguard effective on human nature in a business 
touching the trusts of countless financial interests. The result 
of such a guaranty would, in my opinion, tend to put a premium 
on the "popular" and "obliging" banker, as against the careful 
and judicious banker ; to spread throughout the country the 
influence of men who care more for bigness than safety in 
their accounts ; to build up credit unsupported by legitimate 
trade ; and in the end would bring on financial convulsions pro- 
portional in disaster to the extent of the doubtful banking. 
Not only would it be unjust to ask the efficient to meet the 
losses of the inefficient, but it is poor policy to stimulate the 
inefficient to try to do that for which they are unfit. * * * 
****** * 

Finally, the appeal to history gives the plan no authority. 
We have had experience with a guaranty of deposits in New 
York under the Safety Fund Act, April 2, 1829. The conditions 
of the country and the understanding of banking were such at 
that time that the lessons from that experiment cannot have 
\c.vy much value. Then, there was held only one reserve for 
both notes and deposits. Expansion of loans in those days 
meant, in the main, an expansion of notes. The safety fund 
was, therefore, a protection to both notes and deposits; but as 



1 



GUARANTEE OF BANK DEPOSITS. 313 

business was then largely done by notes, its service was much 
as would be rendered to-day by a guaranty of deposits. What, 
then, was the outcome? The fund was established by levying 
a tax of one-half of one per cent on the capital stock until a 
fund of 3 per cent was reached. After eight years the fund 
was tested by the crisis of 1837,. when there were 90 banks in 
operation with a capital of $32,200,000. All the banks suspended 
and the act itself was suspended for a year. Again, in 1840- 
1842, the system was put to test by eleven serious bank failures. 
Thereupon, in 1842, it was decreed that the fund should hereafter 
be used only for the redemption of the notes of failed banks.* 
The experience of Vermont and Michigan is still less satisfactory. 

[Hon. George E. Roberts, former Director of the Mint, before the Montana 
Bankers' Association Convention.] 

The first objection to the guaranty of deposits is that it 
ignores the fundamental defect of our currency sj'stem, its 
rigidity. There is an actual need for more money to handle 
the business of the country in the fall of the year than in the 
other seasons, and the guaranty plan does not meet that demand. 
The advocates of the guaranty plan recognize no evil in the 
present situation, but the evil of the panic, when the fact is 
that the panic is simply the last stage of the disorder. A panic 
marks the stage where the sj'stem finally collapses, but there 
is a costly strain which precedes the collapse and which does 
not always come to collapse. A panic comes only once in ten or 
fifteen years, or twenty years, but the strain and cost of our 
inflexible currency system, the curtailment of credits, the en- 
hanced interest charges, the inadequate facilities for handling 
the business of the country, the burden upon the producers of 
the country, these come every year, and the guarantee of de- 
posits offers no remedy. Instead of seeking to strengthen the 
banking systems and provide the means by which the banks 
may meet all the calls upon them, whether those of panic or 
of legitimate business, this policy proposes that we continue to 
endure the annual evils of the most inadequate currency system 
in the world, and confine ourselves to an attempt to persuade 
depositors not to call for their money. Give the bankers of the 
United States an institution behind them like the Bank of France 
or the Bank of Germany, and they will meet all demands upon 
them whether prompted by panic or otherwise. 

The second objection to the guaranty of deposits is that it 
eliminates character as a necessary factor in the banking busi- 
ness. Under present conditions the investments, the personal 
habits, general character, and abilities of the banker are a 
matter of public interest and constantly under the scrutiny 
of the community. After all allowance is made for occasional 
instances in which the public has been deceived, who can doubt 
that this alert and interested public* opinion has a great in- 
fluence in maintaining proper standards of banking practice? 
We cannot afford to do without that influence. 

The conservative banker has some reward to-day in the 
preference which a discriminating public gives him. It is some 
protection against demoralizing competition. He can follow his 
own policy and be assured that at least a share of the public 
will appreciate his methods and support him. There are people 
who are not influenced in the selection of their bank by the 
highest rate of interest offered on deposits. A banker now 
prizes the reputation of doing a safe business, and cannot afford 
to have a reputation for imprudence or speculative tendencies. 
And yet, although held in check by these powerful considera- 
tions, the pressure of competition carries the business too near 
the danger line now. There is too much competition for do- 
posits now, and the ambition of the more venturesome, and the 
pace they set, puts the whole system under strain. 

But what are likely to be the conditions in the business when 
the public is no longer concerned about the management of a 
bank and all the rewards for conservatism and restraints upon 
issness an- removed? Practically all the considerations 
which in the past have tended bo safeguard the business and 
advance lis standards would be gone. The public would care 



314 GUARANTEE OF BANK DEPOSITS. 

nothing for the personality of the banker. The question relating 
to his fitness for the custody of money would become obsolete. 
The reckless and incompetent people who are now excluded from 
the banking business or held in check by the distrust which the 
public feels toward them, would make the pace to which every- 
body else would have to conform or get out of the business. 

The hardest competitor in any line of business is the inex- 
perienced or incompetent man who doesn't know whether he is 
making or losing money and whose only idea of building up his 
business is to offer a little greater inducements than his rival 
will give. In the banking business with deposits made a joint 
liability, it is difficult to see why they should not all go to the 
people who will bid the highest for them, a condition that would 
be unjust and intolerable to the class of men best qualified to 
handle the banking business of the country. 

The argument for the guaranty of deposits is based on the 
ground of public policy. It is admitted that it may be injurious 
to the baa&feer of experience and established character, but urged 
that their interests should be subordinated to the general good. 
But on broad grounds of public policy is it desirable to eliminate 
experience and established character as factors in the banking 
business? It cannot be advantageous to the community in the 
long run to have its accumulated savings and working capital 
pass into the hands of the venturesome class who will bid most 
for them. Such a system will break down eventually through 
its inherent weakness as a similar one did break down in the 
State of New York years ago. The fact that the first bank 
failure in Oklahoma since the law went into effect was followed 
by immediate reimbursement of the depositors at the expense 
of the other bankers of the State, proves nothing as to the 
practicability of the system in the long run. What will the 
influence of the system be upon the banking business and its 
standards? Will it tend to secure more careful and caj)ablc 
investment of the vast sums which the people of this country 
keep in banks, or will it tend to weaken the personal responsi- 
bility for these funds and divert them into incapable and waste- 
ful hands? Instead of looking j;or security to the individual 
banker who received the deposit and invests it, the depositor 
will pay no attention to him, but rely upon an outside "fund." 
It is a superficial policy which neglects real safeguards and 
relies upon a false principle which is itself an element of peril. 

[From address of Mr. Jno. B. Marony, President Montana Bankers' Associa- 
tion Convention.] 

Among other remedies for the prevention of financial strin- 
gency and panic that has been widely proposed is the guarantee- 
ing by the Federal Government of deposits in national banks, and 
the guaranteeng by the several States of deposits in State banks. 
Such a thing, in my opinion, is utterly impracticable and a dan- 
gerous experiment. Personally, I am opposed to paternalism in 
any government, and. in my judgment, this is paternalism in the 
extreme. 

So much has been written pro and con upon this subject that 
it would be presumptuous on my part to iufiict upon you my 
views thereon at any length, but if the Government is to 
guarantee deposits in banks, why not go into the insurance busi- 
ness in all of its aspects and ramifications? Why not guarantee 
that the grocer sells his sugar without sand, or that your house 
will not burn down, or that your crops will always prove bounti- 
ful? 

If this guarantee and insurance business is to be carried oul 
of its legitimate or illegitimate ends, following the guarantee of 
bank deposits, why not supplant Lloyds and take a bet on any- 
thing from a storm at sea to the clip of wool on a sheep's back. 
Will the Government or State say by such a law that one bank is 
as good as another, and that, as a result of the guarantee of de- 
posits? Will they say that the plunger and reckless banker can 
establish a bank on one corner of the street, paying whatever 
interest on deposit he will, or in any manner he -chooses 'stimu- 
late aTid increase his deposits to the end that he may build up a 
big deposit account, and then loan money regardless, and that 



• GUARANTEE OF BANE DEPOSITS. 315 

the safe and conservative banker with his institution of many 
years standing, on the opposite corner, shall pay into the common 
pot of insurance to maintain the credit and make good on de- 
posits drawn into the recklessly managed bank regardless of con- 
sequences. I say to you that such a law would run counter to 
ihe current of human nature. No law can successfully do that. 
No legislation can turn that current. Men are human, and bank 
managers are cast along different lines, with different views and 
different ideas of running their institutions. 

The State of Oklahoma guarantees deposits in State institu- 
tions. I read an advertisement the other day that an Oklahoma 
bank with $10,000 capital was advertising to pay four per cent on 
its deposits, and citing the State's guarantee for the security of 
these deposits. Why not this bank with its $10,000 capital and 
its extraordinary inducement for deposits build up its deposit 
account to a million dollars or ten million dollars, and doing 
that, to live, must loan its money? Will any man argue that 
those loans will be safe or conservative? A notable article on 
this subject was recently written by Prof. J. Laurence Laughlin. 
a noted political economist of the University of Chicago. He 
maintains that "the ethical justification for taxing sound banks 
to cover the lapses of unsound banks has no existence what- 
ever." It is immoral and illogical. "The deposits of a bank are 
as safe as the value of the assets in its loan item, no more, no 
less." It is idle, in my judgment, to discuss this matter to a 
convention of intelligent bankers, for I am sure that they are 
almost unanimously of the same opinion, and that "is one of ab- 
solute opposition to any such theories. 

[From address of Mr. H. V. Alward before the Montana Bankers' Associa- 
tion Convention.] 

Two important plans affecting our financial system have been 
much discussed this year. One, the guaranteeing of bank de- 
posits, will, I believe, be the subject of the address of this con- 
vention. In this connection, I only wish to quote a sentence from 
a recent able address, which you probably have all read, but 
which contains so much wisdom that it can not be too often re- 
peated. It is as follows — ^peaking of deposit guarantee : "The 
unsound banks would actually take business away from the 
sound ones with specious promises, to which conservatively man- 
aged banks would not resort, and on reckless terms with which 
they would not compete ; while to the extent of their contribu- 
tions to the guaranty fund, the sound institutions would support 
the unsound in their recklessness, besides giving- them a standing 
and credit -which they could not otherwise obtain." 

[From annual address of Pres. Kaufman, of Michigan Bankers' Association.] 

Government insurance of deposits is a cordial invitation to 
those who wish to carry on dishonest banking to enter the busi- 
ness, and compels the honest and the skillful banker to bear the 
burden for the slovenly financier and the thief. If one of the 
latter class goes to the wall, under the insurance plan the bank 
that has spent years in careful and honest administration and 
built up a reputation, must devote part of its earnings to make 
good the losses of the get-rich-quick fiend after he has deliber- 
ately allowed his institution to collapse. The argument is used 
I v friends of the insurance plan that the criminal law reaches 
Hi is style of banker, and that, therefore, failures would be few 
and far between. 

The criminal law will reach them if they do business under 
the general banking law of the State or under the national bank- 
ing law, demonstrating there is no real necessity for insurance 
to project depositors in well managed institutions, and the other 
kind should not exist. 

Government insurance of deposits would mean a tax upon the 
people patronizing banks in order to protect the man who should 
have sense enough to protect himself. In other words, it would 
place, a premium on incompetency of the depositor as well as the 
banker. This species of paternalism is, in my estimation, for 
eign to the spiril of our democracy, which protects every nuin 
in his rights, and leaves him to mauage his own business as he 



■ 



816 GUARANTEE OF BANK DEPOSITS? 

deems best. If the Government is to guarantee bank 

why not guarantee all kinds of credits and tax the retai 

lines, so that the wholesalers who sell oji sixty and ninety days' 

time can be sure of getting their money. One: is just as I 

as the other. 

Under a Government guarantee, or any other guarantee of" 
deposits, years of effort, initiative, character, judgm ound 

integrity, methods of building up and maintaining a banking 
institution count for nothing in attracting- depositors. The bank 
of sound creation and the mushroom institutions of yesterday 
are on the same level in the eyes of tJie depositor. 

The Oklahoma Guarantee Plan and the National Banks- 
Decision of the Attorney General and Comptroller of the 

Currency. 

The recent decisions of the Attorney General and Comptroller 
of the Currency as to the right of national banks to participate 
in the Oklahoma guarantee fund plan, are outlined in the 
following extracts therefrom : Certain of the national 
banks of Oklahoma had requested permission from the Comp- 
troller of the Currency to participate in the Oklahoma 
guarantee system, but he declined to grant the permission, re- 
questing an opinion from the Attorney General, who held that a 
national bank has no right to enter into a contract or other ar- 
rangement with State officials for the purpose of creating a 
guarantee fund out of the bank's deposits or capital stock to be 
used in pa} r ing the depositors of any bank included within the 
terms of a State statute any deficiency there may be in the 
amount to be received by them from assets of such bank in the 
event of its failure. The decision in x^art says : 

The statute of Oklahoma to which you call my attention cre- 
ates a State Banking Board, composed of certain designated 
State officers, and requires the said board to "levy against the 
capital stock an assessment of 1 per cent of the bank's daily 
average deposits," with certain deduction "upon each and every 
bank organized and existing under the laws of this State." This 
assessment is to constitute what is designated as a "depositor's 
guarantee fund," and additional assessments are to be levied 
against the capital stock of the banks, proportionately to the 
amount of their deposits, so as to always maintain the fund at the 
designated amount. 

It is generally recognized that a national bank has no power 
to guarantee the * obligations of a third party unless in connec- 
tion with a sale or transfer of its own property, and as an inci- 
dent to the banking business. 

It has been argued that the bank in this case would not guar- 
antee the obligations of other banks, but would only agree to put 
the State of Oklahoma, through its Banking Board, in funds to 
make effectual such a guarantee on its part. I think this is a 
distinction without a difference. 

I have not overlooked the fact that by the terms of the pro- 
posed contract between the bank in question and the State or its 
Banking Board the said bank agrees to do nothing which shall 
be in conflict with the Federal laws, but this provision is not 
relevant, for the entire contract is ultra vires for a national 
bank, and prohibited by the necessary intendment of the statute. 
I hold that such is the fact with respect to the contract proposed, 
in this case — that it is illegal for the officers of any national 
bank to enter into such an agreement as is contemplated by sec- 
tion 4 of the Oklahoma statute, and that persistent and willful 
action to this effect on the part of any such bank would be just- 
cause for the forfeiture of its charter. 

The opinion of Attorney General Bonaparte sustains the po- 
sition taken by Comptroller Bidgely, and later by his successor, 
Comptroller Murray. 

Pew National Banks Favoring the Oklahoma Plan. 

Washington, Aug. 26. — T. P. Kane, acting Comptroller of the 
Currency, makes the following statement: 

"A statement is going the rotinds of the press to' the effect that a large 
numtar of th* national banks in Oklahoma have notified the Comptroller of 



GUARANTEE OF BANK DEPOSITS. 317 

the Currency of their intention to surrender their national charters and enter 
the State banking system, because of the opinion rendered by the attorney- 
general that they cannot lawfully avail themse'lves of the State guaranty law. 
This statement is not in accord with the facts. There are about 310 national 
banks in the State of Oklahoma. Only 57 entered into the guaranty scheme. 
On August 8, 1903, these 57 banks were notified that they must withdraw 
from the agreement, and so far replies have be^n received from 33 of them. 
Twenty-seven have informed the Comptroller that they have notified the State 
Banking Board of their desire to withdraw from the guaranty agreement. 
Seven have indicated their intention to surrender their Rational charters and 
reorganize as State banks, but two only have thus fat actually gone into 
voluntary liquidation for that purpose. Replies have been received from 134 
of the 253 banks that have not entered into the agreement. A majority of 
them state they had' no intention &£ doing so, as they were not in sympathy 
with the movement. One national bank, recently chartered, states that fts 
purpose dn converting from a State bank to the national system was to 
escape the requirements of the guaranty law." 



The organisation of capital into corporations with, the 
position of advantage which this gives it in a dispute with 
single laborers over wages, makes it absolutely necessary 
for labor to unite and maintain itself. — Hon. Wm. H. Taft, 
at Cooper Union, New York City. 

If I am elected President, I shall urge upon Congress, with 
every hope of success, that a law be passed requiring a 
filing in a Federal ofliee of a statement of "the contributions 
received by committees and candidates in elections for mem- 
bers of Congress and in such o^her elections, as are consti- 
tutionally within the control of Congress.— -From Hon. Wm. 
H. Taft's speech accepting Presidential nomination. 

There is a class of capitalists who look upon labor unions 
as per se vicious and a class of radical labor unionists 
who look upon capital as labor's natural enemy. I believe, 
however, that the great majority of each class are grad- 
ually becoming more conciliatory in their attitude, the one 
toward the other. Between them is a larger class, neither 
capital nor labor unionist, who are without prejudices, and 
I hope I am one of those. — Hon. Wm. H. Taft, at Cooper 
Union, New York; City. 

We are winning headship among the nations of the world 
because our people are able to keep their high average of 
individual citizenship and to show their mastery in the hard, 
complex, pushing life of the age. There will be fluctuations 
from time to time in our prosperity, but it will continue to 
grow just so long as we keep up this high average of indi- 
vidual citizenship and permit it to work out its own sal- 
vation under proper economic legislation. — President Roose- 
velt at Minneapolis, April 4, 1903. 

The American people are studying these questions as 
never before. They prize their independence. They insist, 
and will forever insist, upon that liberty which is among 
the most precious of their possessions; but they realize 
more and more as the years go by that when liberty becomes 
license, when great power is misused, and great privileges 
are abused, they as individuals suffer, and the citizenship 
in which they glory is weakened and discredited. — Address 
of Secretary Cortelyou at the annual banquet of the Syracuse 
Chamber of Commerce, Syracuse, N. Y., Tuesday evening. 
April 21, 1908. 

I have reviewed what have properly come to be known 
as President Roosevelt's policies. I have attempted to point 
out one or two instances in which I would qualify details 
of future policies which he has sketched, but with these 
minor exceptions as to method, I am gjad to express my 
complete, thorough, and sincere sympathy with, and ad- 
miration for, the great conserving and conservative move- 
ment with which he has with wonderful success initiated 
and carried so far against bitter opposition, to remedy the 
evils of our prosperity and preserve to us the institutions 
we have inherited from our fathers.— Hon. Wm. H. Taft, at 
Columbus, Ohio. 

Labor needs capital to secure the best production, while 
capital needs labor in producing anything'. The share of 
each laborer in the joint product is affected not exactly, 
but in a general way, by the amount of capital in use as 
compared with the number of those who labor. The more 
capital iu use the more work there is to do, and tbe more 
work there is to do the more laborers arc needed. The 
greater the need for laborers the better their pay per man. 
Manifestly, it is in the direct interest of the laborer that 
capital shall increase faster than the number of those who 
work. Everything which legitimately tends to increase the 
accumulation of wealth and i<s use for production will give 
each laborer a larger share in the joint result of capital 
and labor.— Hon. Wni. H. Taft, at Cooper Union, New York 
City. 



PRESIDENT ROOSEVELT. 



Theodore Roosevelt : born in New York, October 27, 1858 ; 
elected to the New York legislature in 1881; delegate-at-large 
to the Republican National Convention in 1884 ; United States 
Civil Service Commissioner 1889-95 ; President of New York 
Police Board 1895-7 ; Assistant Secretary of the Navy 1897-8 ; 
Lieutenant-Colonel and Colonel of Rough Riders' regiment during 
the war with Spain ; Governor of New York 1899-1900 ; was 
elected to the Vice-Presidency in 1900 and succeeded to the 
Presidency on death of President William McKinlev, September 
14, 1901. 

He devoted the remainder of that presidential term to carry- 
ing out the policies of President McKinley, in Cuba, in the 
Philippines, in developing- and strengthening the Monroe doctrine, 
in his dealings with the various aspects of the Venezuelan ques- 
tion, and in his official relations with the various American 
countries; gave prompt recognition to the infant republic of 
Panama, in which he was quickly followed by the principal na- 
tions of the world; inaugurated the Panama canal work; pnt 
in operation the new Department of Commerce and Labor ; ad- 
justed, through arbitration, the anthracite coal troubles when 
the strain between labor and capital was the greatest ever 
known in this country ; and instituted through the Attorney- 
General's office a rigorous enforcement of existing laws against 
discriminations and other unjust dealing by trusts and other 
great corporations of the country. 

In November, 1904,. Mr. Roosevelt was elected to the 
Presidency by the largest popular majority ever given in the 
history of the country. He carried every State north of Vir- 
ginia and the Ohio River, and every State west of the Mississippi 
excepting Arkansas, Louisiana, and Texas. His triumph was 
fully expected, and it was accepted with content, if not with 
marked approval, in the States which had given their majorities 
to Judge Parker. Early on election evening Judge Parker sent 
the President the following telegram : "The people by their votes 
have emphatically approved your administration, and I con- 
gratulate you." At the same moment, — namely, on Tuesday even- 
ing, — as the sweeping nature of the victory came to be known. 
President Roosevelt made a remarkable announcement, which ap- 
peared in the newspapers, Wednesday morning, along with the 
reports of the election : 

I am deeply sensible of the honor done me by the American people 
in thus expressing their confidence in what I have done and have tried 
to do. I appreciate to the full the solemn responsibility this confidence 
imposes upon me, and I shall do all that in my power lies not to forfeit 
it. On the Fourth of March next I shall have served three and one- 
half years, and this three and one-half years constitutes my first term. -The 
wise custom which limits the President to two terms regards the sub- 
stance and not the form. Under no oircumstances will I be a candidate 
for or accept another nomination. 

Mr. Roosevelt was no - ^ under any kind of pressure or obliga- 
tion to make such a statement. He had been re-elected by the 
people of the country, without reliance upon the special aid of ' 
any individuals or interests, and he could have left the future 
to shape itself. But he believed that he could do the work that 
lay before him more effectually if it were known that he was 
not unduly elated by his personal success, and that he meant 
to bring all his efforts- to bear upon the performance of the 
duties of his office without diverting the smallest degree of 
energy toward the winning of support for still another term. 

This statement made a profound effect upon the country. It 
is not (jften that a man of such decision and streugth as Mr. 
Roosevelt can escape a change in the wind of popular favor. Yet, 
if Mr. Roosevelt had not made it clear that he would hold firmly 
to bis announcement of November, 1904, the Republican party 
would have renominated him by accla nation and he would not 
only have carried all the States that gave their majorities for 

318 



PRESIDENT ROOSEVELT. 319 

him in 1904, but he would also probably have carried several 
others. Since Mr. Roosevelt was firm in his decision, in spite 
of much pressure brought to bear upon him, it was highly 
fortunate that his personal judgment concurred with that of 
the great majority of the party in believing that the Hon. William 
H. Taft, Secretary of War, was the man best suited under all 
existing circumstances and conditions to receive the nomination. 
At no point in his brilliant career have the moral strength and 
political integrity of Theodore Roosevelt been clearer to the 
country and to the world than in the part he took in helping 
the party to carry out what was its own best judgment in choos- 
ing Mr. Taft with the hearty acceptance of every Republican 
factor and element. 

Mr. Roosevelt's administration has been so replete with valu- 
able achievements that a mere recapitulation of them wotdd fill 
main" pages. At no time in our history have our relations with 
foreign countries been so friendly, and at no time has our posi- 
tion as an influence for good in the affairs of the world been 
so solid and unquestioned as in this period of Mr. Roosevelt's 
administration. There is' not a European power, great or small, 
with which our government is not upon terms of good under- 
standing. With none of the great powers is there any question 
pending that occasions fricti'on. 

Our relations to our own continent have been vastly improved. 
Outstanding questions between this country and the Dominion of 
Canada are all either cleared up or in the way of settlement 
through friendh- negotiations. Mr. Roosevelt and his dis- 
tinguished Secretary of State, Mr. Root, have almost completely 
changed the attitude of South America toward our government, 
having convinced the leading republics of the South of our friend- 
liness and good will. 

To have been instrumental in calling the second Hague Con- 
ference belongs to the credit of President Roosevelt, and this 
work for the promotion of peace was attended with the. negotia- 
tion of numerous special arbitration treaties with foreign coun- 
tries ; by practical steps which secured neutrality for China in 
the Russo-Japanese War; and, finally, by the masterly states- 
manship which secured an ending of hostilities in the Far East 
and the assembling on American soil of the representatives of 
Russia and Japan to fix upon terms of peace. 

The successive stages in the organization of government and 
of engineering work at Panama have been of lasting credit to 
Mr. Roosevelt and his administration. What was the most un- 
wholesome has now become perhaps the healthiest spot in the 
whole tropical world through enlightened sanitary work. Enor- 
mous progress has been made in digging the Panama Canal, with 
an efficiency on the part of government officers that fully equals 
that recenth' shown by great American railroad and industrial 
corporations in their own improvement. One important step 
in bringing this about was the President's own personal visit 
to Panama in Xovember, 1906. 

Mr. Roosevelt has served in the Presidency during a period 
of inevitable readjustment following the astounding material 
progress of the cotmtry. Different kinds of industries were com- 
ing under the control of great unified corporations, popularly 
known as trusts. Railroads were being reorganized and amal- 
gamated in large systems. It became necessary for the welfare 
of the public to bring these large aggregations of capital under 
the reasonable authority of law and government. No President 
of firm character and statesmanlike understanding could have 
avoided the serious duties and responsibilities which this condi- 
tion in the country had created. Mr. Roosevelt's attitude toward 
questions of this character was that of a firm executive rather 
than of an aggressive innovator. 

It was the judgment of fair-minded and wise men thai the 
practice of rebating and the granting of various forms of 
special favor by railroads to large corporations and shippers could 
no longer be tolerated. The fact that such practices have been 
almost entirely broken up will stand to the credit of President 
Roosevelt's administration. The public and the raifroads alike 
are benefited. "The small industries are now secure in their 
rights as against their large competitors. This process of bring- 



320 PRE XI D EN T UQQ&E V ELT. 

ing even-handed justice to bear upon the economic life of the 

country is not yet complete, but the main lines are laid down 
upon which to proceed. President Roosevelt has again and 
again declared in favor of such modifications of existing laws as 
would make is easier to break up methods that are injurious, 
while placing no obstacles in the way of lawful and beneficial 
enterprise. The creation of the new Department of Commerce 
and Labor with its various activities has proved itself a* measure 
of constructive statesmanship that will also stand to the credit 
of President Eoosevelt's administration. 

No President has ever worked" more intelligently and con- 
stantly at the business of his high office than President Roose- 
velt, and yet he has managed to travel and observe conditions 
in all parts of the country. Within the first year of his second 
term it could be said that since entering upon the duties of the 
Presidency he had visited and spoken in every State and Terri- 
tory of the Union. His trips to different parts of the country 
have been taken in such a way as to add to his already extensive 
knowledge of resources and conditions. No other man among his 
fellow citizens is. so well informed as he about all sorts of 
things in all parts of the country. This broad knowledge has 
been of inestimable value in the carrying on of the work of 
various departments and bureaus. . The great reclamation work 
carried on under government engineers has flourished largely hj 
reason of Mr. Roosevelt's personal knowledge and interest. A 
like statement might be made regarding various reforms in the 
public land service. The work of the forestry bureau under his 
fostering care and wise enthusiasm has grown to such pro- 
portions as to g'ive reassurance for the future, where otherwise 
the outlook for destruction of all our forests was very grave. The 
taking in hand by the government of the improvement 'of the 
country's interior waterways is another policy with which Mr. 
Roosevelt is to be credited as the foremost leader. At no time 
has he stood before the whole country in a more patriotic and 
creditable way than in his conduct .of the great conference of 
Governors and various experts in the spring of 1908 at the 
White House to consider the proper care of the country's natural 
resources. ^ 

In all matters relating to the army and navy President Roose- 
velt is a high authority, and he has placed the country's defenses 
in a position that has enhanced the respect in which our govern- 
ment is held everywhere without arousing any antagonism or 
jealousy among the nations. In the remission of the Chinese 
indemnity, granted by Congress on his recommendation, another 
evidence has been given of our good will towards the great 
Celestial Empire. In the negotiations with Japan regarding 
attacks upon Japanese citizens in our Western States and the 
desirability of limiting Japanese immigration, President Roose- 
velt and Mr. Root have allayed ruffled feeling and made peace a 
permanent fact. The great naval expedition around the world 
as determined upon and executed by Mr. Roosevelt against much 
bitter criticisms has justified his highest expectations and made 
friends everywhere for the government and people of the United 
£ cates. 

Our diplomatic and consular services abroad have been im- 
proved in the most signal way under President Roosevelt, and 
our representatives in official life in Porto Rico, Cuba, the Philip- 
pines, and elsewhere have been so fortunately selected as to reflect 
much credit and no scandal upon the administration at home. 
Never before have the various scientific services of the United 
States Government been so expertly and efficiently carried on. 

Thus", to sum up, Mr. Roosevelt as President has added to our 
strength in improved relations with all European powers ; has 
made the Monroe Doctrine respected everywhere and brought 
about the most fortunate relations with South America ; has 
managed our insular dependencies so well as to have made so- 
called" "imperialism" no longer an issue; has made it popular 
throughout the country to put talent, honesty, and zeal at the 
service of State and nation; has set a fine example of 
vigor and character before all our young men. When Mr. Roose- 
velt's term ends and he retires from office next March it will be 
aa our only living ex-President and as our foremost citizen, with 



AT ROOi 3ii 

undiminislied capacity for public usefulness and a demonstrated 
patriotism beyond the promptings of personal ambition. 

Much of President Iloosevelt's work and that of his ad- 
ministration is outlined in the chapters on the work of the De- 
• partments. 

Some Important Incidents in Administration of President 
Roosevelt. 

Abrogation of the Clayton-Bulwer Treaty. 

Prompt recognition of the Panama Eepubiic. 

Inauguration of work on the Panama Canal. 

Reciprocity treaty with Cuba. 

Mediation in the Venezuelan dispute with Germany and 
England. 

Mediation in San Domingo. 

Mediation in the 'Ensso- Japanese war. 

Mediation in the Central American hostilities. 

Mediation in the coal strike in the United States. 

Intervention in and temporary occupation of Cuba. 

Call of Peace Conference at The Hague. 

Investigation of packing houses and strengthening of pure 
food laws. 

Postoffice department investigations. 

Enforcement of laws with reference to Interstate carriers. 

Settlement of the Alaskan boundary dispute. 

Establishment of the Irrigation and Reclamation Service, and 
extension of forest reserves. 



Defense against injurious importations is as necessary 
and justifiable as is an army and navy. — Hon. B. F. Jones. 

Changes in tariff schedules can with safety be made only 
by tbose whose devotion to the principle of protection is be- 
yond question. — From Presiflent Roosevelt's speech of accept- 
ance. 

We cannot help labor by reducing 1 the value of the money 
in which labor is paid.— Hon. Win. 3IcKinley to delegation of 
workingmen, August 24, 1S9G. 

The business world—that is, the entire American world — 
can not afford, if it has any regard for its own w elf are, eA T en 
to consider the advisability of abandoning the present [pro- 
tection] system. — President Roosevelt at Minneapolis, April 
4, 1903. 

"We can as little afford to tolerate a dishonest man in the 
public service as a coward in the army. The murderer takes 
a single life; the eorruptionist in public life, whether he be 
bribe giver or bribe taker, strikes at the heart of the com- 
monwealth. — President Roosevelt's speech at Sherman statue 
unveiling, Oct. 15, 1903. 

It is always safe to array yourself on the side of your 
country; it is always safe to stand against lawlessness and 
repudiation.— Maj. McKinley at Canton, Sept. 23, 1S96. 

We have lower interest and higher wages, more money 
and fewer mortgages. — President McKinley. 

While this is a big country, it is not now, and may it 
never be, big enough knowingly to admit into the ranks of 
its citizenship any avowed disorganizer of government or 
any avowed scoffer at our republican institutions. But our 
hands are outstretched to those who come to us with worthy 
purpose. — Postmaster-General Cor t el yon. 

The only antitrust law on the Federal Statute books bears 
the name of a Republican Senator. The law creating an 
Interstate Commerce Commission bears the name of another 
Republican Senator and all the law is being enforced by a 
Republican President. — Hon. E. L. Hamilton, in Congress, 
April 14, 1904. 

We do -well to give the sanction of the Federal law to tlie 
principle of arbitration. We should encourage a spirit of 
concord and mutual respect between employer and employee, 
between the common carriers of interstate commerce and 
their employees.— Hon. C. W. Fairbanks, in U. S. Senate, May 
12, 1808. 

One vital, dominating fact confronts the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BR VAN'S NOMINATION MEANS TAFT'S 
ELECTION.— New York World. 



THE 60TH CONGRESS. 



What the Republican Majority lia* Done. 

[From the New York Tribune.] 

With the adjournment of the first session of the 60th Congress, an- 
other creditable page has been added to the history of the Republican 
party. Meeting under conditions not wholly auspicious, confronted by 
unsettled business conditions and hampered almost throughout the session 
by the unreasonable filibustering tactics of the Democrats in the House, 
the leaders of the majority have written numerous valuable laws on the 
national statute books and have added a quota to the body of international 
law never before equaled by any session in the annals of the nation. 

In the face of widely varying opinion* on the subject of finance the 
Republican majority has once more demonstrated its remarkable ability 
to subordinate personal views and preferences to the opinion of the ma- 
jority, and the most important law' of the session, the compromise financial 
bill, is the result. Whatever view may be entertained of the respective 
merits of the various financial theorems which found abundant expression 
in course of the session, few impartial judges will withhold admiration for 
the party discipline which brought harmony out of practically irreconcilable 
differences and enacted a law which, although it will probably never be 
called into action, constitutes an insurance against recurring monetary 
stringencies and their consequent panics. Moreover, the constructive 
ability which made this law possible furnishes an earnest of the highly 
desirable results to be expected from tfbe work of the National Monetary 
Commission, which has been created to evolve a new financial system which 
shall obviate all reasonable objections to existing methods and place the 
federal finances on a basis as sound as the demands of a rapidly and 
steadily growing country and a constantly expanding commerce require. 

Aside from the financial law, the legislation of this session is com- 
posed of a great number of comparatively small laws, thoughtfully con- 
ceived and perfected with much hard work and care, the aggregate con- 
stituting a highly valuable addition to the federal statutes, although 
few are in themselves of outstanding importance. The work of the Senate 
in perfecting and approving international conventions must compel ad- 
miration from every student of public affairs. 

The most perfect harmony and cooperation have existed between the 
Department 'of State and the Senate, and rarely has the Committee on 
Foreign Relations held a formal meeting without the attendance of Secre- 
tary Root, whose wise counsel has been eagerly sought, whose lucid ex- 
planations and logical arguments have proved invaluable to the com- 
mittee, with the result that forty-one treaties have been ratified and only 
one is left for further consideration, the international convention governing 
the operation of wireless telegraphy. Three Hague conventions have been 
left without action, but two of these were not signed by the American 
plenipotentiaries to the second Hague convention, and ratification of the 
third was not urged by the Secretary of State. 

The cause of arbitration has been promoted by the ratification of 
treaties with twelve of the great payers ; the approval of eleven Hague 
conventions will materially make for peace and diminish the hardship to 
non-combatants in international wars, while treaties with Japan protecting 
the integrity of American trademarks and copyrights from imitations and 
infringement by Japanese citizens in China and Korea will go far to 
dissipate a hitherto productive source of friction between this country 
and Japan. The skillful negotiations of the representatives of the United 
States and Great Britain and the cOrdial cooperation of the Senate have 
removed numerous obstacles to the friendly relations of Canada and this 
republic, and the result of the conventions ratified will be the impossibility 
of boundary and jurisdiction controversies. 

One of the most important laws enacted perfects former legislation 
increasing the efficiency of the militia. Under the former law the equip- 
ment of the militia with arms and accoutrements similar to those of the 
regular army was partly accomplished, but the new statute practically 
makes the national guardsmen an integral part of the national military 
establishment, subject to the call of the President in time of need, ob- 
viating the necessity Of reorganization and even partial re-equipment of 
the state forces during the stress of threatened hostilities. 

True to its promises as expressed in several national platforms the 
Republican party has cheerfully acknowledged the arrival of the hour 
when the existing tariff schedules must be readjusted to meet new con- 
ditions, and both houses Of Congress have made ample provision for the 
accumulation and compilation of such information as may be needed in 
the revision scheduled to occur at a special session of Congress to be held 
next spring. 

Responding to the recommendation of the President, the Congress has 
made provision for an act of international justice and generosity only 
paralleled by the relinquishment of the control of Cuba — the voluntary 
remission of more than $10,000,000 of the indemnity exacted from China 
to meet damages resulting from the Boxer uprising. 

Geuerous provision has been made for the extension and completion 
of the national defenses by the addition of two modern battleships to the 
navy, besides several smaller vessels ; the fortification of Pearl Harbor 
and the establishment there of an effective naval base, the completion of 
several coaling stations already begun, and the perfection of modern sys- 
tems of fire control, the installation of up-to-date batteries and the con- 



THE SIXTIETH CONGRESS. 323 

struction of modern ordnance for coast defenses already established. 
Proper provision has been made for the increased demands of the modern 
navy by increasing the personnel by six thousand men and the marine 
corps by six hundred officers and men, and the pay of the army, navy and 
marine corps has been increased in accordance with the demands of 
modern civilization and the increased requirements of foreign service and 
numerous and long transfers of station. 

The Republican party lias pursued its customarily generous course to- 
ward the veterans of past wars and has cared for the dependents of the 
men who have -given their all to their counfry by an increase of the small 
stipends of their widows by 50 per cent. 

The Philippines have not been forgotten, an additional member having 
been added to the islands commission and the application of the coastwise 
laws of this country to the archipelago having been suspended in the 
interest of Philippine commerce and prosperity. 

In the light of experience gained from past misfortunes the navigation 
laws of the country have been revised and strengthened at every point, 
and the safety of those who for pleasure or duty go down to the sea in 
ships has been enhanced and safeguarded in every possible manner, in- 
cluding the establishment of numerous additional lighthouses, placing of 
buoys, and the control of the vessels and their crews. 

Labor has been cared for in many ways. A revised employers' lia- 
bility lav/ has been enacted to replace that declared unconstitutional by the 
Supreme Court ; a federal liability law, protecting those government em- 
ployes engaged in hazardous in dertakings has been placed in the statutes, 
and only the extravagant demands of certain labor leaders have prevented 
the enactment of nn equitable anti-injunction law, to which subject the 
entire Republican membership of the House devoted many hours ; and for 
the juvenile wage earners a child labor law has been enacted for the 
District of Columbia which it is hoped and believed will serve as a model 
for numerous state statutes. 

Matters Left for Future Action. 

Among the measures left for further consideration at the next session 
of Congress are some of the most spectacular propositions of the session, 
some policies urged by the President and others advocated vociferously in 
the public prints, many, perhaps, of hardly equal importance to measures 
which have been enacted without attracting extensive popular attention. 
But intelligent examination of these policies and proposed laws reveals 
the fact that they are replete with difficulties, and that only that prudent 
deliberation which has ever characterized the legislative work, of the Re- 
publican party can insure the success of such policies when finally enacted 
and avert the pitfalls offered by hasty or inconsiderate action. Much 
time and thought have been devoted at this session to every important 
subject which failed of action, time and thought which must ultimately re- 
sult in wise legislation free from those errors of policy and inaccuracies of 
statutory expression which are inevitable concomitants of hasty consider- 
ation of important and intricate leglislative problems. 

Important Laws Enacted. 

Sixtieth Congress, First Session, December 2, 1907, to May 30, 1908. 

Financial lav/ wherry banks in periods of financial stringency may 
issue currency to the amount of $500,000,000, depositing as security therefor 
bonds, commercial paper or other assets, such emergency currency being 
so taxed as to insure its retirement as soon as the stringency has passed. 

Customs lav/ changed so that importers must present all evidence in 
appeal before board of appraisers, simplifying procedure, increasing ap- • 
praisers' salaries and making them removable Only for cause. 

Militia made integral part of the national military establishment, 
with additional appropriation of $2,000,000 for equipment, etc., making 
total annual appropriation for militia of $5,000,000. 

Public buildings bill, authorizing many needed structures, purchase of 
sites, etc., including site for Departments of State and Commerce and 
Labor, adjoining Treasury and White House grounds. 

tional monetary commission created to devise a sound monetary 
system for the government. 

Two new battleships, at cost of $6,000,000 each, exclusive of armor 
and armament ; ten torpedo boat destroyers, three steam colliers and eight 
submarines. 

Consular service reorganized, abolishing unnecessary consulships and 
consul generalships and establishing those most needed. 

Widows' pensions increased from $8 to $12 a month and certain un- 
ary restrictions abolished. 

Importation of impure tea, tea sittings, etc., prohibited. 

"In God We Trust" restored to gold and silver coins. 

Investigation of tariff, preliminary to revision, confined to Ways and 
Means and Finance commitl 

Model child labor law for District of QJolumb 

Employers' liability bill enacted to replace thai ■! uncon- 

stitutional h; Supreme Court. 

Government liability law, providing compensation to all federal em- 
ployes for injuries received In 

Additional safeguards provided for rega,ttas. 

Provision for fortified naval base at Pearl Harbor, Hawaii, for 
Hawaiian drydoek and the completion of coaling San Diego and 

nia City Point. 

Effi< irmy medical corps Increased by additional officers and 

creation of r< erve medical corps. 
. protected. 

Increasing army pay, officers approximately $500 a year each and 
enlisted men about 10 per cent, i; plying to both retired and active 



324 THE SIXTIETH C0WQRES8. 

Increasing navy pay, officers and enlisted men practically equalized 
with army. Enlisted force increased 6,000 men. 

Marine corps increased approximately 600 officers and enlisted men. 

Restrictions on lands of the Five Civilized Tribes removed adding 
$150,000,000 to taxable property of Oklahoma. 

Addition 'of one member to Philippine Commission. 

Numerous additional lights, lighthouses, and buoys. 

Creation of rank of captain in Philippine Scouts, companies having 
heretofore been commanded by lieutenants. 

Enlarging the classification of employees to whom railroads may grant 
free transportation. 

Provision that appeals from decisions of federal courts on habeas 
corpus proceedings shall be had only when such court or a justice of the 
Supreme Court decides there is ground for appeal. 

Immigration station established at Philadelphia at cost of $250,000. 

Additional safeguards for passenger-carrying ships provided. 

Efficiency of life-saving service promoted by raising compensation and 
providing pensions. 

Payment of damages of $400,000 for Catholic Church property de- 
stroyed in Philippines. 

Establishing thirty additional fish hatcheries and otherwise increasing 
efficiency of Fish Commissi'on. 

Granting 3,000 pensions to deserving veterans of the' Civil and Spanish 
wars. 

Repealing application of coastwise laws to the Philippine Islands. 

Secretary of Navy authorized- to receive and care for gifts to naval 
vessels. 

Creation of commission and appropriation of $1,500,000 for repre- 
sentation of the United States at the Tokyo exposition. 

Prohibiting desecration and improper use of the flag. 

Revenue cutter service increased by transfer to that service of gun- 
boat Vicksburg. 

Salaries 'of assistants to Cabinet officers raised to $5,000 a year. 

Appropriation of $14,500 to meet expenses of counting electoral vote. 

Appropriation of $29,227,000 for the Panama canal. 

Appropriation 'of $20,000 for continuing survey and marking boundary 
between the United States and Canada. 

Female nurse corps established for navy hospitals and navy hospital 
ships. 

Military bands must not compete with civilian musicians. 

Drainage of public lands in Minnesota, including all unpatented lands. 

Joint maneuvers of army and militia authorized, with $1,000,000 ap- 
propriation. 

Remission of $10,800,000 of the Chinese indemnity resulting from 
Boxer uprising. 

Anarchistic and seditious publications and intoxicants and cocaine ex- 
cluded from the mails. 

Attorney General directed to institute suits to compel forfeiture to the 
United States of certain lands granted to the Central Pacific, Oregon Short 
Line, etc^, on ground of violation of contract. 

Invitation extended to all nations to send delegates to the International 
Tuberculosis Congress, to be held at Washington, beginning September 21, 
1908. 

Chippewa national forest reserve created in Minnesota. 

Patent law amended so that all patents shall issue within three 
months after final fee is paid, and that in the event of the death of patentee 
any patent pending shall issue to his legal heirs. 

Secretary of War authorized to expend $250,000 for the relief of suf- 
ferers from cyclone of April, 1908, in Georgia, Alabama, Mississippi and 
Louisiana. 

Interstate Commerce Commission authorized to prescribe regulations 
for the transportation by common carriers of explosives, to promote the 
safety of passengers- and employees. 

Penalty imposed on soldiers who sell their arms, uniforms, or accouter- 
ments mitigated. 

Railroads engaged in interstate commerce prohibited after January 
1, 1910, from using any locomotive equipped with an ashpan which neces- 
sitates an employee getting under the engine. 

Sixty-two laws authorizing construction of bridges over navigable 
streams. 

Five laws authorizing construction of dams in navigable streams. 

Nine laws affecting federal courts, judicial districts, etc. 

Seven laws affecting customs, granting increased privileges to certain 
ports, etc. 

Twenty-five laws affecting public lands, making special grants, etc. 

Seven laws for the District of Columbia, including prohibition of all 
betting within the District and providing for free examination of sputum 
in suspected cases of tuberculosis. 

Five laws authorizing the Secretary of War to donate obsolete ordnance 
to quasi-military organizations, including one of Confederate veterans and 
one erecting a Confederate monument. 

Pediment for House front of the Capitol provided for at cost of $75,000. 

Resolutions condemning Representative Lilley and exonerating members 
of the House from implication of improper influences in connection with 
submarine boat appropriations. 

Commission, consisting of Secretary of War, chairmen both c'ommittees 
on Public Buildings and one District commissioner, to investigate Bieber 
land scandal and similar cases. 

Investigation of wood pulp industry ; House committee reported no 
warrant for altering tariff at this time and no conclusive evidence of a 
trust, but sufficient ground for further investigation. 

One hundred and fifty-two public laws were enacted. 

There were 2,300 invalid pension acts and about 700 private pension 

«ills introduced: In House, over 22,000; in Senate, over 7,000 



_ 



THE SIXTIETH COX (1 REUS. 325 

Measure* Left Over for Next Session. 

Venezuelan reprisals, correspondence, etc., left in Senate Committee 
on Foreign Relations. 

Brownsville resolutions, providing for restoration to the array of cer- 
tain soldiers discharged from the 25th Infantry. 

Changes in administrative customs laws, in accordance with agree- 
ment with Germany. 

Postal savings bank bill. Left on Senate calendar. 

Parcels post reduction. No action by either house. 

Provision for model of battleship for each state for which such ship 
is named. Left in House committee. 

Federal injunctions against state statutes to be issued only by majority 
of three federal judges ; left in House Judiciary Committee. 

Anti -injunction legislation. Left in House Judiciary Committee. 

Federal grain inspection. Left in Interstate Commerce Committee. 

Amendments to Sherman anti-trust law. Left in House Judiciary 
Committee. 

Campaign publicity legislation. Left in Senate committee. 

Creation of public utilities commission for District of Columbia. 

Amendment 'of interstate commerce law to give states jurisdiction over 
intoxicating liquors brought within their boundaries. 

Naturalization law amended increasing the fees for complete nat- 
uralization from $5 to $10 and providing for additional clerks of courts 
authorized to grant naturalization. 

Treaties Ratified by Senate Tliis Session. 

Eleven Hague conventions — rights of neutrals, laws of war on 
land, hospital ships, naval bombardments, rights of capture in naval war, 
restriction of submarine mines, prohibiting discharge of projectiles and 
explosives from balloons, pacific settlement international controversies, limit- 
ing employment of force for collection of contractual debts, governing open- 
ing of hostilities and adapting Geneva convention to maritime warfare. 

Establishment of international health office. 

Pan-American copyright and code of international law. 
Twelve arbitration conventions — Denmark, Franca, Great Britain, Italy, 
Japan, Mexico, Netherlands, Norway, Portugal, Spain, Sweden and Switzer- 
land. 

With Great Britain — Canadian boundary, Canadian fisheries, wreckage 
and salvage and conveyance of prisoners in United States and Canadian 
territory. 

Extradition with Spain, San Marino and Portugal and Uruguay. 

Protection of trade-marks in China and Korea with Japan. 

Naturalization with Peru, Portugal and Salvador. 

Treaties Considered tout Not Ratified. 

Three Hague conventions — creation of international prize court, affect- 
ing status of merchant ships at outbreak of war and conversion of mer- 
chant ships into warships. Disapproved by c'ommittee. 

Wireless convention — international treaty defining duties of wireless 
telegraph companies, etc. 

Presidential Messages. 

The President sent to Congress twenty messages, including nine trans- 
mitting reports of federal officers, in response to resolutions, etc. Eleven 
special messages rec'ommended general or special legislation. The most 
important executive communications were the annual message of December 
3, 1907, and special messages, as follows : 

December 21, asking continuance of Biological Survey. 

January 6, urging that additional census employees be subject to Civil 
Service regulations. 

January 28, urging pensions, etc., for life-saving service. 

March 25, urging general legislation. 

April 14, urging authorization of four battle ships. 

April 27, urging general legislation. 

The President also sent to Congress one veto message, in which he 
disapproved a bill granting an extension of time to a company 
authorized to dam t"he Rainy River, in Minnesota, but, with his; col 
it was later passed over his veto. 

Detailed Appropriations Tliis Session for Fiscal Year ending 
June 30, lOOS. 

Agriculture $11,672,106 00 Pension $1< 00 00 

Army 7 61 Post-Office 

Diplomatic and Sundry civil ... 112,9 

Consular .".463 91 Urgent del 

olum- Ad-:: 

bin 10,1 > : 

Fortification . . . 

9,25 I 

I 

P annual 

Navy 122,662, 185 17 

I I . 



326 THE SIXTIETH CONGRESS. 

The Record of Appropriations for Twenty Fiscal Years. 

1909 $1,008,804,894 57 1899 $862,682,487 06 

1908 967,644,065 05 1898 485,002,044 72 

1907 879,589,185 16 1897 -469,494,010 41 

1906 820,184,634 86 189b 457,088,344 72 

1905 781,172,375 18 1895 459,925,178 62 

1904 736,578,402 76 1894 479.932,667 08 

1903 796,633,864 79 1893 463,684.385 20 

1902 757.607,464 72 1892 514,424,019 49 

1901 719.278,826 89 1891 509,368,345 86 

1900 690,667,188 54 1890 385,522,307 61 



INCREASE OF OFFICES DURING THE PAST YEAR. 

Chiefly Postal Clerks to enlarge the Mail Service, and Sea- 
men in the Navy to Equip New Vessels. 

The Democratic platform of 1908 says : "During the past 
year 23,784 office holders were added, costing $16,156,000." 

An official statement prepared and issued by the clerks of 
the House and Senate appropriation committees, showing the 
appropriations, new offices, etc., of the 60th Congress, states the 
number of new offices specifically created 16,824, and those 
omitted, 6,142, making the vet increase 10,682. The total of sal- 
aries for the new offices above named is given at $13,766,376, 
and that of those omitted $4,6 78,389. making the net increase 
in salaries for offices specifically created, $9,087,987. In addition 
there was appropriated for new offices in which the number 
and salary of each was not named a sum of $2,948,687, and 
omitted in this class a sum of $319,984, making the net increase 
in this group $2,628,703, and the net total of increase 
for all salaries $11,716,690 instead of the $16,156,000 named in 
tne Democratic platform. 

The principal net increase in number of "new offices" was 
as follows: 6,000 seamen in the navy at $3"6,60 per month, 3,363 
postal employees, chiefly at salaries ranging from $100 per 
mouth downward, and 809 additions to the marine corps. 
All of these increases were supported by Democrats and Kepub- 
licans, irrespective of party. 

Another "increase in salaries" which will doubtless be ex- 
ploited by the same class of fault finders, is the advance in 
salaries of 129,928 existing offices at an increased annual ex- 
pense of $9,146,575. The principal items in this increase are as 
follows : 49,277 private soldiers in the army, pay increased $2.00 
per month; 36,000 seamen, pay increased $3.60 per month; 7.169 
privates in the marine corps, pay increased $2.00 per month; 
2,500 apprenticed seamen, pay increased $1.60 per month, the re- 
mainder of the increase being in most cases non-commissioned 
officers in Army and Navy, and the rate of increase small. 



National Expenditures, Though Growing Rapidly, do not 

Keep Pace With the Increasing National "Wealth — So 

the Burden of the National Government Becomes 

. Smaller and Smaller with the Passing of the Decades. 

[Statement of Census Bureau, printed in daily Congressional Record May 
30, 1908, as a part of speech of Hon. James A. Tawney.] 

The average annual per capita expenditure of the National Govern- 
ment payable from taxes for eight years 1816 to 1853 was $2.02 ; 
for the eight years ending June 30, 1905, it was $6.05; and for the year 
ending June 30, 1907, $6.77. The average for the eight years 1898 to 
1905 was 3.29 times, and that for 1907 was 3.35 times, the correspond- 
ing average for the period 1846 to 1853. To the extent represented by 
these numbers did the expenditures payable from taxes Increase faster 
than population. 

The per capita of national taxable wealth was $308 In 1850 and 
$1,234 in 1904. In the latter year it was four times what it was in 
1850, indicating that the relative ability of the nation to pay taxes had 
increased in fifty-four years four times, while the national expenditures 
payable from taxes had increased in the fifty-seven years ending in 
1907 only 3.35 times. The national wealth, or the ability to meet govern- 
mental expenditures, increased at least 20 and possibly 25 per cent more 
than did the national expenditures to be met from taxation. Considering 



TEE SIXTIETH CONGRESS. 



327 



the number of people In the country to be taxed the present National Ad- 
ministration makes the Government 3.35 times as costly to the taxpayer as 
did the Government of 184*6 to 1853. Bat taking account of the wealth 
of the citizens or their ability to support the Government, the Administra- 
tion of the United States in 1907 was only 73 or 80 per cent as burdensome 
as that which controlled the country at the middle of the last century. 

The following table presents the actual expenditures of the Federal 
Government by decades, from 1850 to 1907. a period of fifty-seven years, 
and the amount which such expenditures represents per $1,000 of national 
wealth as compiled at the various census periods mentioned. The propor- 
tion per $1,000 of national wealth of the taxes levied to meet the expend- 
iture, including schools, for government other than Federal, from 1860 
to 1902, and the grand total of expenditure for government, exclusive of 
Federal, compiled only at the Eleventh and Twelfth Censuses, are also pre- 
sented. 

Total national wealth and expenditures of the Federal Govern- 
ment and of State, county, municipal, and all local govern- 
ments, per $1,000 of wealth, I860 to 1907. 





Total na- 
tional wealth. 


Total expendi- 
tures of Nation- 
al Govemmeni 
taxable.; 


Tax levy for ex- 
penditures for 
States, counties, 
cities, minor civ- 
il divisions, in- 
cluding schools. 


Payment for ex- 
pend! tu rt-s for 
States, counties, 
cities, rninorciv- 
11 divisions, In- 
cluding schools. 


s 
> 


Amount. 


Per 
$1,900 of 
national 
wealth. 


Amount 


Per 

81.000 of 

national 

wealth. 


Amount. 


Per 
$1,000 
ot na- 
tional 
wealth. 


IRtO 


$7,135,780,228 
16, 159, 616.06S 
24,054,814,806 
41,067,122,000 
61,203,755.972 
82, 304. 517, 845 
a91, 238, 732, 8-42 
100,272,947,840 
all3,749,270,337 


^6,448j36fe 

71,718,943 
313,429,226 
298,163,117 
358,618,535 
590,065,371 
593,038,905 
725,984,946 


$6.5 
4.4 

13.2 
7.3 
5.9 
7.2 
6!.5 
- Q 










1-60 
1S70 
13*0 


$94,186,746 
226,185,629 
313,921,474 
471,365,140 


$5.8 
9.4 
7.6 
7.7 







1S90 

l^no 


$569,252,634 


$9.3 


1902 
1904 


__ 
724,736,530 


7.9 


1,156,447,085 


12.8 



1907 


762,483,752 6.7 






::.::::::: 








... 








a Estimated on basis of increase 1900-1904. 

The expenditures of the National Government payable from taxation 
may be compared with the general property taxes levied for the support 
of State and municipal governments. The tax levies for State and munic- 
ipal governments were ascertained by the Bureau of the Census for 1880, 
1890, and 1903. For 1880 the per capita of such levies was $6.26, and 
in 1902, $9.22. In twenty-two years it increased 47.3 per cent. The 
per capita of national expenditures pavable from taxation in 1880 was 
$5.28, and in 1902, $5.91, and in 1907, $6.77. The percentage of in- 
crease from 1880 to 1902 was 12, and from 1SS0 to 1907, only 28.2. 
The former was only a fourth and the latter barely 60 per cent of the 
corresponding percentage of increase of State and local taxation for 
twenty-two years. State and local taxation is increasing proportionately 
with national wealth and the ability of the people to meet the added costs 
of local government, while national expenditures — though growing rapidly 
— do not keep pace with the increasing national wealth : and so the burden 
of National Government becomes smaller and smaller with the passing of 
the decades — at least, that has been the general trend of affairs since the 
middle of the nineteenth century, in spite of the cost of the civil war with 
its legacy of heavy interest and pension charges. 



THE WOOD Ptl.r AND TAPER INVESTIGATION. 

The following- are extracts from the report of the House Com- 
mittee appointed to inquire into the complaint that prices of 
news-print paper had been arbitrarily and unjustly advanced by a 
trust or combination : 

The select committee of the House appointed to inquire into the ele- 
ments and conditions involved in the production and supply of wood pulp 
and print paper in so far as the same are or may be affected by any com- 
bination or conspiracy to control, regulate, monopolize, or restrain inter- 
state or foreign commerce and trade in the manufacture, supply, distribu- 
tion, or sale cf wood pulp or paper o. or any of the articb 
tering into the same, or any of the products of pap< r, and how far the 
same may be affected bv the import duties upon wood pulp or paper of any 
kind, and how far the same may be affected by the rapid destruction of the 
forests of the United States and consequent In the price of 
wood which enters into the manufacture of wood pulp, and also to In- 
quire whether the preseut prices of print and other paper are controlled 
in whole or in part by any coinhinat ion corporatloi 
gaged in commerce among the several States or with foreign nations, and 



328 THE SIXTIETH C0NGFE8S. 

if so, to inquire into the organization; methods, and practices of such cor- 
porations or persons, and also to inquire into certs in alleged facts and 
to obtain all possible inToitmation in regard to the same, beg leave to 
mit a partial and preliminary report and to say that since its appoint- 
ment the committee Las been diligent in making its investigation, and the 
members of the committee have devoted practically their entire time since 
pppointment to the work of the committee., neglecting their other official 
duties for that purpose. 

The committee listened with interest, attention, and care from April 
25 to May 14 to the witnesses appearing in behalf of the contentions 
of the American Newspaper Publishers' Association, and followed with 
painstaking care the statements made aod evidence presented by Mr. 
John Norris, who appeared as the special representative of that associa- 
tion. Every opportunity has been given to newspaper publishers to present 
evidence before the committee, though not all of the publishers who offered 
to appear or whom the committee would like to hear feave yet been ex- 
amined. 

In addition to the testimony presented before the committee, your 
committee sent out, May 6, 7,000 letters to various' newspapers and other 
publications throughout the country. 

Contention of Publishers. 

It has been the contention of the newspaper publishing interests — 

First. That the price of news-print paper was advanced in Septem- 
ber, 1907, to $50 per ton in New York and correspondingly elsev/here, 
a figure that was claimed to be $12 per ton in advance of the price of 
two years previous, and that a still further advance was threatened of 
$10 per ton more, thereby planning, as claimed, an advance of $22 per 
ton. 

Second. That the advance actually made and the planning of a fur- 
ther advance were both the result of a combination or conspiracy en- 
tered into by the news-print paper manufacturers or their selling 
agents. 

Third. That such advance in price and such combination to make 
further advance were caused, or at least in part aided, by the tariff duties 
imposed on wood pulp and print paper, and hence that, in justice to the 
newspapers and other printing and publishing interests of the country, the 
duties on pulp and paper should be repealed. 

Fourth. That the decree of the United States court dissolving the 
General Paper Company had been willfully violated by paper manu- 
facturers in Michigan, Wisconsin, and Minnesota, parties to that decree, 
who had in violation of the decree acted in concert and agreed as to prices 
and to the imposition of conditions upon the manufacture, sale, and distri- 
bution of the paper manufactured. 

The above may not completely state the contention of the newspaper 
publishers, but it gives a general and fair idea of their claims. 

One of the inquiries submitted to your committee was to the effect 
of the destruction of the forests -of the United States upon the production, 
supply, aDd price of wood pulp and print paper. 

It appears that the average price received by the International Paper 
Company for paper delivered was, in 1900, $2.06 ; in 1901, $2.12; in 1902, 
$2.07; in 1903, $2.14; in 1904, $2.12; in 1905, $2.07; in 1906, $1.99; in 
1907, $2.05, and for the first three months of the current year, $2i.20 per 
hundred pounds. 

The average selling price of the St. Regis Paper Company per hun- 
dred pounds of news-print paper f. o. b. mill for January, 1903, was 
$1.75; January, 1904, $1.75; January, 1905, $1.74; January, 1906, $1.47; 
Janvary, 1907, $1.75 ; January, 1908. $2.13. The evidence shows that 
at this mill, while the selling price f. o. b. mill had increased from $1.75 
in January, 1903, to $2.13 in January, 1908, the cost of production, ex- 
cluding interest and depreciation, had increased from $1.30 in January, 
1903, to $1.61 in January, 1908, and that in January, 1906, while the aver- 
age selling price was $1.47 the average production cost was $1.54. 

Combination in Restraint of Trade. 

The evidence before the committee so far fails to prove any combina- 
tion of print-paper manufacturers to advance prices or otherwise in re- 
straint of trade, but considerable evidence was presented which might excite 
suspicion that such a combination had been made and was in existence. 
Evidence was presented in relation to a combination of manila and fiber 
manufacturers, and it seems to be admitted that that combination did exist, 
has since been dissolved -with a fall in the price of its products, and is now 
under investigation through the Department of Justice in the United States 
court at New York. 

Such of the paper manufacturers as-, have appeared before your com- 
mittee during its hearings have strenuously and completely denied under 
oath the existence of any combination, agreement, or understanding of any 
nature whatever among the paper manufacturers or their selling agents to 
regulate, control, or advance the price of paper, the assignment of custom- 
ers, or for any other purpose in restraint of trade. 

Increased Cost of Production. 

The mill owners Insist that there has been a decided increase in the 
cost of producing paper, caused — 

First. By the increase in the cost of pulp wood and wood pulp. 

Second. By increase in the wages of tie employees. 

Third. By reduction of the hours of labor per employee per day. 

Fourth. By the increase In the cost of other articles which enter in- 
to the production of paper. 




TEE S1XTIETE CONGRESS. 



Increased Cost of Wood Pulp. 



829 



There seems to have been a decided increase in the cost of pulp wood. 
This is admitted by everyone. The average cost to the International Paper 
Company of pulp wood in the rough per cord, delivered at the mill, from 
1898 to 1908 is stated to us as follows: 



1898 $5.38 

1899 5.26 

1900 6.07 

1901 6.43 

1902 6.83 

1903 6.77 



1904 $7.49 

1905 7.79 

1906 8.00 

1907 8.54 

1908 (first three months) 10.14 



The average cost to the Northwest Paper Company, at Cloquet, Minn., 
for pulp wood per cord, in the rough, 8-foot lengths : 



1902 $3.15 

1903 3.40 

1904 3.60 



1905 $4.10 

1906 5.15 

1907 7.40 



There seems to have been a considerable increase in the average weekly 
-wage of the employees in the paper and pulp mills. This increase has not 
been greater than seems to your committee to have been necessary, owing 
to the increased cost of living, and the wages now paid in the paper and 
-pulp mills would not be generally considered high as compared with other 
skilled labor, though this may be largely owing to the fact that the mills 
are generally located on streams apart from large centers of population. 

Some Increase in tlie Price of Paper Justified. 

It would appear that the increase in the value and cost of pulp wood, 
the increase in wages, the decrease in the hours of labor of many of 
the employees, and the increase in the cose of other materials used, justi- 
fied some increase in the price of paper ovei the prices previously prevailing, 
notwithstanding some economies perfected in the production of pulp and 
paper. The International Paper Company i3 the largest producer of news- 
print paper in the United States, and produces from 30 to 40 per cent of the 
entire output. 

The evidence shows that the net earnings of that company for the fiscal 
year ending June 30, 1901, were $3,054,000 ; that the average net earn- 
ings of the company for the fiscal years from 1899 to 1905, inclusive, were 
$2,316,000 ; that for the fiscal year ending June SO, 1906, the net earn- 
ings fell off to $1,9S5,000, and for the fiscal year ending June 30, 1907, 
to $1,623,000 and for the first six months of the calendar year 1907, to 
$777,000 ; that about the middle of the calendar year 1907 the manufactur- 
ing department of the 3aid company submitted reports, showing an estimated 
increased cost of production for the calendar year of 1908 of $1,500,000 
over that for the fiscal year ending June 30, 1907. based on the same 
.quantity of paper. 

Canadian Competition. 

The principal competition with the news-print paper and pulp mills 
<jf the United States comes from the Canadian mills. From Canada we 
Import a large and rapidly increasing amount of pulp wood. We also import 
a considerable quantity of wood pulp and are uow importing some quantity 
of news-priat paper. 



Exportations from Canada. 

Some of the provincial governments in Canada now discriminate against 
pulp wood for exportation. It is said that most of the forests in the Prov- 
inces of Quebec and Ontario suitable for pulp word • are public, or Crown 
belonging to the provincial government.;. The Province of Quebec 
s a license cr stumpage charge of 65 cent*, for each cord of pulp wood 
out on its Crown lands, with a reduction or rebate of 25 cents for each cord 
manufactured into pulp within the Dominion of Canada. 

This amounts to an export charge cf 25 cents per cord, or nearly 40 
per cent of the original license or stumpage charge. It is from the 
Province of Quebec that most of the pulp wood now imported in1 

I Suites is obtained. a and other western mnor and pn!n 

mills could much more cheaply obtain wood i»ulp from the Province of 
Ontario than from Quebec, but the Province of Ontario absolutely prohibits 
the exportation from C : wood cut on its public lands, 

thoua-h permitting such cutting for manufacture at fa 
Th rmly of the opinion that ihs tarifl 

and on wood pulp should not he removed fee to paper or pulp coming from 
.any countrv or place which proh itiou of pulp wood. 

r>T which levies any e? on paper, pulp, cr pulp wood, or 

c ] ar ge ;• d pulp or pulp wood Intend 

tir, n to the LTnil 

The evidence taken so far would seem to indicate that the temporary 
.live removal of th< 

be coupled with the right to free exportation of : 

forests. The removal of the tariff on prim pa] 
followed by an export duty on p 

ablv result in a considerable Increase in the price ol :"l the 

ear'lv destruction of the pulp w id Crests In the Unit 

A low or even moderate price for print 
pendent mainly upon the future supply and <•<> -; ol pulp wood. 
one-third of the pulp wood now consumed in the manufacture of paper 
by our mills is Imported from Canada. U' an estp >rt d be levied 

fcy C *OOd 07 If 

bec should follow the example .■• ace of Ontario and entirely pro- 



SSO TEE SIXTIETH CONGRESS. 

hibit the exportation of pulp wood cut on its Crown lands, the cost of pulp 
wood in the United States would bs greatly enhanced and the price of paper 
would go up. 

A mistaken policy might easily prove of inestimable damage and cause 
the practical destruction of the cheap daily newspaper. 

It would seem that for the American publisher to be assured of low 
prices for his paper, it is essential to maintain paper mills in the United 
States. Any policy that would give the Canadian mills a preferential advan- 
tage over American mills in obtaining the raw material at a lower price 
must inevitably result in the dismantling of American paper machines and 
the ultimate dependence of American publishers on Canadian mills. Under 
such conditions Canada could levy export duties on print paper that would 
result in enhanced prices without the presence of competition from American 
paper manufacturers. 

So far as the information yet presented to the committee discloses the 
facts, your committee is inclined to the opinion that if the American mills 
can obtain pulp wood from Canada on even terms with the Canadian mills, 
they can make ground wood pulp as cheaply as it can be imported from 
Canada free of any duty. What effect the removal of the tariff upon paper 
would have as to Norwegian and other European competition, your com- 
mittee is at present unable to say, though it has been claimed before your 
committee that the wages paid in European countries are only one-third to 
one-half ©f the wages paid in the mills of the United States, and that under 
free trade competitisn the low wages in the European countries would 
be disastrous to the wage scale and the hour scale in the American paper 
mills. 

Your committee proposes during the summer vacation to continue 
its investigation and expects to be able to present to the House at the next 
session of Congress definite recommendations, based upon complete informa- 
tion thoroughly considered, as to the various matters of inquiry submitted to 
the committee. 



What I am anxious to emphasize is that there is a wide 
economic and business field in which fhe interests of the 
wealthiest capitalist and the humblest laborer are exactly 
the same.— Hon. Wm. H. Taft, at Cooper Union, New York 
City 

The tariff affects trusts only as it affects all other in- 
terests. It makes all these interests, large or small, profit- 
able; and its benefits can be taken from the large only under 
penalty of taking- them from the small also. — President Roose- 
velt at Minneapolis, Minn., April 7, 1903. 

It is greatly in the interest of the working-man, there- 
fore, that corporate capital should be fairly treated. Any 
i^ustice done to it acts directly upon the Wage-earners, 
who must look to corporate wealth for their employment. 

— iion. Wm. H. Taft, at Cooper Union, New York City. 

Our aim should be to preserve the policy of a protective 
tai'iff, in which the nation as a whole has acquiesced, and 
yet wherever and whenever necessary to change the duties 
in particular paragraphs or schedules as matters of legisla- 
tive detail if such change is demanded by the interests of 
the nation as a whole—President Roosevelt at Minneapolis, 
Minn., April 4, 1903. 

The effect of the organisation of labor, on the whole, 
has been highly • beneficial in securing better terms of em- 
ployment for the whole laboring community. I have not 
the slightest doubt, and no one who knows anything about 
the subject can doubt, that the existence of labor unions 
steadies -wages. — Hon. Wm. H. Taft, at Cooper Union, New 
York City. 

* * Because there are men prominent i«i the business 
world who are forgetful of the privileges granted them, 
and of their relations to their fellows, there is n» occasion 
for indiscriminate condemnation.— Postmaster-General Cort- 
elyou, to Young Men's Republican Club, at Grand Rapids, 
Mich., Feb. 12, 1906. 

The Republican party is not only rich in men, but 
rich in practical and beneficent principles — it is rich too 
in its record, in promises performed and pledges fulfilled, 
and so we are for party and party principles first and 
will acquiesce in the choice of the majority, rallying around 
the standard bearer who will carry us again to victory. — 
Hon. James S. Sherman. 

All the prosperity enjoyed by the American people — ab- 
solutely all the prosperity, without any reservation what- 
ever — from the foundation of the United States Government 
down to the present time, has been under the reign of pro- 
tective principles; and all the hard times suffered by the 
American people in the same period have been preceded 
either by a heavy reduction of duties on imports or by in- 
sufficient protection, thus refuting all fre>-tr«de theories 
on the subject. As I desire my native land to be on the apex 
of prosperity, rather than under the heel of hard times, I 
am a protectionist.— David H. Mason, in the American Econ- 
omist. 



DEPARTMENT OF STATE. 



Work of the Department of S*«te. 1 Kj»7-lf)OS. 

Within the last ten years the United States has assume! far 
greater poAver and significance among the countries of the 
world. There has been a great increase ill the number of oi.r 
people who travel abroad, and an enormous increase m the 
number of people of other countries who are annually coming 
here. Our citizens are going to oilier countries, and are in- 
vesting their money there. In Latin A q erica alone there is 
invested over a billion dollars of American money. Tin: United 
States has today many new and significant points of contact 
with the world that Avere unknown or at least unimportant a 
few years ago. All these changed conditions and closer rela- 
tion.; with other countries and peoples threw upon the De- 
partment of State an enormous amount of work. It is no 
exaggeration to say that the work of that Department today is 
at least eight times as great as it Avas ten years ago. 

Consideration of the series of import ant events in the Orient, 
the open door policy in China, the insistence upon Chinese 
territorial and administrative entity during the Boxer trouble, 
the settlement of the Panama Canal question, the growth in 
the authority and recognition of the Monroe Doctrine after Air. 
Hay became Secretary of State, the expansion of foreign market ? 
for American goods, Secretary Root's efficient support and 
emphatic insistence upon the application 06 the principle 0; 
international arbitration in a practical Avay to disputes between 
nations, the great improvement brought about by him in the 
diplomatic and consular service, and the closer relations between 
the United States and Latin America, will show, in what :iir ■■■- 
tions have been our greatest activities and achievements in the 
Avorld of diplomacy, and what they are likely to be in the imme- 
■ diate future. No period in the history of the nation has been 
richer in diplomatic*triumphs of an important and far-reaching 
character than the last ten years. 

Settlement of Large Claims of American Citizens a.uainsi 
Foreign Governments. 

During the administration of Presidents McKinley and Roose- 
velt there were collected and settled through the Department 
of State and its representatives abroad claims of American citi- 
zens against foreign governments amounting in the aggregate 
to the enormous sum of $27,546,892.23. This record illustrates 
and marks one of the greatest practical achievements of our 
diplomacy. 

Equal in importance with the practical pecuniary triumph 
and of the vast sum of money gained through the medium of 
pacific adjustment for American claimants was fcne greal ga"i} 
in international good feeling due to the settlement of the many 
disputes of long standing growing out of these claims. 

Jlany Important Treaties >!«:li'. 

The record of the Department of State in the matter erf fcri 

making during the last ten years is a noteworthy one. T e 
treaties range in subject from the settlement, of cTaitos 
vate citizens to the control am! const reel ion of the Pa 
(anal and the settlement of the lisheries contr 

Britain, which has extended over nearly a century. 

Among the more important of these compacts bre those pro- 
viding 1 for the extradition of fugitives from justice, the M t 
including conventions with Belgium, Bolivia, Brazil, Chile, Den- 
mark, Great Britain (a supplementary treaty extending the cata- 
logue of extraditable crimes), Guatemala, Mexico (with which 

331 



332 STATE DEPARTMENT— TREATIES MADE. 

power also a supplemental agreement was concluded adding 
bribery to the list of extraditable crimes), Peru, Servia, Switzer- 
land, and the Netherlands. 

This series of treaties, together with the extradition con- 
vention preceding it and with pending negotiations, closes the 
doors of almost all the civilized nations of the world against 
fugitives from justice of the United States. 

Other treaties of marked importance are the peace protocol 
and peace treaty with Spain, of August and December, 1898, 
respectively ; the cession of outlying islands of the Philippines ; 
the real and personal property convention with Great Britain, 
providing for the holding and disposition of real and personal 
property of aliens by will and deed on a liberal basis ; a treaty 
with Guatemala to the same effect ; trade-mark conventions 
with Japan and Guatemala, securing equal protection with that 
afforded native subjects and citizens ; a temporary arrangement 
of the disputed Alaskan boundary question in October, 1899; 
the appointment of a joint commission to consider for settle- 
ment questions at issue between the United States and Great 
Britain respecting Canada ; the adhesion of the United States 
to the additional articles to the Bed Cross contention ; the ar- 
ticles concerning naval warfare — a great humanitarian gain ; 
the adhesion of this Government to the International Conven- 
tion of Brussels of 1899, for the regulation of the importation 
of spirituous liquors into Africa ; the canal protocols of Decem- 
ber 1, 1900, with Costa Pica and Nicaragma, providing a means 
of agreement for the construction and control of an inter- 
oceanic canal by the Nicaragua route. From 1898 to 1900 
reciprocal commercial arrangements were entered into with 
France, Germany, Italy and Portugal, under section 3 of the 
tariff act of Congress of 1897, and in 1899 the United States 
participated in and became a party to the Hague Conventions, 
for arbitration of international disputes, for regulating war on 
land, for regulating maritime warfare, and the declaration to 
prohibit for five years the launching of projectiles and explo- 
sives from balloons, and other new methods of a similar .nature. 

During the past ten years numerous claims of private citi- 
zens have been settled by special negotiations between our own 
Government and those against which the claim was preferred, 
the foreign governments concerned being Guatemala, Haiti, 
Mexico, Nicaragua, Peru, Salvador, Santo ftomingo and Vene- 
zuela, while by the treaty of March 24, 1897, the Chilean Claims 
Convention of August 7, 1892, was revived and additional claims 
adjusted. It is hardly necessary to add that this Government 
bore a most material share in the settlement of the international 
difficulties in China after the Boxer revolutionary movements, 
culminating 'in the final protocol of September 7, 1901. 

It may be noted here that this Government has recently 
given evidence of its friendship for China by legislation which 
authorizes the remission of all punitive damages for the Boxer 
rebellion of 1900 and the reduction of the indemnity bond, given 
by China to the United States after that rebellion, from 
$24,000,000 to $13,000,000. This is also an exhibition of that 
spirit of justice and fair dealing that has characterize d the 
international relations of the United States during the past 
ten years. 

Treaties Negotiated During- the Administration of President 

Roosevelt. 

Among the proclaimed treaties the more important are the 
Hay-Pauncefote treaty (second) of November, 1901, to facilitate 
the building of the Panama Canal ; the canal treaty with the 
Bepublic of Panama ; the Alaskan boundary treaty ; the Pious 
Fund arbitration treaty; the treaty of friendship with- Span ; 
the commercial treaty with China and extradition treaties with 
Belgium, Denmark, Guatemala, Mexico (supxjlementary), and 
Servia ; the series of arbitration treaties ; the treaty for the 
settlement of the Northeastern Fisheries question ; and the 
German and French commercial agreements, by which threatened 
tariff wars were averted by mutual concessions made under the 
authority given to the President in the third section of the Ding- 



STATE DEPARTMENT— TREATIES MADE. 333 

ley Tariff Act. The supplementary extradition treaty with 
Mexico is specially noteworthy as providing for the extradition 
of bribe givers and bribe "takers, the crime of bribery being 
thus added to the existing list of extraditable offenses. . 

The Hay-Pauncefote treaty (of November 18, 1901.) by repeal- 
ing, or rather by superseding, the Clayton-Bulwer treaty (of 
April 19, 1850) cleared the way for direct negotiations for the 
construction of an interoceanic canal. Immediate advantage 
was taken of this fact and the Hay-Herran canal treaty was 
concluded January 22, 1903, but subsequently rejected by 
Colombia. 

The Panama treaty (November 18, 1903) followed, and was 
proclaimed February 25, 1904, assuring the construction of a 
canal. 

The Alaskan boundary convention (January 24, 1903) pro- 
vided a tribunal by which the last important question at issue 
between Great Britain and the United States was satisfactorily 
adjusted almost entirely in accordance with the points claimed 
by our Government, one of the British members of the tribunal 
participating in the decision so largely in accordance with our 
contention. 

The treaty with Mexico for the arbitration of the Pious 
Fund claim is distinguished not only as providing 'for the set- 
tlement of an important question long open, but also as submit- 
ting the first international case to the Permanent Court of 
Arbitration at The Hague. By a later international agreement 
this Government participated in a convention for the submission 
to the same tribunal of the question of preferential treatment 
of recent claims against Venezuela. 

In addition to the commercial treatj^ with Cuba, by which 
preferential benefits are secured to both contracting govern- 
ments, an agreement providing naval and coaling stations for 
ships of the United States has been concluded and proclaimed, 
as well as two others — one respecting the status of the Isle of 
Pines, and the other defining our relations with Cuba. 

The commercial treaty with China contains several very 
important provisions, besides a satisfactory tariff schedule. 
The Likin tax (the collection of a tax on goods in transit with- 
in the Empire) is' abolished ; revision of Chinese mining regula- 
tions is secured ; protection in the use of trade marks and 
ownership of patents is stipulated! a uniform national Chinese 
coinage is projected ; but more important than all, two new 
ports are opened to foreign trade in China, namely, Mukden 
and Antung, in Manchuria, with the result not only of strength- 
ening American policy of the open door, but also that of main- 
taining Chinese jurisdiction in the territory, and tending to the 
integrity of China. 

Three agreements with Spain have been perfected, that of 
July 3, 1902, reestablishing friendly relations and containing 
the provisions general in treaties of friendship — trade, residence, 
property and testamentary rights, diplomatic and consular priv- 
ileges, etc. Another (January to November, 1902), by exchange 
of diplomatic notes, restores the international copyright agree- 
ments; while another, earlier (August to November, 1901), by 
exchange of notes and a joint declaration, facilitates 1 li. 
change of letters rogatory between Porto Eico, the Philippine 
Islands and Spain. 

Other treaties are, a consular convention with Greece (No- 
vember, 1902) ; a trade-mark agreement with Gen cany for 
Morocco; the reciprocal commercial agreement with France 
(August 20, 1902) under section 3 of the existing tariff act; 
treaties for the settlement of claims with Venezuela, the Do- 
minican .Republic, Salvador, and Br.as il ; naturalization with 
Haiti; import. duties and light and harbor dues in Zanzibar; 
treaties with Luxemburg and Kouma :na for the protection of 
trade marks; extradition treaties with Cuba, Panama, Haiti, 
Denmark, Japan. Great Britain, Nicaragua; a copyright treaty 
with Japan ; a treaty with Great Britain for surveying and mark- 
ing the Alaskan Boundary; conventions with Mexico for an 
equitable distribution of the waters of the Rip Grande; con- 
ventions for the amelioration of the wounded in armies in the 



334 STATE DEPARTMENT— INTERNATIONAL PEACE. 

field and for the exemption of hospital ships in time of war from 
payment of harbor dues ; a treaty for the establishment of an 
international Institute of Agriculture at Rome ; treaties of ar- 
bitration with France and other powers. 

Work in the Interest of International Peace. 

Upon the initiative and through the mediation and powerful 
influence of President Roosevelt the Envoys of Russia and Japan 
were brought together on the 5th of August, 1905, on the neutral 
and friendly territory of the United States and the war between 
the two nations — the greatest war of modern times — was 
brought to an end by the treaty of peace signed at Portsmouth 
on the 5th of September, 1905. 

When the dispute between Germany and France regarding 
the right of control in Morocco threatened to involve all Europe 
in war, and a conference was called at Algeciras on Jauuary 16, 
1906, to consider the various questions, the active influence which 
its own disinterested position enabled the United States to exer- 
cise, both directly and through its representative at the con- 
ference, played a great part in bringing about the peaceful 
solution reached on April 7, 1906, after a session of three months. 
The German Minister for Foreign Affairs testified in the Reich- 
stag to the work of the representative of the United States at 
that conference in the following words : 

"I wish to avail myself of this opportunity to declare that we have 
reason to be grateful to America for its attitude at the conference. * * 
It maintained its neutral position throughout, but its distinguished and 
highly respected representative, Mr. AVhite, omitted .no opportunity to 
remove difficulties and to aid toward an agreement which should be 
satisfying to all the parties in interest. That was a great service which 
America rendered to the peace of the world, because the failure of the 
conference of Algeciras would not only have broken the relations between 
Germany and France, but would have disturbed the general political situa- 
tion of the world. * * * This was the second great service which 
America rendered to the peace of the world, the first being the reestablish- 
ment of peace between Japan and Russia." 

The United States and Mexico have been cooperating to 
bring- about better conditions which would put an end to all 
discord and restore peace and prosperity in Central America. At 
the instance of the United States and Mexico a Peace Con- 
ference of all the five Central American countries was held 
in Washington in November and December, 1907, and at this 
conference, which was attended by representatives of the United 
States and Mexico, a series of treaties was made of the greatest 
practical importance, among- them being a treaty which provided 
for a permanent international court for the trial and decision 
of all questions whatever arising between Central American 
countries, ^this court has just been inaugurated in Costa Rica. 
A long step has been taken in the direction of prosperity and 
peace in Central America and the United States has won the 
gratitude which is freely expressed by the good and peaceful 
citizens of all those countries. 



International Arbitration. 

The administrations of McKinley and Roosevelt have been 
distinguished by the efforts put forth to promote peace ainong 
the nations and alleviate the evils of war. 

President McKinley was active in seeking to have incorpora- 
ted into international law the principle so long advocated by 
our country of the exemption of private propert/v on the sea 
from seizure during war, a measure so greatly desired in the 
interest of maritime commerce. He instructed our delegates to 
the Hague Peace Conference in 1899 to urge this principle, and 
when the conference decided that it had no jurisdiction over the 
subject he asked Congress to authorize him to bring about an 
international conference for the consideration of this subject 
and President Roosevelt has renewed the recommendation to 
Congress. 

The United States was among the first of the Powers to re- 
spond favorably to the request of the Emperor of Russia in 1898 
for a peace conference. One of the few practical results of that 
conference was the arbitration convention, which was brought 



STATE DEPARTMENT— INTERNATIONAL PEACE. 336 

about mainly by the efforts of the American delegates. Presi- 
dent McKinley had the honor of sending- to the Permanent Ar- 
bitration Court established by that convention the first case 
ever submitted to it. 

A notable opportunity was presented to President Roosevelt 
in 1903 to show his faith in international arbitration and in 
the efficacy of The Hague court. He was called upon by Great 
Britain, France, and Italy to arbitrate their differences with 
Venezuela, a distinguished marie of confidence in his ability and 
impartiality. But he declined the. honor and referred the war- 
ring powers to the Permanent Arbitration Tribunal as the proper 
place to adjust their controversy. 

The delegates of the United States to the Pan-American Con- 
ference of the American Republics, which met in the City of 
Mexico in 1901-2, were prominent in the adoption of a number 
of conventions and agreements for the better regulation of the 
commerce and intercourse of the American states, and among 
these was a convention for the settlement by arbitration of 
claims not susceptible of diplomatic arrangement. 

But while President Roosevelt has committed himself so 
heartily to international arbitration, he recognizes that there 
are some political questions which ma}* not be proper to submit 
to such an adjustment. The Alaskan boundary had in recent 
years become a matter of serious controversy, and stood as an 
obstacle to the maintenance of peaceful relations with Canada. 
In view of our long and undisputed occupation of the territory 
in question the President declined to allow the reference of 
the controversy to The Hague court, but instead he proposed 
the creation of a judicial tribunal of an equal number of mem- 
bers from each country, feeling confident that our claim would 
be established by such a body. Against much opposition and 
prediction of failure such a tribunal was created, and its de- 
cision has happily confirmed the wisdom of the President's 
action, peacefully settled this irritating controversj', and re- 
stored good relations with our northern neighbors. It has 
proved one of the most notable diplomatic triumphs of our 
Government. 

With the active participation of the delegates of the United 
States, the Second International Peace Conference at The Hague 
in the summer of 1907 entered into agreements which consti- 
tute one of the greatest advances ever made towards the rea- 
sonable and peaceable regulation of international -conduct. 
Twelve treaties agreed upon at that Conference, all designed 
for reducing the probability or mitigating the horrors of war, 
have been approved by the Senate and ratified by the President 
of the United States. Important among these treaties was the 
agreement proposed and urged upon the Conference by the 
United States, under which all the civilized powers agree not to 
use force for the collection of contract debts claimed by their 
citizens against other countries, so long- as the alleged debtor 
seeks the protection of arbitration as to the justice and the 
amount of the debt or time and mode in which it ought to be 
paid. 

Following the action of The Hague Convention in providing 
greater facilities for the use of the Permanent Court of Arbi- 
tration ait The Hague, the United States has concluded general 
treaties of arbitration with England, France, Spain, Portugal, 
the Netherlands. Denmark-, Sweden. Norway, Switzerland, Italy, 
Mexico, and Japan, while miuiy other similar treaties are in 
course of negotiation. Under the general treaty with Great 
Britain the two countries have agreed to arbitrate bef< re The. 
Hague Tribunal the difficult and vexatious qu stions which for 
more than, a century have caused do mi eh ill-will and controversy 
regarding the rights of our fishermen in ffhe fisheries on the 
coasts of Newfoundland and bhe maritime Provinces of Canada. 

Negotiations for fche settlement "i' t\^■> various controversies 
with Canada have been undertaken an.! gTeal proj rwss toward 
the complete settlemenl of bhe controversies has been made. 
The Surveyors appointed by the two cortntries have nearly com- 
pleted the marking of the boundary bi Alaska lance 
with the decision of the Tribunal of 1903, n new treaty h*ls been 
made for the adjustment of all other questions relating- ^to th« 



386 STATE DEPARTMENT— INTERNATIONAL PEACE. 

determination of the boundary from the Atlantic to the Pacific, 
the Northeastern fisheries question is about to be disposed of 
by an agreement for arbitration under the general treaty, a 
new treaty has been made for the making and enforcement of 
joint regulations for the preservation of the food-fish supply 
in all the boundary waters, including both the Great Lakes 
and the Atlantic and Pacific waters, and a treaty has been made 
giving reciprocal rights for the conveyance of prisoners across 
each other's territory and the rights of wrecking and salvage 
in each other's waters. 

The questions between Japan and the United States which 
caused so much public excitement in 1907 have been disposed 
of to the satisfaction of the people of both countries. The San 
Francisco school question has been settled pursuant to an 
understanding with the San Francisco School Board; the im- 
migration of Japanese laborers is being regulated by the con- 
current action of the President, under authority conferred upon 
him for that purpose by the Congress, and of the Japanese 
Government. The friendship and sympathy between the two 
Governments have now been signalized by the general treaty 
of arbitration concluded between them; by treaties for the pro- 
tection of copyrights and trade-marks in China and Korea ; by 
the invitation and acceptance of the invitation for the visit 
of our fleet to Tokyo and by the response of the United States 
to the invitation of Japan to participate in the great exposition 
which is to be held at Tokyo in 1912, for which Congress has 
authorized the expenditure of one million and a half of dollars, 
the greatest sum ever appropriated for a foreign exposition. 

The United States has secured the assent of all the nations 
having possessions in the Orient to a united effort with China 
to put an end to the curse of opium in the Orient and an in- 
ternational conference under the leadership of the United States 
has been agreed upon to meet at Shanghai on the first of next 
January for the purpose of devising and, formulating an inter- 
national agreement to prevent the production, sale, and use of 
opium. 

Visit of the Secretary of State to South America and Mexico. 

In August, 1906, the participation of the United States in 
the Pan-American Conference at Eio de Janeiro and the visit 
of Secretary Root to that Conference and to all the principal 
maritime countries of South America put an end to the sus- 
picion and distrust with which the growing power of the United 
States was regarded by the Latin-American races, and began a 
new era of friendship and sympathy between all the American 
Republics. This has been followed and added to by the Secre- 
tary's visit to Mexico as the guest of the Mexican Republic of 
October, 1907, and by the visit of the American fleet to the 
chief maritime republics of South America, and by the enlarged 
and great development of the work of the International Bureau 
of the American Rex>ublics for the dissemination of knowledge 
and the cultivation of trade and friendly relations between the 
different American countries, for which all the Republics are 
uniting in the construction of a splendid building in the City 
of Washington. 

Restoration of Peace in Santo Domingo and in Cuba. 

For many years Santo Domingo has been the scene of a 
series of revolutions which devastated the country, crushed out 
all progress, and left the Treasury in utter bankruptcy, with a 
host of insistent creditors, both foreign and domestic. In the 
face of imminent likelihood of another revolution and foreign 
intervention a treaty was concluded between the United States 
and Santo Domingo, with the approval of the United States 
Senate, under which, by the appointment of an American agent 
to collect Dominican customs revenues and apply the surpb s 
toward the payment of the Dominican debts, complete peace has 
been maintained for four years past, the commerce and in- 
dustry of the island have revived, the revenues have doubled and 
the nominal indebtedness of over $40,000,000 has been adjusted 



STATE DEPARTMENT— CONSULAR SERVICE. 337 

and settled at less than $20,000,000, for which interest a: d sink- 
ing- fund payments are completely 'assured by the revenues result- 
ing from the new prosperity. The republic's credit has been 
established on a higher plane, works of internal improvement 
undertaken, and civil quiet and adequate revenues for the main- 
tenance of the government assured and danger of foreign in- 
tervention removed. 

In the summer of 1906, an impending civil war in Cuba led 
to the intervention of the United States under the wisely de- 
vised terms of the Cuban Constitution and American statutes 
which regulated the relations between the two countries. The 
opposing forces were induced to lay down their arms and re- 
turn to their homes, all differences having been adjusted, a new 
census of the island has been taken and on the basis of that 
census new and fair elections are being beld for the recon-- 
stitution of a Cuban Government; and the control of the island 
is to be restored by the United States to the real choice of the 
Cuban people during the coming winter. 

Tlie Consular Service. 

Among the many notable achievements of the administration 
of President Roosevelt few have been of more importance to the 
individual American than the reorganization of the consular 
service and placing it upon an efficient basis. 

The consular officers of no other government have such varied 
and important duties to perform as have the consular officers 
of the United States. Of these duties perhaps none are so 
important as those relating to the protection of American citi- 
zens and their interests abroad. Our consuls have displayed un- 
usual ability in discharging these duties. American citizens 
arrested or subjected to annoyance in foreign countries have, 
with rare exceptions, found the American consuls energetic and 
successful in their behalf. In China, Central and South America 
the consular officers have been called upon to perform delicate 
and trying duties of a diplomatic character and have discharged 
those duties with rare tact and ability. They have cared for 
and sent home the bodies of Americans who have died abroad 
and have collected and forwarded to legal representatives in 
this country the property of deceased American citizens in 
foreign countries. 

But perhaps the most significant and valuable work, in a 
money sense, that has been achieved by the consuls has been in 
the way of detecting and preventing attempts to defraud the 
customs. In their investigations of values of merchandise ex 
ported to the United States our consuls have shown wonderful 
skill and industry, and their work in the direction of prevent- 
ing exporters to the United States from undervaluing their 
merchandise has resulted in vast increases in the cast ins dues 
collected. An approximate idea of the value of this work of 
our consuls may be formed when it is recalled that the work of 
one consular officer alone has increased receipts from customs 
about one million dollars a year since 1898, a total of six 
million dollars in six years. There are 330 consular officers who 
are carrying on the same kind of work. They are for the most 
part equally energetic and efficient, and it is estimated that fully 
ten million dollars have been saved to the revenues of 1 he 
United States by the active, intelligent and persistent efforts of 
our consuls abroad. It is safe to say that this I ranch of our 
service alone has saved about ten times it^ t til eosl to the 
Government. 

By means of a series of carefully planned instructions the 
department has secured a degree of cooper.it : ou mi the part 
of consuls with Treasury officials that hus hitherto l ecu un- 
attained. 

The consuls have rendered a great deal of varied aid im- 
portant service to other departments of the Government than 
the Treasury. Acting under recent instr etions our onsular 
officers have been of great assistance t > the Navy Department 
in the apprehension of deserters and st ra '--Hers from war ves- 
sels and colliers and are in constant communication wit'' men- 
of-war in local waters, supplying them with much valuable 
information. 



338 STATE DEPARTMENT— CONSULAR SERVICE. 

During the war with Spain they rendered invaluable serv- 
ice to the Government of the United States. They formed a 
series of intelligent observers throughout the world and the 
information and reports gathered by them were often of the 
highest value and importance to those directing our military 
and naval operations. 

At the instance of the Secretaiw of Agriculture and in pur- 
suance of the pure food law of March 3, 1903, the Department 
of State issued instructions to consuls, requiring prompt re- 
ports of the shipment of food products to this country. The 
character of these reports and the promptness of their trans- 
mission to the Bureau of Chemistry of the Department of Agri- 
culture have been most gratifying and have to a great degree 
made possible an intelligent and successful enforcement of the 
law. 

In their work in behalf of our export trade consular officers 
have shown themselves very efficient. In the introduction to 
the review of the world's commerce for 1902, it was stated by 
the chief of the Bureau of Foreign Commerce of the Depart- 
ment of State, that : 

"whatever may be the defects of our consular seryice it is at least show- 
ing itself to be generally alert and responsive to the new conditions. 
* * * The consuls have also been most active in sending reports at 
frequent intervals on a great variety of subjects of interest to the indus- 
trial and commercial world, * * * A most gratifying evidence of 
the increasing value of the Consular Reports * * * is found in the 
widespread demand for them on the part of colleges and schools as ref- 
erence books in special courses of commercial instruction. * * * In 
addition to the published reports, the consuls of late, by means of cor- 
respondence conducted under the supervision of the Department of State, 
have supplied a great mass of information to trade bodies and business 
firms, and in many cases have voluntarily exerted themselves in other 
ways to promote commercial expansion. Their efforts frequently elicit 
warm commendation in letters to the Department from the trade interests 
thus benefited, and even when a consular officer lacks other qualifications, 
it seldom happens that he fails to exhibit the characteristic American 
spirit in 'hustling' for business, not for himself, but for his country." 

The activity of the consuls has been greatly stimulated by 
the prompter publication and wider distribution of their re- 
ports. In December, 1897, the department, discarding traditions, 
began the daily publication of such reports as were of current 
interest. The result has far exceeded all expectations and has 
marked a new era in the practical utilization of consular in- 
formation. Our business men have been warm in their praises 
for it. One firm wrote the department, "attribute our having 
nearly doubled our foreign trade during the last three years 
in great degree to the light we obtained from careful perusal 
of these reports." A manufacturing firm said respecting the 
assistance derived from the reports, "the result is to-day from 
30 per cent to 35 per cent of our entire product in certain lines 
of hardware we export." 

That this method of distributing commercial information is 
of great practical value is also shown by the fact that it was 
promptly imitated in part by both Great Britain and Germany. 

Undoubtedly a large part of our commercial progress in re- 
cent years is due to the keen business instinct and activity of 
our consular officers in pointing the way to new markets, and 
to a great degree is due to them the credit for the enormous in- 
crease of our exports from $886,606,938 in 1896 to $1,880,851,078 
in 1907 — over $994,000,000 in eleven years. 

The consular fees collected have increased steadily, amount- 
ing for the fiscal year ended June 30, 1906. to $l',672,802.*15. 
The expenditures for the consular service for the j ear amounted 
to $1,177,635.72, making the net cost of the service only 
$104,833.57. 

With a view to the improvement of the consular service a 
law was passed by Congress and approved by the President on 
April 5, 1906, abolishing unofficial fees, providing all consuls 
with fixed salary, requiring the appointment of Americans to 
the more important subordinate positions, and creating a corps 
of inspectors to inspect each consulate every # two years. On 
June 27, 1906, President Poosevelt issued regulations, in ac- 
cordance with the laws enacted by Congress, by which the prin- 
ciples of civil service reform have been extended to the con- 
sular service by limiting original appointments to the two 



STATE DEPARTMENT— CONSULAR SERVICE. 339 

lowest grades of the service after examination by a board of 
which the Chief Examiner of the Civil Service Commission is a 
member; requiring all the higher posts to be filled by promotion 
of men from the lower grades on the basis of efficiency alone; 
and requiring appointments to be made so as to secure pro- 
portional representation of all the States and Territorie 
the service. Young men of high attainments and excellent char- 
acter are being appointed to the lower ranks of the service, 
offices are being maintained on a better scale, and in every way 
the organization has been vastly improved. 

Our consulates are on the whole in excellent condition, both 
as regards the general character of the consuls and their wojrk 
and their manner of performing it, and it may justly be said 
that we have reason to congratulate ourselves upon the per- 
sonnel and efficiency of the consular service. The consular 
corps, which suffered great demoralization during the period 
from 1893 to 1897, owing to the violent, ill-judged, and wholesale 
removals, has been brought to its present state of manifold 
usefulness, cleanness, and high efficiency during the last ten 
years. Taken as a whole, it is composed of a higher and better 
type of men than it has ever before been able to enlist, and it 
is doing much better and more intelligent work. A few years 
ago our consular service would hardly have challenged the emu- 
lation of other countries. To-day it is regarded by the best 
authorities abroad as the most efficient organization of its kind 
in the world for increasing the sale of goods, for stimulating 
home industry and enterprise, and for informing exporters a:> 
to trade conditions in every important market of the globe. 

Throughout the recent consular reform movement in 
England the American consular service was constantly held 
up as a model of what the British service should be. An 
English trade journal said : "The United States is ahead of the 
world in regard to quick consular reports." An eminent Ger- 
man authority on consular matters recently referred to United 
States consular officers as "inspectors of our exports, and 
vigila,nt sentinels who spy out every trade opening or advantage 
and promptly report on it." They "dive into the economic con- 
dition of their districts and obtain information the result of 
which is discernible in the steadily increasing exportations of 
Their home country. * * * The United States consular 
officers give their Government better service and better in- 
formation than any on earth." 

Improvements have also been made in the selection of young 
men for the diplomatic service by requiring them to demon- 
strate their fitness • before a board of examiners. The princi- 
ple of promotion for efficiency and merit has been consistently 
applied in the diplomatic, service. 



The Americaii system of locating maim factories next to 

he plow and tlie pasture has produced a resnlt noticeable 

by the intelligent portion of all commercial nations. — Grant. 

If we have good wages, they are better by being paid in 
good dollars, and if we have poor wages they are made 
poorer by being paid in poor dollars. — Maj. McKinley to dele- 
gation of workingmen, at Canton, 1S9G. 

We have established in the islands a government by 
Americans assisted l>y Filipinos. We are steadily striving 
to transform this into self-government by the Filipinos as- 
sisted by Americans.— President Roosevelt's speech accept- 
ing 1904 nomination. 

We are the trustees and guardians of the whole Filipino 
people, and peculiarly of the ignorant masses, and our trust 
Is not discharged nntil those masses are given education 
sufficient to know their civil rights and maintain them 
against a more powerful class and safely to exercise the 
political franchise. — Hon. Win. H. Taft, in special report to 
the President. 

\o sophistries or subtleties can make monej or crea 
currency which Is good for one and which Is not equally 
good for the other. The interests of labor and capital are 
always identical. — Hon. C W. Fairbanks, in I. B. Senate. 
March 5, 1000. 



DEPARTMENT OF JUSTICE. 



The Work of the Department of Justice. 

The effort of that portion of the administration of President 
Roosevelt which is under the jurisdiction of the Department 
of Justice has been to determine by careful and painstaking 
investigation whether the many complaints which have been 
made of the violations of Federal law were well founded, and 
to present such violations as were found to actually exist to the 
Federal courts so that exact justice might be done ; that no 
violator of the Federal statutes might escape due punishment ; 
but at the same time that frivolous and unfounded prosecutions 
might be avoided and that the machinery of the Federal power 
might not be used to further the end of private litigants. The 
success of certain proceedings against persons and corporations 
for acts in restraint of trade forbidden by the Sherman Act, 
so-called, naturally led to appeals to -the Department of Justice 
for Federal procedure in a very large number of cases, ansl the 
work of the Department of Justice has been as largely in deter- 
mining which of such complaints indicated actual violations of 
the law as in prosecuting offenses found to have been com- 
mitted. There has been a uniform application of the rule that 
proceedings should only be brought when some public interest 
was involved or some public benefit to be secured. The Depart- 
ment has been careful to see that no litigation has received its 
sanction, or been participated in by the Government, in which 
the foregoing was not the fact, and has been interested only in 
an impartial and vigorous prosecution of this law and other 
Federal statutes. 

Prosecutions Under Sherman Act and Interstate Commerce 

Laws. 

It has been the duty of the Department of Justice to defend 
the soundness of the position taken by it in matters relating 
to prosecutions under the Sherman Anti-Trust Act, so-called, 
and also under the Interstate Commerce Act, by carrying pro- 
ceedings thus inaugurated through the various courts and to a 
final determination in the Supreme Court of the United States. 
It has been the constant endeavor of the Department to have the 
material questions involved settled as soon as practicable, and 
to this end it has moved to advance cases, and has been insist- 
ent upon the prosecution of the various appeals and interme- 
diate steps involved. The result has been a definition by the 
Supreme Court of many aspects of the Sherman Law, and a 
series of decisions under which further proceedings in enforce- 
ment of this law can be taken with reasonable hope of success ; 
the facts in each case being determined by a thorough, and fre- 
quently expensive, examination by the Department of Justice. 

The Details of the Work of the Department of Justice in the 
Enforcement of Law with Reference to Corporations will oe 
Found Under the Chapter Entitled "Regulation of Corpor- 
ations. 

Enforcement of the Naturalization Act. 

Among the several recent salutary Federal enactments stand- 
ing to the credit of the Republican administration of national 
affairs is the Naturalization Act, which went into effect Junft 
20, 1906. The terms of this Act provide for representation of the 
United States at hearings held for the purpose of determining 
the suitability of aliens for admission to American citizenship. 
The duty of representing the United States in this important 
function devolves upon the Department of Justice, and, as a mere 

340 



DEPARTMENT OF J VST ICE. 841 

pro forma appearance without knowledge of the facts in each 
case, except as the3 r appeared in court, would be of little value, 
a system of examination has been developed under the Depart- 
ment of Justice b} r which every application for naturalization 
is effectively scrutinized. The great boon of American citizenship 
should not. it is agreed, be conferred except upon those who are 
worthy of the privileges it bestows and who can make an ade- 
quate return in the character and quality of their acts as citi- 
zens, for the confidence which they have enjoyed. It is recog- 
nized that the best cure for undesirable citizens is to apply such 
tests as will develop the fact of their undesirability before they 
have been added to the voting strength of the country. In their 
examination of the claims of aliens for citizenship, the officials 
of the Department of Justice have not only been able to secure 
the rejection of the applications of undesirable persons, but 
they have been able to assist in the naturalization of aliens 
whose addition to the body politic is desirable, and they have 
also been able to secure the cancellation of certificates of nat- 
uralization formerly obtained by aliens before the present law 
went into effect. Too high an estimate cannot be put upon the 
value of a careful scrutiny and examination of applications for 
naturalization. Many of the ills which threaten the political, 
social and economic -affairs of the United States at the present 
time may. in all probability, be checked by the denial of citizen- 
ship to those who, from ignorance, imperfect training or per- 
verted views, are likely to become additions to ignorant, venal, 
or vicious classes of voters constituting a constant temptation to 
undesirable political methods from the fact that they cannot be 
sw r ayed by those considerations and arguments which are suc- 
cessful'y addressed to the reason of the thousands of naturalized 
oitizens now fully in accord and sympathy with the aims and 
objects of the Government of the United States. To these the 
new naturalization law and the w T ork of the Department of 
Justice as a means of assistance in securing- American citizen- 
ship are guaranties that such citizenship, once attained, will 
not be cheaj)ene^. and depreciated by a too easy access under 
unfair, unequal, and inequitable conditions. 

Ended th.e Lottery Swindles. 

The Administration of President Roosevelt has seen the final 
destruction of the lotteries which had for years been, in the 
opinion of the large majority of the people of the United States, 
a great national evil. Although legislation was passed in 1895 
intended to eradicate this immorality, by reason of delays in- 
cident to litigation and to various evasions, on the part of those 
interested in the lottery business, the Government was not able 
until 1903 to put effective measures into operation for the ter- 
mination of the illegal transactions involved. In 1903 a fav- 
orable decision was secured from the Supreme Court and until 
1907. one device after another was disclosed by the active in- 
vestigations of the Secret Service, and terminated by prompt and 
vigorous prosecutions by the Department of Justice, until, in 
May of the year last mentioned, complete cases were made 
against the officers of the Honduras National Lottery Company. 
the successor of the Louisiana State Lottery Company. m The 
interests involved, for the first time, acknowledged their defeat, 
and without contesting the cases, pleaded guilty, paid fines ag- 
gregating $264,700, and agreed to go out ef business and sur- 
render all of the paraphernalia of the Company to the Govern- 
ment for destruction. This was the company which had been 
doing the very large proportion of the lottery business in the 
country, and which had been able, by various secret devices 
continue in business, although at a constantly inere pense 

and risk. The result of this successful prosecution terminated 
the last of the lottery operations, which had a widespread field. 
and the warfare of the administration has ended in a complete 
victory over the chief organization conducting such a busi 
an organization which at one time deemed itself almost im- 
pregnable on aocount of the resources and influence of the per- 
sona interested. 



342 . DEPARTMENT OF JUSTICE. 

Enforcement of ilie Lund Laws. 

The vigorous and impartial enforcement of the land laws of 
the United States which lias marked the present Administration 
has been, and is being-, carried on without cessation, and every 
means at the disposition of the Government is being- utilized to 
recover lands fraudulently obtained from the United States. As 
a result of the proceedings so far completed, $502,736.92 has 
been recovered in judgments, $57,587.37 in fines, and 1,177,836 
acres of land have been returned to the public domain, while the 
amounts in lands and money involved in proceedings now pend- 
ing will far exceed the figures above given. In four cases in 
Colorado demurrers as to indictments were sustained by the 
-lower court and appeals from this decision will be taken to the 
Supreme Court under a law passed by a Republican Congress 
giving the United States a privilege not previously possessed 
by it of taking appeals in criminal cases on points of law. While 
the tendency of these appeals has the result of temporarily post- 
poning the trial of criminal proceedings in some cases, active 
litigation is being carried on wherever civil suits are deemed to 
be desirable to recover lands alleged to have been fraudulently 
secured from the United States. Safeguards to the acquirement 
of the public lands have been increased, so that adequate returns 
are being secured and will be secured hereafter from all those 
who acquire public lands from the United States. 

During the past two years, the Department of Justice has 
been engaged in the active investigation of the rights and re- 
sponsibilities of the holders of the titles of lands involved in 
certain railroad land grants in the Northwestern States. The 
Oregon and California Railroad Company, among others, was 
granted certain tracts of land in aid of its railroad under con- 
ditions that it should sell the land thus granted to bona fide 
settlers in tracts of not more than 160 acres at a price not to 
exceed $2.50 an acre. Complaints were made to the Department 
that the Company had refused to sell a certain portion of this 
land according to the terms of the grant, and that it had sold 
other portions in larger tracts and for greater sums than above 
named. In order to properly test the rights of the Government 
and the duties of the holders of the lands it became ^necessary 
to secure from the Congress certain additional legislation which 
was promptly passed by virtue of the Republican majority in 
both Houses and ample authority given the Attorney General for 
a thorough test of the many difficult questions involved. At the 
same time, it is proposed that these proceedings shall be con- 
ducted so that there shall be no serious disturbance of commer- 
cial and industrial conditions within the States in which these 
lands lie. 

Px'oceetling's Against Peonage. 

Commercial g-reed is not localized, but it may be noted that in 
certain States which have been dominated by political tenets 
opposed to the doctrines of the Republican yjarty, a peculiarly 
obnoxious form of this vice has been stimulated^ by legislation. 
In the solid South, so-ca.lled, it has been possible, by reason of 
State statutes on the subject of personal debts, to hold large 
numbers of people to enforced labor with the result, as shown 
by developments in courts of justice, that men, women, and chil- 
dren have been reduced to and kept in that condition of slavery 
known as peonage, a condition involving evils as great as those 
involved in chattel slavery, even though the characteristics of 
the two forms of bondage are not identical. The slavery which 
has been found to exist is not confined to persons of the negro 
race, but has included a large number of white persons, many of 
whom are alleged to have been decoyed into the localities where 
peonage was practiced by false |3romises and representations. 
Under sections 5525 and 5526 of the Revised Statutes, constitut- 
ing holding in slavery or peonage an offense against the laws of 
the United States, and in consequence of the numerous com- 
plaints received, the Department of .Instice has, during the pre- 
sent administration, undertaken a thorough investigation of the 
conditions obtaining in various forms of labor and industry in 
remote portions of certain Southern States, with the result that, 



DEPARTMENT OF JUSTICE. 343 

as a consequence of the agitation produced, and the prosecutions 
sustained in the Federal courts, this evil has been substantially 
checked and a healthful public opinion created in the direction 
of the repeal of the laws under which peonage became possible. 
In connection with the investigations into the facts surround- 
ing conditions of peonage, it has been developed that this offense 
against the Federal laws has gone hand in hand with violations 
of the contract labor laws, and that a systematic importation of 
aliens had found its outlet in the utilization of labor thus im- 
ported under conditions which resulted in the forcible restric- 
tion of aliens within labor camps and charges against them of 
indebtedness for current support which, added to the cost of their 
passage to this county, made a sum total which it was almost 
hopeless that they should discharge. While it is true that it 
has not been possible to obtain convictions on some of the in- 
dictments which have been secured, this failure has been, iq 
large part, due to local influences and circumstances and the 
result of the convictions which have been obtained was a whole- 
sale release of persons who had been held to involuntary servi- 
tude under the plea of requiring them to pay their debts, such 
debts, it must be remembered, being frequently made up of 
exorbitant and unjust charges. This method of securing labor 
has been effectively restricted, if not wholly suppressed, by the 
activity of the Administration, and the investigations and efforts 
to punish those involved in these infractions of the Federal laws 
are being continued and will be continued by the present Ad- 
ministration. 



The national credit is of too paramount importance am! 
nothing: should he done to tarnish or impair it.— Hon W. Mc- 
Kiniey, in House of Representatives, April 15, 187S. 

I am President of all the people of the United States, 
without regard to creed, color, Birthplace, occupation, or 
social condition. My aim is to do equal and exact justice 
as among: them all. — President Roosevelt, in a statement to 
executive council American Federation of Labor, Sept. 20, 
1903. 

A railroad company engaged in interstate commerce 
should not he permitted, therefore, to issue stock or bonds 
and put them on sale in the market except after a certificate 
by the interstate commerce commission that the securities 
are issued with the approval of the commission for a legiti- 
mate railroad purpose.— Hon. Wm. H. Taft. at Columbus, Ohio. 

Passed at the instance of Mr. Roosevelt, it (the Rate law) 
stands as a monument to the principle which he has in- 
cessantly maintained" in speech and action, that the laws 
mast be so made that they can be enforced as well against 
the sins of the wealthy and the powerful as against those 
of the poor.— Hon. Wm. H. Taft, at Columbus, Ohio. 

Mr. Bryan asks me what I would do with the trusts. I 
answer that I would restrain unlawful trusts with ail the 
efficiency of injunctive process and would punish with all 
the severity of criminal prosecution every attempt on the 
part of aggregated capital through the illegal means I have 
described to suppress competition.— Hon. Wm. H. Taft. at 
Columbus, Ohio. 

You must face the fact that only harm will come from a 
proposition to attack the so-called trusts in a vindictive 
spirit bv measures conceived solely with a desire of hurting 
them, without regard as to whether or not discrimination 
should be made between the good and evil In them, and 
without even any regard as to whether a necessary sequence 
of the action would be the liurtii^p of other interests.— Presi- 
dent Roosevelt at Cincinnati, Sept. 20, 1002. 

Everv one who knows anything about the management of 
railroad's knows that there has been a revolution In respect to 
their obedience to the law. No longer are special privileges 
granted to the few-no longer are secret rebates extended to 
build up the monopoly of the trusts. The rn 11 roads are oper- 
ating within the law. and the railroad directors and officer! 
and stockholders ought to rise up and call blessed the men 
who are responsible for the passage of the Kate bill.— 
Hon. Wm. H. Taft, at Kansas City, Mo. 

It would be hard to tind in modern times a better example 
of successful constructive statesmanship than the Vmerlenn 
representatives have given to the Philippine Islands. — Presi- 
dent Roosevelt at Providence, R. I., August 2:*», L902. 



-T*^ 



THE WAR DEPARTMENT. 



ITS EFFICIENT AND ECONOMICAL ADMINISTRATION. 

Splendid Record of the Army as Military and Civil Public 
Servants, Pioneers, and Humanitarians. 

The events of the past decade have brought the War De- 
partment into great prominence. The war with Spain and 
conditions growing out of it enormously enlarged the duties 
of this Department, thrusting new and unusual responsibilities 
upon it and widening the field of its operation until it now 
extends more than half-way around the world — from Cuba and 
Porto Kico off our Atlantic seaboard to the Philippine Islands 
on the other side of the globe, 8,000 miles from our Pacific 
coast. 

The work of the War Department throughout all this history- 
making period has been tremendous in mass, varied and excep- 
tional in character. The armies of the United States from Valley 
Forge to Santiago have been the bulwark of the nation, and 
their historic deeds are cherished with pride by every Ameri- 
can heart. In the winning of the great West the army bore a 
memorable and indispensable part. By its achievements in the 
Philippines, in Cuba and in Porto Kico, where it served first as 
soldiers and afterwards as civil administrators, it has added a 
briliiant and unique chapter to our annals. How the duties and 
responsibilities of this trying epoch have been met and discharged 
by the War Department and the Army, what splendid work our 
soldiers have done for humanity and the flag, and what im- 
provements have been made in the military service to strengthen 
the country's defenses and its preparedness for war, it is the 
purpose of this chapter briefly to describe. 

The War with. Spain. 

Just prior to the outbreak of the Spanish War the strength of 
the regular army was about 2G,040 enlisted men and 2,143 
officers. Under the President's first and second calls for troops 
in April and May, 1898, the strength of the army, including 
regulars and volunteers, was quickly increased to 11,108 officers 
and 263,609 enlisted men. Meanwhile, before it moved as an 
army, the war with Spain had practically been ended with an in- 
vading army or expeditionary force of less than seventeen thou 
sand officers and men, who had become master of the Island of 
Cuba, though* there were stationed on the island at that time 
80,000 veteran Spanish soldiers, who, according to the prin 
ciple of the survival of the fittest, were regarded as the hard- 
ened remnants of the army of 210,000 men which Spain had 
sent in the attempt to dominate Cuba. 

Difficult Tasks Following tlie War with Spain. 

The war with Spain ended, the next three years under 
President McKinley were marked by the most extraordinary 
conditions involving careful and arduous administration of 
the War Department. Instantly, without preparation, design, 
or desire the United States as a conquering nation had become 
suddenly saddled with the duty of governing three different 
sections of foreign countries, disconnectedly situated in two 
hemispheres, and which, by reason of their different peoples 
and varying traditions and customs, presented political prob- 
lems and complications unparalleled in the history of the world. 

In meeting this emergency the President found himself 
charged not only with the constitutional powers of the execu- 
tive, but charged also by the peculiar nature of the newly de- 
veloped conditions with the obligations of all three of the 
usually divided dirties of state — the legislative and judicial in 
addition to the executive. His Secretary of War had then 

344 






' 



WAR DEPARTMENT. £4* 

necessarily to be a man capable of acting for him in the im- 
mediate supervision of all military affairs, for in the begin- 
ning- of the government of the newly acquired territory the 
War Secretary was not only required to frame and prescribe 
the laws, but was called upon likewise to interpret and enforce 
them. ^ 

In the beginning of the new and anomalous conditions that 
prevailed, the Secretary of War was virtually the framer of 
three separate governments for three different alien people, a 
task so well accomplished that in a little more than three 
years the Cubans were enabled t© hoist their own flag as a 
separate and independent nation, while the Porto Ricans and 
the Filipinos . were quickly permitted to enjoy civil forms of 
government with only a mere fractional element of military 
control, without the cost of a dollar to the United States 
Treasury except for the money paid in salaries to Federal 
officers. 

The Work in the Philippines. 

After the close of hostilities with Spain it became neces- 
sary to deal with the insurrection in the Philippine Islands, 
which continued with unvarying success on the part of the 
United States troops until the Filipino insurgents dwindled 
into mere bands of guerillas, who finally gave up their arms 
and surrendered when, on March 21, 1981, Aguinaldo was cap- 
tured. 

There is no prouder or more honorable page in the history 
of our army than that covering the period of its suppression 
of the Filipino insurrection. Although the campaign against 
the organized Filipino troops was swift and short, lasting only 
about a year, the gaierilla warfare that ensued carried on by 
the various bodies of insurrectos of the different parts of the 
islands, covering an extensive area of operations, required a 
degree of zeal and labor on the part of our army seldom, if 
ever before, experienced by any military troops in the civil- 
ized world. Scattered over the vast expanse of territory our 
seventy thousand soldiers that were at one time in the Philip- 
pine Islands were distributed at nearly six hundred stations; 
hyg-e pursuing columns were also undergoing untold hardships, 
generals and private soldiers all alike without regard to rank 
for a great part of the time carrying their own rations and pos- 
sessing no other camp equipage than the half shelter tent or 
rubber blanket carried on the person. It is difficult to convey 
any adequate idea of the extent of these military operations in 
the Philippines or the strain upon the plrysical endurance of our 
soldiers, who for the first time in the army's career were ex- 
periencing" the sickening and debilitating service in the tropics, 
marching over flooded rice fields, wading through dangerous 
swollen streams, crossing angry rivers on improvised rafts, 
often under hostile fire — all this without the usual place of 
rest in camp, without shelter from rain or sun, and often 
without cooked food. 

Wherever the permanent occupation of our troops was ex- 
tended in the Philippine Islands civil law was quickly put in 
force, courts were organized, and the most learned and com- 
petent native lawyers appointed to preside over them. A sys- 
tem of education was introduced in 1899, and in that year the 
Secretary of War reported to Congress that a greater number 
of good schools, offering facilities for primary instruction, then 
existed in the Philippines than at any previous time in their 
history. 

China' Relief Expedition. 

In June, 1900, conditions became so seriously threatening 
in China that the United States, though reluctant to take any 
intrusive part in the affairs of that vast country, was com- 
pelled to send a regiment of United States infantry from Manila, 
with suitable transportation, medical officers, and rapid firing 
guns, under instruetions to the commanding officer to confer 
with the Admiral commanding the American fleet at Taku 
and to report to the United States Minister at Pekin for 



346 WAR DEPARTMENT. 

such duty as might be deemed necessary in the protection of the 
lives of American citizens in China. Not only had the United 
States Legation at Pekin been attacked, together with the Lega- 
tion buildings of other powers, but the United States Legation, 
together with those of other foreign powers, were actually be- 
sieged and the German Ambassador at Pekin was reported to 
have been murdered. It was at this time that the second com- 
bined expeditionary force to Pekin became necessary, forming 
an allied army of all ie great powers and including our own 
military force under command of Major-General Chaffee, or- 
dered there to protect our citizens and our Legation against 
the murderous assaults of the so-called "Boxers," whom the 
Chinese government had acknowledged and proved itself utterly 
unable to control or subdue. The splendid results that followed 
this display of American force and the assertion of the right 
of the United States to participate with the gTeat powers of 
the world in Oriental matters have all become a part of the 
history of the country. The total military strength of the 
expedition in China numbered 435 officers and 15,018 enlisted 
men, besides 2,000 marines. 



Telegraph, and Cable Lines Constructed by the Signal Corps 
in Cnba and the Philippines. 

Upon -entering the Philippine Islands the American army 
found practically no telegraph lines in existence. The few land 
lines that had been constructed in the Viscayan Islands, were 
early destroyed by the natives, as were many of those in Luzon 
during the retreat of the insurgents. Immediately flying 
lines were laid to follow the advance of the troops, and 
these were succeeded by permanent lines built and repaired 
under the most trying circumstances through an unknown 
country, generally devoid of roads, and where the trails 
through the jungle, difficult at all times, were almost impassable 
during the prolonged storms of the rainy season. 

Added to these difficulties were the incessant efforts of the 
insurgents to interrupt communications; their persistent and 
annoying attacks, and frequent ambuscades of small parties 
which cost the lives of many valuable men. 

In addition to the construction of over 5,000 miles of land 
lines in the Philippine Islands, the army was early confronted 
with the problem of laying and maintaining a system of inter- 
island cables, which, following the rapid advance of American 
troops and the extension of American ideas, could alone furnish 
the means by which military operations and civil control could 
be executed amidst the islands ceded by Spain to the United 
States. As a consequence, the signal corps of the army was 
called upon to enter a new field of endeavor. It was com- 
pelled to fit up for sea service and to maintain cable ships and 
smaller boats; to have manufactured in accordance with its 
own specifications, and to inspect, hundreds of miles of deep 
sea and other cables; and finally to lay and operate these 
cables in the then almost unknown waters of the Philippines. 
All of this was effectively accomplished and there is hardly 
a section of the world where so intricate a network of sub- 
marine telegraph exists. 

The lines of communication embraced 5,108 miles of per- 
manent land lines and 1,326 miles of submarine cables; a total 
of 6,434 miles of telegraph, telephone, and cable communication 
in regions where for the most part the telegraph had there- 
tofore never been seen. The extension of this telegraph system 
in three years of American occupation was far greater than it 
was during the entire previous period of Spanish occupation. 

Upon the occupation of Cuba by the American Army, Janu- 
ary 1, 1899, the olfcl telegraph system was found to have almost 
disappeared. It therefore became one of the most important 
of the early duties of the army of occupation to build or restore 
the lines, so that the first duty of the Signal Corps was to 
provide communication between division headquarters and the 
various posts, garrisons, camps, and important cities. After- 
wards the task of constructing this system from one end of Cuba 



WAR DEPARTMENT. 347 

to the other was undertaken. By April 1, 1899, there 
was completed a system of 2,500 miles, equipped with 
modern appliances and latest methods and consisting of 
nine lines which crossed the island from north to south, 
and one trunk line running- through the center of the 
island from Pinar del Kio, in the west, via Habana and Santiago, 
to Baracoa, in the east. The central line from Habana to San- 
tiago, completed in about three months, was a work of the 
greatest importance to Cuba, which the Spaniards had appar- 
ently never even ventured to undertake. The Commanding 
General in Habana had communication with every point of im- 
portance in Cuba, and the various camps and garrisons had 
been provided with their local systems of communications. At 
the time of the transfer of affairs to the Cuban Government, 
May 20, 1902, this stable and permanent system had been ex- 
tended from San Juan y Martinez, at the western end of the 
island, to Cape Maysi, on the extreme eastern end, embracing 
3,500 miles of wires and giving communication to every town, 
city, or seaport of importance in Cuba. 

Reduction of the Army. 

Atetive military operations on the part of the United States 
having been completed, the War Department-proceeded imme- 
diately to the reduction of the military establishment. The 
provisions of the Acts of Congress of April 22nd and 26th. 
1898, providing for the increase of the army in the beginning 
of the war with Spain, required that at the end of the war the 
entire volunteer force should be discharged from further mili- 
tary service and the ar'my reduced to a peace basis. Thus it 
became necessary four months after its mobilization to dis- 
charge the entire volunteer force, which in August, 1898, con- 
sisted of 5,216 officers and 110,202 men, leaving for all the duty 
which the army had then to perform in the United States, Cuba. 
Porto Rico, and the Philippine Islands, only 2,324 officers and 
61,444 enlisted men of the then authorized regular army, but 
this number was by Acts of Congress subsequently increased to 
65,000 regulars and 35,000 volunteers. 

On February 2, 1901, an act was passed to increase the effi- 
ciency of the permanent military establishment, authorizing 
the President to maintain a regular army according to the 
exigency of the time, from a minimum of 59,131 to a maximum 

of Ioo,ooo. * 

The improvement of conditions in the Philippine Islands in 
the spring and summer of 1901 made it unnecessary to main- 
tain the maximum strength of the army authorized by law, 
and on May 8th of that year an order was made fixing the 
reduced strength of the several organizations in a manner 
to place the aggregate enlisted strength of the army, includ- 
ing all staff departments, at 77,287. 

In 1903 the army was reduced to the minimum allowed by 
law, and even that minimum number was further reduced on 
account of discharges for various reasons, which left the army 
at 55,500 enlisted men, of which number only 15,510 remained in 
the Philippine Islands, whereas now according to latest offi- 
cial reports the total garrison strength in the Philippine Is- 
lands numbers 13,584 officers and men, 

A cursory statement of this kind cannot give any intelligent 
idea of the amount of work that devolved upon the War De- 
partment throughout this period. The United States was re- 
quired practically to raise and disband two distinct armies be- 
tween April, 1898, and July 1, 1901, — one army for the Span- 
ish-American War, which was required to be disbanded immedi- 
ately after the signing of the treaty of peace with Spain, and 
the other army to put down the insurrection in the Philippine 
Islands, which under the law was disbanded between January 1. 
and June 30, 1901. 

Control of Tropical Disciisi-.N. 

In June, 1900, the campaign against yellow Eever on the Is- 
land of Cuba was begun by the medical officers of the army. 
The disease, which was known by authentic records to have 



348 WAR DEPARTMENT. 

existed without a year's intermission for a period of one 
hundred and fifty years, appeared for the last time in 1901, 
after which time the city of Pabana enjoyed complete immun- 
ity as long as the precautions begun by the American officers 
were continued. When the army reoccupied Cuba, however, in 
the fall of 1906, sanitary conditions, which had been in excel- 
lent shape under the former American control, were found to 
have been allowed by the Cubans to lapse into a state approach- 
ing the old Spanish regime. But again the Medical Department 
went vigorously to work and sanitation has been again organ- 
ized and re-established on a sound basis which warrants the 
conclusion that yellow fever, if not entirely wiped out of exist- 
ence there, will always be under control beyond the danger of 
epidemic. 

In June, 1900, a commission of army medical officers met at 
Habana for the purpose of studying the causes of yellow fever. 
Major Keed, the master mind of the commission, in his series 
of most perfectly planned experiments, proved beyond doubt 
that yellow fever is transmitted only by the bite of a particu- 
lar species of mosquito, and that the old theory that filth, 
articles of clothing, etc., could carry the disease, is absolutely 
untenable. The Commissioners exercised great scientific abil- 
ity and energy in their investigations, and much individual 
heroism was required amongst them as well as on the part 
of the enlisted strength of the army, who voluntarily offered 
themselves as subjects for the new experiments for the deter- 
mination of the exact nature of the disease. It was at that 
time that the lamented Dr. Jesse W. Lazear, contract surgeon 
of the United States Army, won immortal glory and distinc- 
tion by voluntarily permitting himself to be inoculated with 
the yellow fever germ, in order to furnish a necesspry addi- 
tional experimental test in the course of investigation, and 
as the result of that act of heroism and superb devotion to 
professional duty, soon afterwards died of the disease. 

In the Philippine Islands, it became the duty of the Army 
Medical Department to protect the army from cholera and 
plague. The United States troops stationed at Manila and 
some of the larger seaport towns had every reason to expect 
the worst; but the troops were carried successfully through an 
epidemic of bubonic plague with only one or two cases affecting 
our soldiers, while smallpox was almost completely eradicated 
from Manila and the larger towns. During the year 1902 nearly 
half of th§ mean strength of the United States army was serv- 
ing in the Philippine Islands, and was everywhere exposed to 
a malignant epidemic of cholera, from which probably 150,000 
natives had suffered with a death rate of over fifty per cent. 
Notwithstanding this, owing to the strict preventive measures 
inaugurated by the Medical Department of the army and 
faithfully carried out by all officers, only thirteen cases of 
cholera per one thousand of strength occurred among the 
troops, with a death rate of 7.5 per thousand. When these 
records are compared with the cholera statistics of the United 
States army in the year 1866, when among the troops exposed 
there were over two hundred admissions per thousand with 
ninety-four deaths resulting, the enormous gain in sanitary 
knowledge and efficiency may be easily seen. In fact, the 
control and final extinction of the Asiatic cholera in the Philip- 
pine Islands seems now to have been accomplished. The severe 
epidemic, which began in 1902, was brought to a close in 
February, 1904, through the skillful and determined efforts of 
the medical officers of the army. 

In the Chinese relief expedition of 1900-01 the United States 
army came into comparison with the forces of most of the 
great nations of the world, and as the result of that comparison 
won for itself highest standing. The Medical Department 
established in a very short time at Tientsin what was regarded 
by far as the best military hospital; and later on at Pekin many 
observers declared that the Medical Department of the United 
States army on duty there was by far the best and most 
intelligently equipped of any medical service there represented. 

One of the most important duties assigned to the Medi- 



WAR DEPARTMENT. 349 

cal Department was that of establishing- sanitary precautions 
at Panama. Recognizing- that the sanitary problem is one of 
the most important in connection with the construction of the 
canal, the Panama Canal Commission very wisely applied for 
Col. W. C. Gorgas, a notable sanitary expert of the Medical 
Corps of the army, to take charge of the sanitary and medical 
department of this great work. Col. Gorgas inaugurated a sys- 
tem of sanitation in 1901, and has attained results that have 
excited the admiration of the world. Yellow fever, the bane 
of the French canal commission, that lost so many lives, has 
disappeared, and malaria, the greatest factor in the sick 
rates in the vicinity of the canal, is being rapidly brought under 
control. 

Another very interesting point in favor of the zealous 
devotion to duty of numbers of the Medical Department might 
be mentioned. Captain Ashford, of the Medical Department, 
having proved that anaemia, which affects about eighty per 
cent of the native population of Porto Rico, was due to infec- 
tion with a small intestinal worm and that the disease is both 
preventable and curable, was at the request of the Governor 
of Porto Rico detailed as the senior member of a board to studv r 
that disease. Under his able direction thousands of cases have 
been cured, and the proper steps taken to stamp out this 
disease. 

The Bureau of Insular Affairs. 

As the result of the war with Spain, the United States in 
1S9J3 became suddenly charged with the affairs of Cuba, Porto 
Rico, and the Philippines, which in consequence of that war 
passed from the jurisdiction of Spain to that of the United 
States. It was a bewilderingly new and vitally important duty, 
demanding careful consideration and quick attention. Natu- 
rally, however, all of those islands being still in the hands of 
our military, and all more or less unsettled and in need of a 
strong, competent hand to control and tranquillize them, the 
Secretary of War, under the immediate direction of the Presi- 
dent, was regarded as the logical head of their governments. 
There was at that time, however, no organized bureau or office 
in the War Department which could well take hold of and 
manage the affairs of those three separate and distinct insular 
people, and therefore, as no time was allowed for delay, it be- 
came necessary for the Secretary of War to establish within 
his own office a small division of insular affairs which has since 
been enlarged by Congress into a Bureau. 

To describe in detail the multifarious duties that devolved 
upon this section of the War Department would be to review 
over again the accounts of all insular affairs which have been 
set forth fully in the chapters devoted respectively to the Philip- 
pines, Cuba, and Porto Rico. Indeed, all of the achievements 
in the Philippine Islands owe much to this Bureau, which, 
acting as the American agency in all matters between the Philip- 
pine Islands and the United States, has played an important 
part and exercised inestimably valuable influence for the bene- 
fit of the insular government. 

In the matter of education alone it has in a practical way 
done much in the great scheme of help to the Filipinos, and 
the manner in which it has supervised the education 
of Filipino youths brought to this country and placed in vari- 
ous schools and colleges has merited unmeasured approval. 
From the very hour that these young men arrived in 
the United States from the Philippines they were taken in 
charge by agents of this Bureau, and their affairs were con- 
stantly and most carefully looked after. There are now nearly 
two hundred of these selected bright and intelligent young 
Filipinos undergoing instruction in carefully chosen educational 
institutions in the United States. 

This Bureau has also rendered conspicuous service in devis- 
ing a new monetary system, banking system, and various 
other innovations calculated to benefit the people ami increase 
the material prosperity of the Philippine Archipelago. 

Its first important duty was with respect to Cuba, super- 



350 WAR DEPARTMENT. 

vising- and controlling the management of the customs and 
every other department of the military and the subsequent 
tentative civil government conducted by the United States. 

One of its first most successful achievements was the prep- 
aration and supervision of the insular tariff system, and it 
has been an indispensable auxiliary in the furtherance of all 
of the schemes for the improvement of conditions in all the 
islands, but more especially in the Philippines, where its chief 
efforts seem to have been centered. 

To the Bureau of Insular Affairs are assigned all matters 
pertaining to civil government in the island possessions of the 
United States subject to the jurisdiction of the War Depart- 
ment ; also the transaction of all business in this country in 
relation to the temporary administration of the government 
of the Republic of Cuba, established under the provisions 
of the Piatt Amendment on September 29, 1906, which is 
subject to the supervision of the 'Secretary of War, as 
well as making it a matter of official record. The Bureau 
of Insular Affairs is the repository of all the civil rec- 
ords of the Philippines and of the ii&mer government 
or occupation of Cuba (which terminated May 20, 1902), 
as well as the records of Porto Rico during the period 
(ending April 30, 1900) in which the War Department exer- 
cised jurisdiction over that island. It is required to furnish 
information relative to these subjects. It prepares, pompiles, 
and arranges for publication executive documents relating 
to the affairs- of the islands under it. It makes a comptroller's 
review of the receipts and expenditures of the Philippine gov- 
ernment, and prepares final statements for presentation to 
Congress of all such accounts. It makes the purchases of sup- 
plies in the United States for the Philippine government, makes 
payment therefor, and arranges for their shipment to Manila. 
It has charge of appointments in the United States to the 
Philippine civil service, including arrangements for transporta- 
tion. It gathers statistics of insular imports and exports, 
shipping and immigration, and quarterly summaries of the 
same are issued so far as the Philippines are concerned. 

WORK OF THE ARMY IN ALASKA. 

Military Telegraph System. 

An extensive system of military telegraph lines in Alaska, 
provided for in Act of Congress approved May 26, 1900, was 
the first step toward securing for the enormous territory of 
the north the means of communicating by electricity from the 
isolated camps and settlements of the territory to the outer 
world. When without the telegraph for many months of the 
year nearly all communication would cease in Alaska and the 
region would become a closed world to the rest of mankind. 
The plan to wire Alaska was stupendous in conception, and has 
been brought to its present state of completeness through the 
energetic work of the Signal Corps, assisted by the line of the 
army. 

The construction began in the late summer of 1900 at Val- 
dez and Fort Liscum, and the system prober, land lines, cables 
and wireless, was completed October, 1904. Including extensions 
and changes made in the route since then, the system is now 
composed of 1,403 miles of land lines, 107 miles of wireless, 
and 2,524 miles of submarine cable. The land lines connect with 
the cable system at Valdez and extend from that point to Saint 
Michael and Eagle City. This great system now affords an 
all-Am erican line of telegraphic communication between the 
United States and the important military and commercial 
points in Alaska, and was accomplished by the officers and 
men of our army notwithstanding the almost impossible diffi- 
culties in the way of absolutely unknown country, laborious 
means of inland transportation, limited working season, in- 
tense cold in winter and flood in summer. 

As a piece of pioneering, the opening of the trails, which 
was an incident of the construction of the telegraph system 
through Alaska, has added another chapter to the excellent 



WAR DEPARTMENT. 351 

record of the American army in this regard. The establish- 
ment of a chain of telegraph offices and repair stations has 
made possible comparatively easy and safe travel along these 
Arctic trails, upon which many a prospector would probably 
have lost his life had it not been for the refuge houses thus 
established. 

Road Work. 

Since the spring of 1905 a board of army officers appointed 
by the Secretary of War have been rendering most effective ser- 
vice in opening up and developing the great natural resources 
of Alaska by constructing and maintaining wagon roads, bridges 
and trails. Up to date they have completed about 200 miles 
of wagon road, 400 miles of winter sled road, 300 miles of 
dog-team and pack trail, completed three river bridges and in- 
stalled three ferries. 

The beneficial effects of this road and bridge work were ap- 
parent at once, and have been speedily followed by an appreci- 
able reduction in freight rates and a saving of time in trans- 
portation. 

PROFITING BY LESSONS OF THE WAR WITH SPAIN. 

The unprepared condition of the country and the Govern- 
ment for war, disclosed at the beginning of the war with Spain 
and painfully apparent as the weeks and months of preparation 
and of the war itself passed, led the administrations of Presi- 
dents McKinley and Koosevelt to enter upon and carry out a 
deliberate and well thought out plan of reorganizing and 
strengthening the military service for purposes of national 
defense and for increasing its usefulness to the country 
in times of peace. That these plans have resulted in great im- 
provements in all tSese lines can but be apparent from the 
facts here presented, and that the results fully justify the work 
undertaken and carried out is equally apparent. 

The war with Spain demonstrated : 

That the organization of the Army, inherited with few 
modifications from the fathers of the Revolution, was inelastic, 
seriously defective in some details, obsolete in others. 

That the United States was absolutely without any effective 
coast defense system, especially so far as concerned the mining of 
harbors. 

That not only should the artillery corps be enlarged, but 
that it should be divided so as to make the mobile and immobile 
sections of it complete in organization under separate and dis- 
tinct heads. Therefore the coast artillery proper was made to 
consist of the immobile part of the artillery, while the field ar- 
tillery, which is the mobile fighting element, was organized into 
regiments wholly separate and apart from the coast artillery. 

That better organization in the manufacturing and supply 
departments of the army was absolutely necessary. There was 
lack of munitions and other materials of war, as well as lack 
of arms, both small and large. 

That a general staff system was imperatively needed in our 
arms to co-ordinate and supervise the military operations of 
the various branches with a view to promoting the general 
efficiency of the armj T and securing a condition of preparedness 
for any emergency it might be called upon to meet. 

That our regular arm}' should be enlarged to a size more 
nearly corresponding to the magnitude of the country and its 
need for national defense. 

That our militia system should be Improved, its organi- 
zation and discipline assimilated to that of the Regular Army, 
with which its members should be brought into more intimate 
contact and relationship. 



PRINCIPAL ACHIEVEMENTS IN THE WAR DKI'\HTMEXT 
UNDER THE PRESENT NATIONAL, ADMIXISTU ATION. 

Wnr Department Administration. 

The War Department has been entirely reorganized and today 
its administrative methods are better systematized and pro- 
duce quicker and more satisfactory results than ever before in 
the history of the War Department. 






352 WAR DEPARTMENT. 

Reorganization of the Army. 

The Army has been enlarged and reorganized, and many of 
its obsolete methods have been discarded or replaced by new 
ones. 

New Military Education System. 

The military educational system has been brought to a higher 
plane of efficiency than ever before, and today is not surpassed 
by that of any other nation on earth. 

During the past seven years the subject of general military 
education has received more attention than ever before in the 
history of the American army. There has been established a 
progressive educational system embracing army service schools 
at Fort Leavenworth, Kansas, which include the school of the 
line, the Staff college, and the Signal School ; mounted service 
schools at Fort Riley, Kansas, including the training school 
for officers and non-commissioned officers ; the training school 
for farriers and horseshoers, and the training school for bakers 
and cooks ; the Coast Artillery School and the School of Sub- 
marine Defense at Fort Monroe, Virginia; the Engineer School 
at Washington Barracks, D. C. ; the Army Medical School and 
the new Army War College at Washington, D. C. 

The object of the War College is not to impart academic 
instruction, but to make practical application of military knowl- 
edge already acquired. Its work includes all that is involved 
in the preparation for war of the officers of the army in stra- 
tegical and tactical problems, and embraces all the general 
system of military instruction at all the posts, garrison 
and service schools, as well as at the Staff College; also to 
supervise and classify tha civic schools and colleges at which 
army officers are detailed as instructors, with a view to select- 
ing those schools from which graduates may be appointed as 
second lieutenants in the army. The students are selected 
by the Chief of Staff and detailed by orders from the War De- 
partment in such number as may be expedient for the course 
of instruction beginning November 1st and ending October 
31st. The Army War College goes beyond any institution of 
the kind ever attempted before in this country. It opens and 
controls a field of military training extending beyond the army 
itself and even to the organized militia of the States, whose offi- 
cers are eligible for instruction at the service military schools ; 
it guarantees facilities and all possible encouragement and help 
for military education; and beyond this it goes further and 
extends a helping hand even to the young students of the 
various civic colleges in the country. All in all, it is an 
institution of military learning and for the general direction 
of military instruction unequaled in any other country. 

Improvement of Artillery Service. 

The artillery branch of the army has been enlarged and 
entirely reorganized — divided into two parts, the mobile or field 
artillery, and the immobile or coast artillery. The former has 
taken its place with the infantry and cavalry and other ele- 
ments of the moving army, whereas the latter, under the im- 
mediate direction and control of the Chief of Coast Artillery, 
is charged with all coast defensive duty. 

Seacoast Defenses. 

The Engineer and Ordnance Departments, which are charged 
with the construction and arming of seacoast fortifications, 
and the Quartermaster's Department, the Signal Corps and the 
Artillery Corps, which provide auxiliary defenses and accessories, 
are all working- with more effective co-operation than ever before, 
and for the first time in the history of the United States the 
seacoast fortifications are now in position to defend the coast 
without reliance upon the navy. Thus the navy in the event, 
of war would be set loose and free to exercise its legitimate 
function of seeking the enemy's fleet. 

The "Taft Board" has made many important change? in 
the national system of coast defenses formulated by the "Endi- 



WAR DEPARTMENT. S58 

cott Board," which not only result in much saving of money, 
but contemplate greater protection for the big harbors than 
ever before undertaken. Great reductions have been accom- 
plished in the cost of emplacements, while the efficiency of the 
guns has been at the same time enormously enhanced. Heavy 
seacoast guns that were formerly mounted on gun-lifts, whereby 
the gunners were protected from the enemy while loading and 
after firing, could only be fired once in eight minutes, and the 
cost of the gun-lift was $525,000. Similar guns are now mounted 
on disappearing carriages at a cost of $150,000, being a reduction 
of $375,000 in the cost of mounting, with equal or better pro- 
tection to guns and men, and the guns can be fired ten times 
in eight minutes, or ten times faster than a few years ago. 

This Board brought about a rearrangement of and additions 
to the lists of ports recommended by the Endicott Board for 
fortification. These rearrangements and additions embraced 
within the new scheme of the Taft Board were due to the 
growth of the country, the improvements in ordnance and the 
building of a navy, as well as to matters of naval policy de- 
veloped during the preceding twenty years, and to recent dis- 
coveries in the science of manufacture of ordnance and ma- 
terials of war which could not be evaded. 

The Endicott Board, while attaching importance to defenses 
at the entrance to Chesapeake Bay for the protection of Hamp- 
ton Roads, Norfolk, Newport News, Washington, and Baltimore, 
and at the eastern entrance to Long Island Sound for the pro- 
tection of New York, confined its recommendations respecting 
these localities to so-called floating defenses or floating bat- 
teries, as outer lines of defense. The Taft Board, however, 
regarded Chesapeake Bay as commercially and strategically 
of the very first importance, and regarded the completion of 
fortifications at the entrance to Long Island Sound as only 
second to the consideration due to Chesapeake Bay. It will 
thus be seen that by taking all necessary action looking to the 
complete defense of the entrances to Chesapeake Bay, which 
command the approaches to both Washington and Baltimore, 
and the entrance to Long Island Sound, which constitutes the 
first line of defense of New York City against naval attack 
from that direction, the Taft Board has taken the precaution 
to look well after the hitherto neglected national metropolis 
as well as the national Capital. The Taft Board also" took up 
the demands of Puget Sound, which in recent years has become 
of the greatest strategic and commercial importance, due 
to the completion in the extreme northwest of great railway 
systems, the rapid development of commercial, agricultural and 
manufacturing interests, and the establishment of a navy yard 
containing the only dry dock on the Pacific coast with a 
capacity for a battleship. In addition to these important recom- 
mendations, the Taft Board likewise considered and devised 
a scheme for fortifying the insular possessions, including 
Manila, Honolulu, and San Juam, whose military importance as 
naval bases and coaling stations, aside from other consider- 
ations, demanded proper attention, and furthermore provided 
for fortifying the Isthmian Canal ports of Colon and Panama, 
two most important projects, to be paid for out of the Panama 
Canal fund. 

Notwithstanding all the important changes made in the sys- 
tem of national defenses, the plan of the Taft Board contem- 
plates that adequate defenses may be secured for both the 
Atlantic and Pacific coasts for $277,239 less than that esti- 
mated by the Endicott Board, and that the defease of the 
twenty-two ports common to both the former and the present 
systems can be completed for $22,896,606.00 less than the sum 
originally proposed by the Endicott Board, if omission be made 
from the comparison of estimates for ammunition and sites. 

Small \rins. 
New models of rifles, bayonets, and entrenching tools have 
been adopted, manufactured, and issued since 1906. not only to 
the regular army, but to the organized militia of the States afc 
well. 



354 WAR DEPARTMENT. 

Prior to the Civil War the national workshops of the Ord- 
nance Department could barely complete thirty rifles a day. In 
1897 their capacity was only 200 guns per day. Now the two 
giant gun factories at the Springfield and Eock Island Arsenals 
are capable of manufacturing between 650 and 700 complete rifles 
every working day of eight hours, and in an emergency could 
produce 1,500. 

The New Militia System. 

The National Guard or the organized militia of the States, 
under the supervision of the War Department, has been brought 
to a very high state of practical efficiency. The old militia laws, 
which for more than a hundred years defied all attempts at 
change, have given way at last, and State and Federal troops are 
to-day in closer touch than ever before in our history. Whatever 
may have been the reason for this former inaction in regard 
to an important feature of our military organization, it was 
reserved for the present National Administration to present 
the matter to Congress in a way which finally resulted in the 
Federal militia law of January 21, 1903, which has rescued the 
militia from its realm of obsoletism. 

Since the enactment of that law the War Department has 
devoted itself to improving in every possible way the organized 
militia of the States, now commonly known as the National 
Guard. From time to time, beginning with the large mobiliza- 
tion of over twenty-six thousand militiamen at Manassas in 1904, 
there have been joint encampments of the regular army and the 
National Guard, and a system has been adopted by which the 
State troops are more or less constantly under the surveillance 
and instruction of the regular army. 

Acting upon the theory that there should be an available 
military reserve to act as supports and defenders of the sea- 
coast artillery from land attacks, within the past two years 
a system of instruction has been inaugurated for such organ- 
izations of the National Guard as were willing to assemble at 
the various regular army artillery posts. In this way an in- 
terest has been awakened, which it is hoped will lead to the 
organization of coast artillery companies in many of the cities 
of the States adjacent to the larger artillery defensive points. 

Additional militia legislation amending the militia law of 1903 
in the light of experience of its actual workings during- the past 
five years was secured at the last session, of Congress. Under the 
provisions of that act, approved May 27, 1908, the value of the 
militia to the Government in the event of war would be greater 
than ever before, as this body of citizen soldiery, fully armed, 
clothed, and equipped, and having the same organization and sys- 
tem of drill and training as the regular armv. would be immedi- 
ately available at the first outbreak of hostilities to supplement 
our small standing army and to constitute with it the nucleus of 
those greater volunteer armies upon which this country must al- 
ways depend in time of war. 

SUPPLY DEPARTMENTS. 
Practical Demonstration of Improved Conditions. 

The supply departments of the Army are better organized, 
better equipped, and more resourceful than ever before. 

A practical illustration of the increased efficiency and re- 
sourcefulness of the Quartermaster's and other supply depart- 
ments was given in 1906 in connection with the movement of the 
army of Cuban pacification. As if to demonstrate the improved 
conditions that were prevailing in 1906 over those unsatisfactory 
conditions that prevailed in 1898, within five minutes after re- 
ceipt of the telegram from the President directing the movement, 
the necessary orders for the movement of the selected troops 
were in the hands o£ the telegraph operators, and a camp was 
quickly established at Newport News, Virginia, to serve as a 
basis of operations. The stores and supplies necessary to equip 
this expedition of 380 officers and 5,220 men were promptly, set 
aside at designated depots of the Quartermaster's Department, 
and the officers in charge of the depots were instructed to be 



WAR f)El>ARTMENT. 355 

prepared to ship sap-dies promptly on notification. This work 
was so well handled, that within twenty-four hoars after tele- 
graphic instructions for forwarding these supplies were received 
they were en route to their destination by fast freight and ex- 
press from Philadelphia, New York, Boston, Chicago, Jefferson- 
vi lie and St. Louis, including clothing, camp and garrison nqui- 
page, and all the various article's of military supplies needed for 
the army about to start for Cuba. In addition to these 

articles other shipments were made from time to time as 
required, and the War Department in all respects had reason 
to congratulate itself, not only on the carefulness with which 
that mobilization of troops had been so satisfactorily effected, 
but on the complete and expeditious manner in which the 
troops had been amply supplied and equipped with all that was 
needed for the expedition upon which they were about to start. 

The army is better fed than ever before. The Subsistence 
Department has devoted much time, not only to the selection of 
proper food stuffs for the Army rations, but has likewise studied 
closely the methods of food preparation, and has established a 
school for the training- of army cooks. It has also, by the use of 
the newly invented so-called "Fi'reless Cooker," provided for fur- 
nishing warm cooked food in camp, on the march, on the battle- 
Held, and even on the firing line if necessary. 

The Subsistence Department, aside from its strictly military 
duties, has won the admiration of the people generally through- 
out the country by proving itself of inestimable help to stricken 
communities in times of emergency and catastrophe, such as 
earthquakes, cyclones, famines, fires, and floods. These efforts 
have called forth the warmest expressions of gratitude from the 
beneficiaries. Among the most notable instances which have 
occurred in this respect are those on the occasion of the 
loss of life and property during the flood on the Mississippi 
iiiver in 1897 ; during' the Santiago campaign of 1898, when the 
Spaniards expelled the people from the city and they came 
to the American Army in a wretched and starving condition 
and were fed and cared for: when Porto Kico was visited by the 
destructive hurricane in 1S99, which left death and starvation 
in its wake; in the disaster at Galveston in 1900, when the 
city was almost swept away by flood and thousands of lives 
were lost; when the volcanic eruption occurred in the French 
West Indies in 1902, in which nearly 40,000 human beings per- 
ished; and when the people of Cuba were subjeeted to the 
horrors of the "Reconcentrado"' order and were starving. It 
was in a measure a race against death when the steamship 
"Comal" carried succor to the helpless and famished people of 
that island, who were perhaps saved from partial extinction by 
the timely and generous efforts in their behalf. The Sub- 
sistence Department fed the helpless and starving Filipinos 
by purchasing and distributing for the Insular Government 
over 20,000,000 pounds Of rice, sugar, and salt in 1902. This, 
while from motives of humanity, operated in the end as a vital 
war measure. In the appalling calamity which overtook San 
Francisco and neighboring cities in the spring of 1906, when 
earlhquake and conflagration rendered thousands homeless 
and hungry, the Subsistence Department was ehanred with feed- 
ing the destitute and the unfortunate; and while the earthquake 
and tire had destroyed the Commissary Depot in San Francisco 
at that time, the personnel of the Commissary Depot remained 
intact and its organization was enabled to render invaluable 
Service in the distribut i<m of the needed relief. This relief 
wns continued for some time through the efforts of the Na- 
tional Red Cross Association, arid through donations from other 
charitable institutions and private individuals. 

The purchase and inspection of larfcje quantities of supplies 
heeded for relief of the starving in China last year were mostly 
made by the Subsistence Department'. Cpon reque&t 6f the Na- 
tional Red Cross Association the Department purchased relief 
supplies at San Francisco For thai ore/:: ni/.a t ion in connection 
with the Chinese Famine Relief, and all Subsistence officers 
who were requested to act as purchasing agents for the pur- 
pose promptly expressed their* Willingness t<> serve in such 
capacity. The Christian Herald of New V-uk also asked the 

25 



356 WAR DEPARTMENT. 

Department to purchase and inspect supplies to be provided 
from the fund raised by that paper for the relief of the famine- 
stricken people in China. Both the Red Cross Association and 
the Christian Herald expressed the highest appreciation of the 
services rendered, and the editor of the Christian Herald said, 
among- other things, that the services which the Department 
rendered "could not have been improved upon." 

In the recent cyclone that visited the Southern States — -in- 
volving loss of life, destitution, and destruction of property — 
the Subsistence Department responded promptly and effectively 
to the call made upon it. 

Work of the Army of Pacification in Cuba in 1906. 

On account of the insurrection in Cuba in 1906 the necessity 
arose for the intervention of the United States, and on Septem- 
ber 28, 1906, an expedition of United States troops consisting of 
380 officers and 5,220 men sailed for Habana. Our troops forming 
the army of pacification are still in Cuba under the command of 
a major-general of the United States army, who is conducting 
military administration under the advice and direction of the 
Civil Governor of Cuba, appointed by the President of the United 
States, and the good results of that military aid to Cuba are 
already being demonstrated in all parts of the island, as will be 
shown elsewhere in the special chapter devoted to Cuba. From 
the date of arrival in Cuba of the troops constituting this army 
it had been what its n: f \e implies — an army of pacification — and 
no cases whatever had arisen for resort to force of any kind. The 
moral effect of the presence of this little Army of Pacification 
has nevertheless shown itself everywhere, so that the remotest 
nooks and corners of Cuba have been made aware of the fact that 
United States soldiers are there for the protection of the people 
and the enforcement of the law. Details of the work performed 
in Cuba by officers and men of the War Department are stated 
in another chapter. 

Medical Department. 

In modern warfare the service rendered by a medical corps 
consists largely in enforcing sanitary precautions and health 
measures that will reduce disease among the troops to a mini- 
mum and prevent their effective fighting strength from being 
unnecessarily lessened from this cause. This is particularly true 
in our own case, because in any war in which the United States 
may ever be engaged our armies will always consist in the main 
of volunteers, who naturally do not fully realize the immense 
importance of safe-guarding their health and taking care of 
their physical condition, and if they did are not trained in the 
matters essential for that purpose. 

Adequate provision for caring for the health and comfort of 
the volunteer forces in time of war could only be made by crea- 
ting a sufficiently large body of competent surgeons with military 
knowledge and training, requiring years of hard and conscien- 
tious work. These facts were ..pressed upon the attention of Con- 
gress with great earnestness by the War Department, and on 
April 23, 1908, a measure of relief was passed. Under the pro- 
visions of this law the Medical Department has been enlarged, 
and for the first time is now in position to prevent the needless 
loss of life and treasure which in times past resulted from in- 
sufficient medical attendance. 

River and Harbor Improvements. 

In no department of government activity perhaps has there 
been more progress during the past twelve years than in the 
work of improving rivers and harbors, which has been under 
the direct supervision and control of the Corps of Engineers 
of the Army, and certainly there is no field of effort more 
important or beneficial to the people at large. 

At no period has this development been greater than between 
the years 1896-1908, and the systematic and energetic methods 
employed, born of experience and intelligent conception on 
the part of Congress and the executive, have resulted in a 
maximum of benefit to the agricultural, commercial, and manu- 



WAR DEPARTMENT. 357 

facturing interests of the country at a minimum of cost. Dur- 
ing these thirteen years Congress has appropriated a total of 
$264,215,113 for the execution of definite projects carefully and 
scientifically formulated by experienced engineers. 

There are now 592 separate works being carried on under 
the charge and supervision of sixty-four trained and educated 
officers of the Corps of Engineers. These works range from 
the bays and broad armed ports where "rich navies ride," to 
the small streams, creeks, and inlets over which the products 
of the farm are carried to market in rowboats and in small 
schooners, or lumber from our virgin forests is floated in 
rafts. In 1896, about 7,500 men were employed on river and 
harbor works, whereas during the past year more than 15,000 
have been given regular and profitable employment, an increase 
of 100 per cent. 

To convey an accurate understanding of the magnitude of 
the internal commerce using our waterways, and of the work 
that has been accomplished for its convenience, is an almost 
impossible task. The constant growth in size, draft, and carry- 
ing capacity of vessels navigating the inland waterways, as well 
as those employed on the seaboard, has necessitated increased 
depths and widths of channel. Twenty-five years ago harbor 
depths of from 12 to 25 feet were considered ample, but depths 
of 30, 35 and even 40 feet are now required in our important 
harbors, and have already been acquired or provided for. 

Among the results accomplished up to the present time 
may be mentioned the increased depths and widths of chan- 
nels in the great harbors of the country, particularly Charles- 
ton, where the depth has been increased from 10 to 26 feet; 
Ambrose Channel, New York Harbor, where the original avail- 
able depth of 16 feet has been increased to 35 feet, and it is 
estimated will be still further increased to 40 feet by the year 
1910; and Galveston, where the original depth of 9 feet has 
been increased to a ruling depth varying between 27^4 and 30 
feet; the improvement of the ports and rivers tributary to the 
Great Lakes, whii-h has developed a marine performing a ser- 
vice greater than that done by one-quarter the entire railway 
freight equipment of the nation, and forming a means of trans- 
portation costing only about one-ninth of the cost of the same 
service by rail; the construction of canals, and thirty-two differ- 
ent slack-water systems as artificial aids to the navigation 
of rivers, such as the St. Marj^'s Falls Canal, through which 
there passed during the calendar year 1907, 15,643 vessels, 
aggregating 32,001,110 registered tons, and carrying 42,631,846 
tons of freight, and 32,875 passengers. The corresponding 
figures for the Suez Canal for the same period are as follows: 
Number of vessels, 4,273 (of which 64 were men-of-war, trans- 
ports, etc.) ; gross and net tonnage respectively of merchant 
vessels, 20,307,880 and 14,596,478; gross and net tonnage, 
respectively, of men-of-war, transports, etc., 245,361 and 
131,848; total gross and net tonnage, respectively, 20,533,241 
and 14,728,326; total number of passengers, 261,275 (of 
which 105,686 were military and 158,589 civil); the improvement 
of the Mississippi river and its tributaries, aggregating more 
than 16,000 miles of navigable waterways, reaching the very cen- 
ter of the country and affording a cheap and ready means of 
transporting the vast products of farm and mine; the im- 
provement of various important harbors and waterwaj r s on the 
Pacific Coast, including the Columbia Ttiver. which penetrates 
the rich forests of Washington and the grain-bearing regions 
of Oregon, and into which, since improvement, the largest 
vessels can now enter and depart without difficulty — in short, 
every part of our seacoast, from St. John to the Rio Grande, 
f' from San Diego to Puget Sound, more than 23,000 miles in 
extent, and every section of the country traversed by our 
inland waterways has been benefited by reason of the increased 
facilities and lessened cost of transportation. 

The value to our commercial and industrial interests of the 
work of the army engineers under the direction of the War 
Department in the improvement of rivers and harbors is in- 
calculable. Directly or indirectly it touches beneficially every 
home in the land. 



358 WAR DEPARTMENT. 



Relief 'Work of the Army in National Emergeuyien. 

The army, aside from its strictly military functions, performs 
civic duties which, besides adding to the general welfare of the 
country,. tend to give to the people a feeling of greater security 
and confidence. In times of great national disaster and affliction 
or even State catastrophes, when the State is unable to meet 
the situation wholly, the army becomes the quick and faith- 
ful agency of the National Government, in extending rebel 
to the afflicted. In numerous instances of direful exigency the 
Quartermaster's Department has furnished to the people "shel- 
ter and fuel; the Subsistence Department has furnished both 
cooked and uncooked food; and the Medical Department has 
furnished medical supplies and given medical attention to the 
sick and needy, while the Signal Corps of the Army has been 
prompt in putting up telegraph wires and maintaining unin- 
terrupted private and commercial communications, as w T as 
notably the case in San Francisco, when the Signal Corps 
men were stringing wires within a few hours after they were 
down, over the still smoldering fire district of that stricken 
city. 

In addition to this, soVhers G f a p arms of the service, when 
occasion required have been placed on duty as guards and 
' patrols for the protection of life and property, and never 
yet in a single instance has the War Department, failed to re- 
spond to a call for help from any section of the United States — 
even now afflicted and homeless people in the Sontb are being 
cared for after the recent cyclonic storms and floods in Southern 
States. 

Expenditures for Support of tlie Army. 

Before the war with Spain expenditures for what is known 
as the Milltorv Establishment averaged about $23 000 0)0 annu- 
ally. In 1898 they rose to $55,000,000, and in 1899 to $235,000,000. 
The annual average for 1900 and 1901 fell to $100,000,000. In 
1901 the increase of the regular army took place under the law 
authorizing the President to fix the strength of the army at a 
minimum of 60,000 and a maximum of 100.000. Since that year 
the numerical strength of the regular army has been approxi- 
mately two and one-half times its numerical strength prior to the 
war, and allowing for the increased cost of materials and sup- 
plies, the expenditures that have been made for its support 
and maintenance have increased in about the same ijroportion. 
the average annual expenditures for this object since 1901 being 
about $73,000,000. % These figures do not include expenditures for 
Coast Defenses. 

Expenditures for Seaeoast Defenses. 

Since the war with Spain large expenditures have been made 
for those public works of a military nature which constitute a 
permanent plant, and may be briefly described as the seaeoast 
defenses of the Nation. Speaking of this great national work of 
coast defense, Secretary Hoot in his annual report for 1902' 
stated as follows : 

"Before the war with Spain it proceeded in a very, leisurely way. Since 
the beginning of that war it has been pressed forward with great activity. The 
work was commenced in 1S88 ; but for the eight years which followed prior 
to 1896 the total appropriations for the construction of fortifications 
amounted to but $3,521,000, or an average of $440,000 a year, while for the 
last seven years, beginning with 1896, the appropriations have am'ounted 
to $22,236,000, or an average of $3,176,000 a year, an annual increase of 
more than sevenfold. The appropriations for the construction of guns and 
carriage^ for seaeoast defense for the eight years prior to 1896 were but 
$8,100,000 (not including the unsuccessful dynamite gun), an average 
annual rate of $1,012,000, while the appropriation^ for the same purposes 
for the last seven years were $24,193,000. <->r nr\ annual average nf $3,456.- 
000, an annual increase of more than threefold. Out of the $58,000,000 
expended for both classes of work, over $46,000,000 have been appropriated 
in the last seven years." 

Out, of 2.362 guns and mortars contemplated in the project of 
the Endicott Board, only 151 were actually in position and ready 
for immediate use April 1. 1898. There are now over 1,200 of 
them completed and mounter]. 



WAR DEPARTMENT. 350 

The Endicott Board plan of coast defense contemplated the 
expenditure of over $100,000,000. Before 1896 we were progress- 
ing at a rate which would have required seventy years to com- 
plete the defenses according to the plan. Since 189G we have 
been progressing at a rate which will finish the defenses ac- 
cording to the plan in fifteen years. 

The Work in the Islands and Panama. 

Details of the ^vork of the past four years in the Philippines, 
Hawaii, Panama, Cuba, and Porto Rico will be found in the 
separate chapters devoted to those subjects. 

The New Militia Law. 

One of the important acts passed by the first session of the 
Sixtieth Congress was the Dick-Stevenson bill amending the 
militia law. 

The new law provides that the National Guard of the various 
States shall be first called into service after the regular army in 
case of war, and the regimental organizations shall be taken In- 
tact. The provision in the old law limiting to nine months 
their term of service when called out by the President was re- 
pealed, and National Guardsmen hereafter mustered into the fed- 
eral service will serve out their terms of National Guard enlist- 
ment. The old limitation that they could not be ordered outside 
the limits of the United States was also abolished, and the Na- 
tional Guard can now in time of war be ordered by the President 
any place that he can send the regular army. The new act also 
provides an annual allowance of $2,000,000 for arms, clothing 
and other equipment, and makes provision also for an annual 
clothing allowance. 

This legislation will in time make the organized militia of the 
United States what it has long desired to be — a real National 
Guard and the second line of defense in case of war. The Guard 
will in time, under the new law. be armed, clothed and equipped 
n*=? the regular army. It will do more for the efficiency of the 
National Guard than any legislation yet enacted, and will pro- 
duce a. well trained and well equipped force ready on a moment's 
notice to answer a call for national service, and constitute an effi- 
cient and homogeneous force capable of immediate and splendid 
military work. 

The law does not provide for any conscription on forced mil- 
itary service, all service in the Guard being voluntary, but gives 
the National Guard what it never had before, a fixed status in 
reference to the national defense in case of war. The bill was 
supported heartily. by the National Guard of the entire country 
and by the military establishment of every State. The measure 
will prove of great value to the Guard and to the entire country, 
and make us better prepared for war at a minimum of expense 
than ever before in our nation's historv. 



Onr policy is one of fair and cqnal Justice to nil men, pay- 
ins: no heed to whether he Is rich or poor nor lieediiijuv his 
race, his creed or hi* birthplace.— From President Roosevelt's 
speech of acceptance. 

The Repnblienn party stands now as ever, for honest 
money and a chance to earn it by honest toi' — Prom an ml- 
dress by Hon. Wm. McKinley before the Marquette 01 ah, 
Chicago. Feb. 12, 1S!H;. 

Those who denounce the K'old ••aniMird nnd assail its 
supporters must have read to no profl* the splendid nn<l in- 
comparable history of their country. — Hon. C. W. Fairbanks, 
in U. S. Senate, March B. 10 Op. 

The contention tun* we are not n nation with power to 
govern a oonquered or purchased territory robs us of u 
faculty most important for nooil to every sovereignty. — Hon. 
Wm. H. Taft. at Cleveland, Ohio. 

One vitnl. dominating fact confronts the Dciuocrntie 
party -which no oratory, which no e'ooMencc. which no 
rhetoric can obscu-e: BRYAN'S NOMINATION MEANS TAFT J> 
ELECTION.— New i ork World. 



THE NAVY DEPARTMENT. 



As wars between nations come suddenly, just as do personal 
•onflicts between men, our Navy must be maintained upon that 
basis of possible contingency. Examination of our national his- 
tory shows that wars have sprung- suddenly into existence while 
wise men were proclaiming that war could not occur, and that 
there are many instances where the most unexpected occurrences, 
have brought us to the very verge of battle. This fact was 
clearly and impressively set forth by President Roosevelt in a 
special message to Congress in April last, when he said: 

Extract from Special Message of the President of the United 
States, April 14, IGOS. 

To the Senate and House of Representatives : 

I advocate that the United States build a navy commensurate with 
its powers and its needs, because I feel that such a Hfcvy will be the surest 
guaranty and safeguard of peace. 

We are not a military nation, yet we are a rich nation, and unde- 
fended weertth invitee aggression. The very liberty of Individual spefch 
and action, which we so prize and guard, readers it possible that «4 times 
unexpected causes of friction with foreign powers may suddenly develop. 
At this moment we are negotiating arbitration .treaties with all the other 
great powers that are willing *o enter into them. These arbitration 
treaties have a special usefulness because in the event of some sudden 
disagreement they render it morally incumbent upon both Bations to seek 
first to reach an agreement through arbitration, an 4 at least secure a 
breathing space during which the cool judgment of the twe nations in- 
volved rt:ny get the upper band over any mememtary burst ef anger. These 
arbitration treaties are tntered into net only with the hope ef preventing 
wrong-doing by ethers against us, but also as a pr«of that we have no in- 
tention of doing wrong ourselves. 

Tet it is idle to assume, and from the standpoint of national inter- 
est and honor it is mischievous folly for any statesman to assume, that 
this world has yet reached the stage, or has come within measurable dis- 
tance of the stage, when a proud nation, jealous of its honor and conscious 
of its great mission in the world, can be content to rely for peace upon 
the forbearance of other powers. It would be equally foolish to rely upon 
each of them possessing at all times and under all circumstances and pro- 
vocations an altruistic regard for the rights of others. * 

It is our province to decide whieh side ha« been right and which has 
been wrong in all or any of the?e controversies. I am merely referring 
to the loss of life. It is probably a conservative statement to say that 
within the last twelve years, at periods of profound peace, and not as the 
result of war, massacres and butcheries have occurred in which more lives 
of men, women, and children have been lost -than fn any single gfeat war 
since the close of the Napoleonic struggles. To any public man who knows 
of the complaints continually made to the State Department there is an 
element of grim tragedy in the claim that the time has gone by when weak 
nations or peoples can be oppressed by those that are stronger without 
arousing effective protest from other strong Interests. Events still fresh 
in the mind of every thinking man show that neither arbitration nor any 
other device can as yet be invoked to prevent the gravest and most terrible 
wrongdoing to peoples who are either few in number or. who, if numerous, 
have lost the first and most important of national virtues— the capacity 
of self-defense. 

The United States can hope for a permanent career mt peace on only 
one condition, and that is, on condition of building and maintaining a first- 
class navy. 

The United States ought not to indulge a persuasion that, contrary 
to the order of human events, they will forever keep at a distance those 
painful appeals to arms with which the history of every other nation 
abounds. There is a rank due to the United States among nations which 
will be withheld. If not absolutely lost, by the reputation of weakness. If 
we desire to avoid insult, we muft be able to repel it ; if we desire to secure 
peace, one of the most powerful instruments of our rising prosperity, it must 
be known that we are at all times ready for war. 

Personnel of the Navy. 

The present administration has continued the development 
and perfecting of all parts of our Navy. Our ships, built by 
American hands, are sailed hy men and officers of American 
birth. ' The enlisted men now come into the Navy from ^vevy 
State and Territory and from nearly every city and town, to the 
great advantage of the Nation and the Navy. These young men, 
a large proportion of whom are from the States of the West 
and Middle West, are splendid examples of American manhood, 

300 



NAVY DEPARTMENT. 361 

and form a class described by Admiral Dewey as "the best en- 
listed men in the world." Of this enlisted force 95 per cent are 
citizens of the United States and 85 per cent are native born. 
The Jast session of* Congress provided for an increase of 6,000 
seamen, making- the total authorized force 44.500. The Marine 
Corps has been increased by 750 men and 52 officers, making- the 
total authorized force 9,521 men and 333 officers. The Marine 
Corps occupies 38 shore stations, and marines are stationed on 
every large naval vessel. The shore stations include the U. S. 
Legation at Pekin, stations in Panama, Cuba, Alaska, Yoko- 
hama. Guam, Philippine Islands, Honolulu, and each regular naval 
station. 

The naval officers of the line, those officers who have the 
duty of navigating- and fighting- our ships, form the most. numer- 
ous part of our commissioned naval personnel. They are, for 
the most part, graduates of the U. S. Naval Academy. They 
enter the Naval Academy upon nomination by Senators and 
Members of Congress, from every State and Territory and from 
every Congressional district. There is thus no aristocracy in the 
Nav\-, as it is constantly recruited from every part of our great 
nation. The son of a laborer and of the millionaire are treated 
alike at the Xaval Academy and they succeed or fail by the 
same standard regarding- individual merit, abilitjs and charac- 
ter. They are trained in character. They are trained in the 
duties of the landsman, the seaman, and the officer, acquiring a 
knowledge aud skill in navigation, gunmny, engineering, and all 
things that enter into the construction, handling, movement, and 
operation of vessels of war and the offensive and defensive weap- 
ons of war placed upon them. It is fair to say that our naval 
officers are the best in the world, and fairly representative of 
the people whom they serve, and to their high personal character 
and devotion to the naval service we owe the great efficiency and 
preparedness of our Navy, built, officered, and manned by Ameri- 
cans, a navy of the people, governed by the people and for the 
people. * 

The training of the officers and men of the Navy is continu- 
ous, based upon the experience in naval warfare of maritime na- 
tions. Officers begin their study and training for battle at the 
Naval Academy, and continue it throughout their active service, 
in actual battle tactics and drills and in the study of plans, pro- 
jects and history of warfare at the Naval War College. The 
General Board, whose president is Admiral Dewey, prepares 
plans for all possible contingencies, and in time of war. or when 
active service on a considerable scale is required of the Navy, it 
is prepared to advise regarding naval operations. The Torpedo 
School at Newport, K.. I., furnishes practical and theoretical in- 
struction to officers and men regarding submarine operations, 
torpedoes, mines, explosives, and submarine torpedo boats. 

The present system of training in gunnery has been continu- 
ously successful since 1903. The records for the year show that 
both rapidity of fire and percentage of hits are greater than in 
any preceding year, though the conditions of the tests were 
more difficult than heretofore. This increase in evnnency Is due 
to the skill and ener«ry of officers and men and the spirit of 
competition which is fostered betw T een individual ships anU indi- 
vidual guns. In battle practice at sea and at ranges of from 
6,000 to 9,000 yards the heavy guns made over 30 per cent of hits 
against targets 30 fe^t high and 60 feet long, on unmarked range* 
and under the conditions of tiring in action. Our Navy is second 
to none in this regard. In small-arm target practice, also a verv 
marked improvement has been shown. 

Recent experiments, under actual battle conditions, have been 
made by firing the heaviest projectiles and toi)>ed<>es ai tin- ar- 
mored monitor "Florida." and these practical tests arc carefully 
studied by our officers and other experts. 

The Dry Dork Dpwo>. 

The giant steel floating dry dock "Dewey." completed in 100.". 
is capable of raising an injured vessel of 16.000 tons, whose bot- 
tom is 37 feet below the water surface. To have in our Philip- 
pine possessions this American-built dry dock, adapted to raise 



362 NAVY DEPARTMENT. 

for repairs our largest ships, the unique experiment of towing it 
half way around. the world was made by the Navy Department. 

Ill tow of three vessels the "Dewey" departed from Chesa- 
peake Bay December 28, 1905, and passing through the Suez 
Canal arrived safely at Olongapo, P. L, July 10, 1906, having 
traversed 13,089 miles in 150 days 9% hours of steaming, an 
achievement without a parallel in maritime history. 

Naval Review. 

The Atlantic fleet was reviewed at anchor off Oyster Bay by 
the President September 3, 1906, and again at the Jamestown 
Exposition, in Hampton Roads, April 26 and June 10, 1907. 

The Secretary of the Navy reviewed the two fleets, Atlantic 
and Pacific, at San Francisco, on May 8, 1908, the grandest naval 
review in the history of the country, comprising forty-five fight- 
ing ships and twenty thousand fighting men. 

Naval Expenditures Awthorijced by Sixtieth C«ngrress. 

The Sixtieth Congress at its first session, just ended, made 
provision for: Completing the Naval Training Station, Great 
Lakes, near Chicago, where 2,000 seamen may be recruited from 
the sturdy men of the West. 

For a naval station jat Pearl Harbor, Hawaii. 
. For improving the naval stations at Olongapo, Guam, Cavite, 
Culabra and Tutuila, and various naval stations in the continen- 
tal limits of the United States. 

For two 20,000-ton battleships. 

For ten torpedo-boat destroyers. 

For two fleet colliers. 

For eight submarine torpedo boats. 

The Navy as Insurance. 

The Navy of the United States is an instrument of peace. 
Regarded as an insurance against war and the consequent enor- 
mous losses incident to war, it is the cheapest insurance in 
which our nation can invest. Great Britain, whose total valua- 
tion is fifty-nine billion dollars, expends annually on her Navy 
2% (two per cent) of this value. France, with a valuation of 
forty-eight billion dollars, expends 1 3-10% (one and three-tenths 
per cent) on her navy. Germany, with forty; Italy, with fif- 
teen, and Russia, with thirty-two billion dollars total valuation, 
likewise expends for naval purposes a considerable portion of 
their national wealth each year. 

The United States, with a total wealth of 107 billions of dol- 
lars, expends one-tenth of one per cent annually for naval pur- 
poses, an expend"! t ire not only less, but tremendously smaller, 
than the expenditure of any other naval power .in the world, 
compared with our resource^. With this comparatively small 
expenditure, we are building one of the most efficient navies of 
the world as an economical proposition, as an insurance against 
war, as a preventive of war, to guard, uphold, and defend the 
wealth and peace and honor of this nation, a modern nation with 
a modern navy. 

"Wireless Telegraphy. 

Wireless telegraphy is of paramount importance to the Navy. 
necessary for the efficient and economical management of the 
fleets of the United States in time of peace, and their efficient 
manoeuvering in time of war. A supervisory control over the 
wireless telegraph work and stations of the United States* is ex- 
ercised by the Navy Department as being the executive depart- 
ment most in interest. An Tnter-Departmental "Board on Wireless 
Telegraphy, including representatives of the Departments of the 
Navy, War, Commerce and Labor, and Agriculture. ha c -- proHMfl**! 
for harmonious and efficient cooperation of all facilities of this 
kind, both in peace and war, at all stations of the United States 
both ashore and afloat. Our largest naval vessels are snjonpHed 
with the best apparatus and skilled operators. Two years ago, 
when the President was aboard the '"Louisiana" in the Gulf of 
Mexico, it was considered a remarkable achievement when that 



XAYY DEPARTMENT. 363 

vessel communicated by wireless telegraph with the Navy Yard 
station at Washington, I). C. The battleship fleet, under bear 
Admiral Evans, on March 6, 1908, then in position lat. 9° 00' N., 
long. 96° 45' West, off the west coast of Guatemala, .picked up 
communication by wireless telegraphy with Point Loma, Cali- 
fornia : Pehsacola and Key West, Florida, and New York, the 
greatest distance being about 2,200 miles. From this time on 
the fleet was in constant communication with the Nav} r Depart- 
ment through the naval wireless telegraph stations. 

Description of the Modern Battleship. 

The modern first-class battleship is a fighting machine of 
huge proportions and enormous power, offensive and defensive. 
A statement of its details will show some of the reasons for its 
great cost. 

Battleships like the ''Connecticut," the flagship of the Atlantic 
fleet, and her sisters, the "Louisiana," "Vermont." "Minnesota," 
and "Kansas" are 450 feet long, 77 feet in breadth, of 25 feet 
draft, 16,000 tons normal displacement and 18 knots (or 21 miles) 
speed. The larger ships authorized and now being rapidly con- 
structed are of 20.000 tons displacement. They are 510 feet long, 
85 feet in breadth, of 27 feet draft, 21 knots (24 miles) speed, 
with ten 12-inch rifles, fourteen 5-inch rifles, two submarine tor- 
pedo tubes, and numerous rapid-fire and machine guns. A crew 
of 55 officers and 878 men is required to operate the guns, en- 
gines and machinery of such a battleship, of 25.000 horse power, 
of railroad speed, fitted to burn b jth coal and oil under her boil- 
ers, carrying 2,500 tons of coal supply, and nearly 400 tons of 
fuel oil. These vessels will be able to steam from our Pacific 
coast to Manila without recoaling. 

The main armor belt — the heaviest armor of the ship — of 
strongest steel plates, with specially hardened faces, protects 
engines, boilers and magazines. A projectile passing through 
this armor belt would probably inflict greater damage than at 
any point above. Its position in our vessels is such as to pro- 
vide the greatest protection to the most vital parts of the ship. 
The secondary armor belt, above this main armor belt, furnishes 
protection as far as possible to the hull structure, the lighter 
battery, and its gunners. The heav r 3' 12-inch guns, their turrets, 
ammunition hoists, etc., are specially protected by armor practi- 
cally equal to the main belt. A projectile piercing the armor 
above the main armor belt would inflict much less injury than 
one piercing at or below the water line ; therefore, the thickest 
armor is placed at and more below than above the water line. In 
our newer battleships a load of CO to 70 tons sinks the ship about 
one inch in the water. The capacity of the "Louisiana's" coal 
bunkers is 2,400 long tons, corresponding to about three feet of 
immersion of the ship. The location of the main armor belt of 
our battleship is such as to secure the best possible protection 
to vital parts of the ship under average, or normal, conditions 
of load, and consequently of immersion. 

The opinions of our own and ^foreign designers and officers 
of greatest experience and distinction are in substantial agree- 
ment as to the location of the main armor belt on our ships. 
Indeed, if greater weight of armor could be added, the lower 
edge of the main armor belt would be placed lower rather than 
higher. It is the general opinion of those qualified to know that 
in personnel and material the Navy of the United States 'is not 
inferior to that of any foreign naval power, ship for ship of like 
age and tonnage. 

Power of a Modern 12-Inc»li Gun. 

It is forty-six years since the strictly American battle of the 
"Monitor" and "Merrimac" at Hampton Roads gave birth to 
modern navies. Since that battle, armor and guns haw been 
constantly improved in quality and strength ami power. Our 
naval 12-inch rifle, weighing over 00 tons, fires a steel projectile 
weighing 850 pounds, with a muzzle velocity of nearly 3.000 feet 
per second, and an energy of about 48,000 foot-tons. The work 
stored up in this single projectile, as it leaves the muzzle of tho 



364 NAVY DEPARTMENT. 

gun, is twice as great as the total energy in all the projectiles 
fired from our most powerful war vessels forty-six years ago. 
Forty-eight thousand foot tons represents the work required^to 
raise three 16,000-ton battleships one foot in one minute, or it is 
equal to the energy exerted by 48,000 tons falling one foot, or 
one ton falling 48,000 feet — nine miles. Its destructive effect is 
enormous, and it is to guard against this terrible projectile tha , 
the heaviest and most improved armor is employed. 

It is the opinion of some of the most distinguished foreign 
authorities that our most recent designs of battleships now 
under construction are distinctly superior to the famous British 
"Dreadnought," the mpst recent British type, and the latest re- 
ports indicate that Great Britain is considering the development 
of new designs to surpass the "Dreadnought" and its successors 
of the same type. 

The History ©f our New Navy — Twenty-Five Years of Develop- 
ment ana the Result*— the Cost. 

The history of the new navy was clearly and tersely told by 
Hon. George Edward Foss in an address on the naval appropria- 
tion bill on x\pril 10, 1903, as follows: 

We have recommended the building of two battleships of 20,030 tens 
each. They will cost in the neighborhood of $10,000,000 each. In addition 
to that we have recommended the construction of ten torpedo-boat destroyers, 
each to cost about $800,000, and eight submarines — a naval programme 
which will cost In the neighborhood of $30,000,000, a little less than one- 
half of that which is recommended by the Secretary of the Navy and the 
General Board. 

Mr. Chairman, I desire now to speak a little upon the cost of our 
navy. This i6 a great year in the history of the new navy. It was twenty- 
five years age that we started is to build up the new navy under the ad- 
ministration ef Pre&ident Arthur. March 3, 1883, was the birthday of the 
new navy. That year, «t that time, we authorized the Atlanta, the Bos- 
ton, the Chicago, and the Dolphin, sometimes called the A, B, C, and D of 
the new aavy. Stnee th?.t time we have been going on, year after year, 
building cruisers, battleships, and destroyera, until today we have a good 
navy. Now, it may interest some ef the members of this House to know 
how much this navy has cost, hew much we have expended in the con- 
struction of these ships.. The cost o*f all these battleships which we have 
authorized amounts to $309,000,000. We have appropriated for the navy 
during the last twenty-five years $1,244,657,000. Of this, as I say, $309,- 
000,000 have gone into the construction of the new ships, leaving a 
balance of $935,000,000, which have gone to the maintenance of the naval 
establishment during the last twenty-five years. This has been an average 
per year of $37,000,000 for maintenance. This is what the new navy has 
cost us. 

March 3 as I said, 188S, was the birthday of the new navy. We . 
started in then t* build our first new ships, which were cruisers, but it was 
not until lb'90 that we authorized the first battleship, which was the 
Indiana. That battleship had a tonnage of 10,228 tons. Its freeboard was 
about 11 feet and 6 Inches. It has armer plate upon its sides 18 inches 
thick. Its speed wag .less tham 16 knots. That was the first battleship 
that Congress autmariaea, and it cost ia the neighborhood of about 
$6,000,000. 

Today we are building greater battleships— two of them, the' Dela- 
ware and the North Dakota. They have each a tonnage of 30,000 tons. 
The armor plate upon their sides is only 9 inches thick, bwt better armor, 
and their freeboards are much higher — twice a6 high as those of the In- 
diana — all ef which goes to show that during the last eighteen years there 
has been, a mighty and tremendous development in the construction of the 
American battleship. The guns upon the Indiana were built to fire only 
once every five minutes, but upon the new battleships the large guns, the 
12-inch guns, will each fire twice every minute if necessary. In fact, there 
is hardly anything which the hand of man has contrived during the last 
twenty-five years which has undergone such a tremendous revolution and . 
change as the great battleship, the instrument of warfare, the instrument 
of the nation's defense. If you look at the character of our baftleships 
first authorized by Congress and as we authorize them today, you will be 
struck by the fact that they illustrate the policy of Congress. The Indi- 
ana has a low freeboard of about 11 feet and 6 inches. What was the 
idea of the navy b*ck at the time when the Indiana was built? Then we 
were building up this navy, but not with the idea of an aggressive navy. 
It was a navy of defense, and up to the time of the Spanish-American War 
■ — yes, up to the time of the naval appropriation bill of 1900 — every author- 
ization for an American battleship carried these words, "coast-line battle- 
ship." The policy of Congress had been, up to 1900, to build up what? 
A navy for defense, a navy to hug the shore line, a aavy to defend the coast 
line. But the Spanish American war came on and it opened up a larger 
door of greater opportunity to this country. Then the policy of the Am- 
erican Na.vy and of Congress changed. What has it been from that time 
on ? To build up a navy for defense ; yes, but in recognition of another 
principle, that the best defense is the ability to make an aggressive of- 
fense; and so, from 1900, in every appropriation bill authorizing the build- 
ing of an American battleship you wiH find those words "coast line'' stricken 
out, and the authorization Teads, "a seagoing battleship" — a battleship 
eapable of fighting the enemy ont on the high seas and not simply defend- 
ing the coast line. So we have been building up this navy upon that theory 
since 1900 — a navy for defense; yes, and a ativy for offense if necessary. 




NAVT DEPARTMENT. 



The Trip to the Pacific and its Value. 



365 



Now, Mr. Chairman, a few months ago, when the President of the 
United States gave the order that sent the fleet around the Horn out into 
the Pacific, we # heard a great deal of criticism from the public press, 
particularly in the vicinity of New York. The fleet has passed around 
the Horn out into the Pacific and we hear no criticism now. A fk<t of 
sixteen battleships, aggregating 223,000 tons, commanded and officered by 
14,000 men, the greatest fleet of recent years, which could be duplicated 
only by England herself, has passed safely from the Atlantic around into 
the Pacific. We had criticism a few month ago ; we have none now 
because everybody recognizes that it was a good order which the President 
made. What use is it to build i p ships unless we have them in fleet 
formation? What use is it to build up a navy unless we send that navy 
out on long cruises where the men can be properly disciplined and trained? 
What do you think Rodjostvensky would kave given if he could have made 
the cruise from Cronstadt to Tsushima ia time of peace before he was 
compelled to do so iu time of war? Do you not think his fleet would 
have been in better condition to meet the enemy ia the Sea of Japan if 
he hrd made the cruise at least ence before in time of peace. This cruise 
of the American fleet around the Horn kas been vury profitable to the 
American Navy, becauce it has disciplined and trained our personnel and 
our officers. They hare been able to unci out the weaknesses iu our per- 
sonnel, if any exist, and not only that, but it has been of great benefit 
also to the material of the American navy. They have learned whether 
cur ships were good for anything or not, and the word Just coming back 
to us from Msgdalena Bay has been that our ships were even better than 
when they started on the cruise and the personnel more highly trained 
and better disciplined than when they first set sail from Hampton Roads. 

Another thing which this cruise has called to the attention of the 
American people is that the American Navy is a national institution; 
that we are building up a navy for the protection of the Pacific as well 
as the Atlantic ; that we are a two-oceans country ; and necessarily, if the 
American Navy is t© be the instrument of our national defense, we must 
have a two-ocean navy — a fleet upon the Pacific as well as a fleet upon the 
Atlantic. [Applause.] 

This cruise of the Navy into the Pacific h?.s called the attention of 
the country to another important thing. Wherever that fleet, ha; gone 
it has been met at every port with the hospitality and the cordiality for 
which the people of the South American countries ar« famous. It has 
tended to cement in closer bonds the relations between our country and 
the South American Republics. It has given force and efficacy to the 
woids, of our able Secretary of State, who made a visit to the leading 
Republics, of South America a few months ago, and it has bound those 
Republics to us by closer tie.? thaa amy single thing whish could have 
happened, 

The people of South America recogaize that we are bouad together 
in one comman destiny, and that the American Navy and the American 
people propose te maintain and uphold the Monroe Doctrin* and kave the 
ability to, do so. Not only kas the cruise be«n beneficial in that respect, 
but, Mr. Chairman, it has called the attention ©f the country also to the 
fact that we are moving westward in our national development. All our 
history has been along the shores of the Atlantic. Our war for national 
independence and our war for the freedom of the seas have been largely 
along the shores of the Atlantic. But we are passing now in our national 
dev.elopm.ent from the Atlantic westward to the Pacific. We arc beginning 
to realize what William H. Seward said on the floor of the American. 
Senate fifty years ago, that the Pacific Ocean, its islands and it^ shores 
and the great region beyond would some day be the chief theatre of 
events in the world's great hereafter. 



Naval Strength. 

The naval strength of Great Britian is 58 battleships and 38 cruisers, 
her battleships averaging 14,900 tons. The United States has 29 battle- 
ships and 15 cruisers, our battleships averaging J4.0Q0 tons. Frame, with 
27 battleships and 23 cruisers*, has battleships averaging !."■;, t>C7 tons. 
Germany's 28 battleships average 12,820 tons. Japan's 15 battleships aver- 
age 15 467 tons, nearly 1,100 tons heavier vessels, on an average, than 
our heaviest 15 battleships now in the Pacific. The relative naval strength 
of the United States in battleships and armored eruiswrs is second only to 
Great Britian. The total tonnage of battleships and armored cruisers 
as compiled by Mr. Pitman Pulsifer in the Navy Year Book, P>07, is as 
follows : 



. — 1 


r 

Battleships. 


Cruisers. 


Totals 




No. 


Tonnage. 


No. 

38 
i:> 
S3 
10 

14 

• 
10 
i 


Tonnage. 


No 


Tonnage. 


Great Britain 


58 
29 
27 
28 
15 
16 
12 
6 


867,200 
406.116 
369,233 
859,568 
882.841 
210,899 
168, Si6 
73.S0O 


1S6.545 
2*0,982 
113,52$ 
158,311 
68.168 
78,513 
19,020 


96 
44 
50 
38 
I 

g 

9 




France 
















Italy 













The addition of the larger battleships, for two of which the preceding 
Congress has appropriated, will rapidly increase our average tonnag 
battleship. 



866 



NAVY DEPARTMENT. 



I! 






3 o 



T? Eh 



1 Z 



eii 


rji 


ct 


S 






-o 


Eh 






3 




» 


6 



m 





bib 




a 


3 


2 ! 


3 


3 


02 


aa 



So o a © 
JIO'OOOWTM 
W CO CO -" i-h CO — 



"O CO X'M!(D M 



lO ■* lO l~- rH I 



sss 



OOOOOt-aO-*N< 
in N Ol H iv IO M CIS ( 
CO 0O 00 CO -jfcO Ob C©" 

innOHMHH 



'SS' 



CO i O H^ 

Oi l CN l CD 

tC I if} i i-T 

Ob I M I'M 



CD 1^- 3b 

3 co X) 



tO M « lO CO I 



ass 

CO CM OJ 



co -f ino 

rH CO Ob 60 
■>* »fl (M CO 



O 00 o ip oo 
00 ■+ «) ffl N 



LPHHlflNCOCOMIN 
OlrHi-l >H rH i-H CO t-< 



GO Ob CM 



8S3; 



32g©S 

>o u^ o CM <M 



N* ©-)■ »N O C-i -f t- 
IN CO N Ol m CM H IN 



HH"*lO' 



Ob X CN 

OOHCO 

ooco"io 



O © IC CO 00 
» N CJ 00 p 
coco o& H« 



1 V CO 



3.5 



ill! 

pill 



'5 bo 

c*2 



dj O 



: 1 1 r"S 2 o *» 

! «j g a a, 2 H 
I g S x 2-° 
i s- *h O O g 

'OOHEHdQ 



la 
_, m 

2 s 

o 

Eh 



>»«3 

ST3 



•si 

5 o 



II 



8* 




Oat - ~ - : ^ 

« H w s o 3 «a . 8 a 

111 ««-!.§ £ i 

C0r5i"?.2 ** £ So ^ * "^ 
cetj^bbt J, "-^JJ 

cuts C« M a<»^ 

o 



NAVY DEPARTMENT, 
Relative order of war ship tonnage. 



367 



At present. 




As would be the oase wiere vessels 
building now complete. 


Nation. 


Tonnage. 


"Nation. 


Tonnage. 


flrent Britain ... 


1,655,075 
670,596 

611, 15.: 
523,053 
368,665 
240,91:-! 
220,303 
- 114,250 


Great Britain 


1 '8,35 J 


Uniiod States 


France _ __ __ 


281 ,778 




United States . 


320,010 




444,903 


Japan.. .__.-_ 


Japan 


706,138 




Itaiy . . 




T:)-.,^ 




Austria 


1,85:1,174 





Appropriations for the naval establishment since the beginning 
of the new Navy. 



Year aud Congress. 



14P3 (17-2X 

issi ()8-d_ 

1885 (48-2) _ 
1S86 (49-1): 
18S7 (49-2J: 
1888 (50-1) . 
18S9 (50-2). 

1890 (51-1): 

1891 (51-2). 
18D2 (52-1), 
1893 (52-2). 
189 4 (53-2): 

1895 (53-3). 

1896 (54-lj): 

1897 (5.5-1). 

1898 (.55-2). 
1S99 (5.5-3). 

1900 (56-1). 

1901 (56-2). 

1902 (57-1). 

1903 (57-2). 
1901 (58-2). 
1905 (58-3). 
1806 (59-1) _ 
1$K>7 (59-2). 
190S (60-1). 

Total 



-Annual. 



,S1 > 
394 
,980 

,070 

; 189 

.707 
,942 
,002 
,136 
, 5-11 
.5 0-; 
,0V 
.827 
. 116 
;562 
,008 
,09S 
;099 

,no 

,101 
,87(3 
. 505 

,093 

,998 

.662 



,978.80 
,431.23 
,472.59 
,837.95 
,907.20 
,348.19 
,835.35 
,510.27 
,035.53 
.651.78 
.385.00 
,061.38 
,126.72 
,215.31 
,660.95 
,231.19 
,783.08 
,969.58 
,913.67 
,701.00 
,791.43 
,140.94 
,679.94 
,670.37 
,507.50 
,485.47 



1,215,165,462.92 



Additional. 



Total 



$588,860.79 
1,272,! 17. 12 

981,8i2.:;3 



496 
2,208 

573 
1,193 

123 
67 

290 

148 
1,199 

658 
92,298 
6,449 
5,182 
4,875 
&.2S0 
2,795 
6,127 
15,081 
2,417 

734 
.7,333 



,300.57 
,152.03 
,573.35 
.8S6.47 
,105.92 
,872.99 
,063.61 
,235.85 
,469.12 
,233.62 
,741.59 
,009.38 
,801.32 
.858.78 
,760.80 
,257.30 
,974.16 
,317.81 
,019.. 56 
,700.82 
,521.60 



sli |19v 
lo,7&2, 
16,252, 
16,052, 
16,189, 
26,263, 
22,150, 
22,216, 
25,329, 
31,661, 
38,1111, 
22,391, 
25,475, 
30,615, 
31,220. 
125,301, 
62.517, 
53,582, 
69,516, 
84,382, 
84,672, 
103,638, 
115.120, 
101,508, 
90,698. 
120, 996, 



976.80 

0;5.02 

fcft.Ol 

(J5>.88 
Mi .20 
054.76 
987.38 
063.62 
922.00 
850.70 
257.09 
124.99 
362.57 
714.48 
8 '4.57 
075.78 
703.06 
770.90 
7.5.45 
551.. 80 
018.73 
115.40 
!)>7.7R 
719.93 
2 18 . 32 
0>7.07 



159,481,580.09 1,374,647,0 '.7.01 



Tlje "nd.! "it >■:!•• apnoniation for 1896 was appropriated in two sessions of 
Congress— (5 1-1) and (51-2). 

The "additional" appropriation for 1898 includes $50,000,000, which was appro- 
priated for "national defense." 



The United States has not the slightest wish to establish a 
universal protectorate over other American States, or to be- 
come responsible for their misdeeds.— From President Roose- 
velt's The Monroe Doctrine, American Ideals, p. 24S. 

Nothing strikes a deadlier blow at liberty than the In- 
sidious appeals made in her name in times of public exclte- 
ment.— Postmaster-General Cortelyou on Lincoln's Influen ce 
on American Life. 



"We ask for a great navy, we ask for an armament lit for 
the nation's need*, not primarily to tight, but to avert light- 
ing. Preparedness deters the foe and maintains right by the 
show of ready might without the use of violence— From 
President Roosevelt's "Washington's forgotten maxim," 
American' Ideals, p. 2SS. 

Protection saves to the world the useless expense and 
labor of shipping products from one country to another mid 
turns these into productive sources of wealth.— Judge \> II- 
llnm tmvr'oiicc, of Ohio, In the American Economist. 

Pia-is hnve been suggested for the migration of the ne- 
groes >o seine other country, where they would live by them- 
selves 'and grow up by themselves, aud have a soeict> by 
themselves, and create a nation by themselves. Such u sug- 
gestion Is chimerical. The negro has no desire to go, mid 
the people of the South would seriously object to hi* going. 
—Hon. Wni. U. Taft, at Plymouth Church, Brooklyn. 



S«8 



NAVY DEPARTMENT. 



Summary of ^vessels in the United States Navy June SO, 1908. 


Type. 


Fit for 
service, 
Including 
those un- 
der repair. 


Under 
con- 
si ruc- 
tion. 

4 


Author- 
ized. 


Unfit 
for sea 
service. 


Total. 


First-class battleships... 


25 
1 

12 
1 

4 
6 
22 
3 
3 
9 


2 


— 


31 


Second-class battleships 


1 










12 










1 


Single - turret harbor - defense 








4 










* 6 










22 


Unprotected cruisers. 1 








s 










8 










9 


Gunboat for Great Lakes (not 
begun) 




1 




1 


Light-draft gunboats 


3 
8 

1 
2 
1 

2 

12 

16 

35 

1 

12 

3 

5 

5 

42 

5 

22 

15 

10 

1 

5 

2 






s 










g 


Training ship (Naval Acad- 
emy), sheathed 








1 


Training ships 








2 


Training brigantine 








1 


Special class (Dolphin, Ve- 
suvius) 








2 


Gunboats under 500 tons 








12 


Torpedo-boat destroyers 


5 


_.„ 




31 


Steel torpedo boats 




35 


Wooden torpedo boats 








1 


Submarine torpedo boats _ 


7 


8 




27 


Iron cruising vessels, steam __ 




3 


Wooden cruising vessels, steam. 
Wooden sailing vessels 






4 
2 


9 






7 


Tugs _ 


2 




44 


Auxiliary cruisers 






5 


Converted yachts 




• 




22 


Colliers .. 


2 


5 




22 


Transports and supply ships.. 




10 


Hospital ship 








1 


Receiving ships 






5 
1 


10 


Prison ships 






3 










Total 


294 


20 


26 


12 


352 







Expenditures on vessels under construction to March 31 A 1908. 



Michigan 


$2,768,430.65 

3,098,597.62 

1,443,470.31 

1,383,937.09 

4,386,178.3 

925,090.08 

373,098.12 

112, 211. 6\ 

102,620.07 

204,924.16 

191, 4.H 

1,568,620.03 

1,433,977.08 

1,433,327.32 

34,500.71 


Torpedo-boat destroyer 
No. 18 






$5,375.74 


Delaware 


Torpedo-boat destroyer 
No. 19 


38,013.38 


Montana 


Torpedo-boat destroyer 
No. 20 _. _ -_ 




Vestal— 


95,286.52 




Torpedo-boat destroyer 
No. 21 . .._ 




Patapsco __ 


95,169.00 


Patuxent 


Submarine torpedo boats 
Cuttle Fish 


337,262.31 




150,908.18 


Viper.. 

Chester 

Birmingham 


Tarantula.. 

Cumberland 

Intrepid 

Total 


177,216.86 
452,247.69 
403,930.31 






Torpedo-boat destroyer 
No. 17 


21,214,886.50 



Amount expended under increase of the Navy appropriations on all vessels 
other than those above named (including $2,500,000, approximate cost of 
equipage of monitors and torpedo boats), $45,500,721.20. 



The present business system of the country rests on the 
protective tariff and any attempt to change it to a free 
trade basis will certainly lead to disaster.— Hon. Wm. H. Taft, 
at Columbus, Ohio. 

The representative government that has served us well 
for 130 years has not been for Mr. Bryan sufficiently ex- 
pressive of the will of the people. We must call upon four- 
teen million electors to legislate directly. Could any more 
burdensome or inefficient method be devised than this? J 
believe that the referendum under certain conditions and 
limitations in the subdivisions of a State on certain issues 
may be healthful and useful, but as applied to our national 
government it is entirely impracticable.— Hon. Wm. H. Taft, 
at Columbus, Ohio. 



STATE] 



NAV7 DEPARTMENT. 



Cost of all vessels of the new Navy. 



369 



ATEMENT SHOWING COST OF EACH COMPLETED BATTLESHIP, 
ARMORED CRUISER, PROTECTED CRUISER. AND UNPROTECTED 
CRUISER BUILT UNDER APPROPRIATIONS FOR INCREASE OF THE 
NAVY TO MARCH 31. 1908. 



BATTLESHIPS (26). 

Texas 

Indiana 

Massachusetts 

Oregon 

Iowa 

Kearsarge 

Kentucky 

Alabama 

"Wisconsin 

Illinois 

Maine _. 

Missouri 

Ohio 

Connecticut 

Kansas 

Louisiana 

Minnesota 

Vermont 

Georgia 

Nebraska . 

New Jersey 

Rhode Island 

Virginia 

New Hampshire 

Idaho , 

Mississippi 

Total 

ARMORED CRUISERS (11). 

Brooklyn 

New York 

Colorado 

Pennsylvania 

Maryland 

West Virginia 

Tennessee 

Washington 

California _ 

North Carolina- 

South Dakota 

Total 

PROTECTED CRUISERS (IS). 

Newark 

Baltimore 

Philadelphia 

Snn Francisco 

O'ympia 

Cincinnati 

Raleigh 

Columbia 

Minneapolis 

Tacoma 

Cleveland 

Denver , 

Des Moines 

Chattanooga 

Charleston 

Galveston 

Milwaukee-.. _ 

St. Louis 

Total.-. 

UNPROTECTED CRUISERS (H) 

Marblehead 

Montgomery 

Detroit 

Total 



Hull and mi 

chlnery, 

in Judiug 

armor. 



,633,281.99 
,338, 703.05 

,401,811.97 
,911,021.90 
,162,587.12 
429,890.69 
418,0)1.99 
077,010.09 
162,617.53 
073, ',29.26 
566,618.69 
438,925.08 
475,180.32 
36!), 2 H. 26 
163.3f0.69 
052,621.18 
127,0J2.d3 
135,763.15 
538,776.57 
606,027.91 
366,355.21 
343,150.55 
483,089.56 
140,130.42 
351,092.64 
438,778.19 



Equipage In- 
cluding 
armament. 



$563,836.50 
619,663.93 

61: 



132,207,513.65 



3,914 
3,897 
4,831 
1,555 
1,874 
4.8S5 
5,193 
5,190 
4,678 
4,431 
4,617 



,820.73 
.840.32 
,408.00 
,881.02 
,500.11 
,072.48 
,678.07 
,650.60 
,033.32 
,159.50 
,314.24 



51, 433, 70S. 69 



1,439 
1,554 
1,561 
1,738 
2,484 
2,023 
1,867 
3,461 
3,403 
1,113 
1,098 
1,135 
1,156 
L.JJ78 
3.117 
1 , 126 
-S . 171 
3,173 



,3-32.20 
,483.94 
.392.47 
,257.82 
,027.51 
,326.91 
,931.32 
,1)60.26 
,707.07 
,395.45 
,320.33 
,853.66 
,256.«8 
.{(5.75 
,231.16 
,850.78 

,321.35 



36,30.5,822. 17 



t ,061,426. SO 
1,060,933.51 

1.001,711.65 



3,117,071.4;) 



613 

580 

588 

531 

547 

814 

81V 

790 

1,323. 

1,181. 

1,282 

1,089 

1,299, 

985. 

1,040. 

1,072 

1,092, 

1,051, 

al.250, 

al,000, 

al,000, 



,272.98 
,010.86 
,619.20 
,700.99 
,921.44 
810.13 
276.75 
979.56 
439.09 
335.47 
129.39 
S75.12 
748.68 
962.33 
151.46 
984.88 
731.30 
468.56 
922.98 
023.88 
993.05 
090.00 
009.00 
000.00 



Total 



$4,202 
5,983 
6,017 
6,575 
5,871 
5,013 
4,998 
4,665 
4,723 
4,621 
5,381 
5,258 
5,205 
7,693. 
7,347 
7,335 
7,216 
7,435 
6,524 
6,616 
6,439, 
6,453, 
6,535. 
6,390, 
5,351! 
5,438! 



,121.49 

,371.98 
,117.95 
,032.76 
,206.32 
,591.68 
,119.43 
,820.22 
,891.28 
,408.82 
,081.78 
,260.55 
,309.71 
,119.38 
,129.37 
,586.49 
,544.09 
,748.03 
,507.87 
,496.50 
,278.19 
,474.43 
082.61 
130.42 
,092.64 
,778.19 



23,218,261.53 : 155,425,805.18 



47S.969.36 

418,802.07 : 

860,201.59 

850, t93,6i 

808,019.89 

8h3,8i0.85 

950,755.36 

955,519.36 

a950,000.O0 

a959,OO0.OO 

a850, 000.00 



8,846,602.13 



390,735.00 
422,215.41 
397,267.91 
397,045.49 
495,255.81 
348,577.61 
•331,795.48 
447, 051. 00 
446,280.37 
2>5.3S!.30 
276,488.77 
278,911.08 
261,991.71 
308,148.45 
661.176.84 
309,923.50 
600. S3J. 33 
6 11,40s. 09 



7,374,388.21 



674,241.05 



4,423 
4,346 
5,691 
5,700 
5,6S2 
5,728 
6,144 
6,018 
5,528 
5,384 
5,497 



,790.00 
,612.39 
,609.59 
,374.67 
,520.00 
,913.33 
,433.43 
,625.90 
,483.32 
,459.80 
,314.24 



60.280,310. 



1,830,117.20 
1,976,729.35 
1,958,660.38 
2,135,303.31 



2,371 
2,199; 
3,909 
3,849, 
1,398; 
1,374 
1,414, 
1,426, 
1,686, 
3,781, 
1.736, 
8,832, 
3,817, 



904.52 
729.80 
011.26 
996.44 
781.75 
809.10 
767.74 
101.42 
594.20 
411.00 
774.23 
.502.86 
732.44 



43.080,210.38 



1,291,162.93 
1,267.100.71 
1,233,039.90 



3.791,812.54 



a Estimated. 



WORK OF THE POST OFFICE DEPART 

MENT. 



The business of the Post Office Department is a reliable index 
to the general condition of the country and the postal receipts' 
for the last fifteen years show conclusively that our people have 
been prosperous and our business more active since the return 
of the Republican party to power than ever before in the his- 
tory of the country. The following table gives the figures of 
receipts for the years indicated : 

(Dem.) 1893 $75,836,933.16 

(Dem.) 1894 • 75,080,479.04 

(Dem.) 1895 70,983,128.19 

(Dem.) 1896 82,499.208.40 

(Dem.) 1897 82,665,462.73 

1898 89,012,618.55 

1899. 95,021,384.17 

1900. 102,354.379.29 

1901. 111,631,193.39 

1902 121,848.047.26 

1903 134.224,T43.24 

1904 143,582,624.34 

1905 152,826,585.10 

1906. 167.932,782.95 

1907 183,585,005.57 

The increase of nearly $108,000,000.00 in fifteen years shows 
a truly marvelous development. 

Rural Delivery. 

The responsibility for the permanent introduction of the 
wonderful system of delivery of mail to rural communities in 
the United States- belongs to the administration of President 
MeKinley and its continuation and remarkable development to 
the administration of Roosevelt. The service is now in opera- 
tion on 39,270 routes, serving 16,000,000 people. 

In 804 counties the service is so complete that all of the 
people outside of cities can receive their mail by rural letter 
carriers. 

During the fiscal year beginning' July 1, 1908, the cost of the 
service will exceed $35,500,000. 

The material benefits which it has brought to rural com- 
munities are incalculable. Subscriptions to newspapers, both 
local and metropolitan, have increased enormously, and farm- 
ers are able to keep advised of the daily market quotations and 
to sell their products to the best advantage. The increased cir- 
culation of newspapers and periodicals has made the service of 
great educational value, broadening the minds of the people 
through a better knowledge of the affairs of the outside world 
and engendering a desire for intellectual development. As a 
further result of the installation of the rural delivery service 
thousands of miles of roads have been improved, thus increasing 
farm values in some cases twenty-five per cent. Xo other agency 
has contributed so largely to making farm life more attractive. 

The Investigations and Their Result. 

None of the reforms following the investigation of 1903 was 
more important or resulted in greater benefit to the general 
public than that which was effected in the office of the Assistant 
Attorney General, in pursuance of which many hundreds of 
. frai dulent schemes and lottery enterprises have been suppressed. 
Most of these schemes had grown up and flourished in conse- 
quence of the failure to enforce the statutes authorizing their 
suppression, and through their operation losses aggreg&tirior 
many millions of dollars were annually suffered by people of 
small or moderate means and to whom such losses meant pe- 
culiar hardship. The strict and systematic enforcement of the 

370 . 






POST OFFICE DEPARTMENT. :ni 

statutes empowering- the Postmaster General to exclude from 
the mails matter of every kind relating to fraudulent schemes 
and lotteries and to withhold from delivery mail addressed to 
persons or concerns carrying on such enterprises, has reduced 
the number of such schemes to the minimum and protected the 
public from enormous losses. 

Millions Saved. In Mail Transportation. 

The pay for railroad mail service is fixed by statute and 
based upon the average daily weight of mails. 

Since 1873 it had been the uniform practice to use the number 
of week days in the weighing period as the divisor for determin- 
ing the avera^j daily weight in accordance with the construc- 
tion put upon the words "working days." Postmaster General 
Meyer issued an order on June 7, 1907, following one issued 
in March, 1907, by Postmaster-General Cortelyou, having the 
same object in view, which provided that the whole number of 
days included in the weighing period *should be used as a divisor 
for obtaining the average weight per day. It is estimated that 
the saving will approximate $4,619,285 annually. 

From October 1, 1908, the letter postage between this country 
and England, Ireland, Scotland, and Wales is two cents an ounce 
instead of 5 cents an ounce. This reduction is expected to re- 
sult ultimately in an increase of receipts because it has always 
been found that a reduction of the letter rate resulted finally 
in increasing the revenue. The lower postage will lead also to 
freer commercial intercourse. Our manufacturers are increasing 
their sales in the United Kingdom and must rely to a great 
extent upon the mails for orders and additional trade. Further, 
it will be a great boon to our adopted English-speaking citizens 
and their connections in this country, particularly those of 
limited means, as it will enable them to keep up correspondence 
with their relations and friends in the old countries at do- 
mestic rates. 

Postal Saving-s Banks. 

The leading governments of the world have postal savings 
banks, with the exception of the United States and Germany, the 
latter country, however, having a splendid system of municipal 
savings banks. Since 1872 the introduction of such a service has 
been discussed in the United States, and the measure now before 
Congress which was favorably reported on by the Senate Commit- 
tee on Post Offices and Post Roads will become a law at the next 
session. Its enactment is desired in order to encourage economy 
and thrift among the wage-earners and people of moderate 
means, and to afford a place of deposit, free from any possibility 
of doubt or suspicion, for small savings, which in the aggregate 
amount to vast sums of money and which are other w rise hoarded 
and kept out of circulation through ignorance or lack of confi- 
dence. 

More than seven million immigrants landed in this country 
during the last ten years, and nearly a hundred million dollars 
were sent out of the country last year by these people. In many 
instances it has been found that, for want of postal savings 
banks, money orders are being bought payable to the purchaser, 
good for one year. 

Improved Conditions. 

It has been the aim of the Post Office Department to improve 
the conditions under which its employees work, namely: 

By shortening the hours of labor. 

By basing promotions entirely on merit rather than favorit- 
ism, and by securing legislation that provides for annual increases 
in salaries as the employees prove their worth. 

The postal service itself has been further improved by the in- 
troduction of better business methods. Without materially in- 
creasing the expense, the Department has secured more eommndi- 
ous and better equipped post office quarters throughout the coun- 
try, to the greater convenience oi the people and advantage to 
the service. 

Appointment of Postmasters. 

The policy of retaining in office postmasters who are perform- 
ing their duties satisfactorily has resulted in improving the effi- 
ciency of the service. 



3T8 



POST OFFICE DEPARTMENT. 



is c8 d 
S a>, « d 



!T3 S 1 

a^s-s 
^a 









OlM»00 0Bl^»O| 



O rH 8] 83*35.10 00 © >J3£ 8 ^ CO 8> S5 5 ^ -r ' S 8 S 
-* ■«* tO 00OMNO03HtDNlMv0H-*O00i?MMji 

coeoeow'ti-tTjiia^ioioia co'co i> f. oo oo © o i-hcm 



WOQOOWNHMiOSHOeiOOCO-tfMinONOOH 
' >a X W I- H M r fl T» M IS 00 H N (B N H H N M » <M !D H 
iWMOMlSHttNOO-ti^OMNNOe^aHOOON 



HMXn-*©N-1iNOONO 



^-"cooaianoonoHNfflc 

£3 52 52 t S c0 cs so co -m 55 -h a o »<* oo - . 

6©-© ■*XHONC!N-tHC<ONO'.OOlOIMNNOaNlS 



>'ls. Si8 10 r-l -« < 

sa.NWiroo 

rHrHr-lr-lrHi-(rHrHiHi~liHi-li-IO<l(NCO-<*<-»tf5CQ0 



fr-l uu u.t r— I r.-j ^j r 
rH iH CM 00 © lO < 

lOCO l 
© -* ( 



-HaOOltOHNOl'-NCOl 

conSinn^h$xik 



Q-JHNOOCNOi 

in ir> th «o -f 

co oo oo -* to © co 



KMOtoma 



NOOOOOlS 



HtOHr-OOOJiCI 
. . N-lilS(MNOHI 



^5^2^COI^©lO^©©I^00©CM^r-HT-l00-*COC000<p-r( 

=©-00 NO>HHHHHHH(N(NeaLBNNaH«iNi-|iaNCl^| 

HHHHrtHHi- Ii-Ii-Ht— IHHHHNNNCOMMn-* - 



S a 

OS +> 

"i 8. 






£-d 



-*-> 01) 



Sill 



£33 
38 



ntDNHCJltOHNTXO-«HfflMO(M 
HlOiMN<OCDXOO!HiaXM06(N'M -i- . 
ISNN-*HMO(06-*1SO«OINCJOP 



HOMON-ffl 
OOMjNCO-* 

IT •* H 06 H ■+ tt 



O(0M«t(i.HNNOHO«»ci)O!DeniHHMOiaia 
a-*-*NNg-*-*mtom«Sioo'JD'MHmieHo<ois 

SOa* CO © © ON100-*HintOO-tiOO»QIM«r'N 

«3HH!NM-*-tnnioir5w*in'<jii^(oxON'OOOQ-<'oe 



TinuomomooOvOooSinixiNiPoo-'toMi'ifificio 

CO lO -f /)NWO CM -* -h (^ -« -j - , r © w -yi ^ 55 cj j) t» m O N H N 

B-ti'*to3)aiHiaHajOMNonx-*oo-«ooicffl'*oi- < i>. -<n in 
oc»Xr- | r-ifM-"ioco ^ >? c<s <s c<> ao ~# r* m oo r* •* &i i~? a v> ataxia 

1: i ri l 2 X w x 2 N 2 M 9 ^ s l - o] '-t - - " ' " ' - "* « i ^ o n 

....... Hffl NiSiSiN«^-*(Oec5inNO>NfttiC0X 

3!^2S^I Lni 2^ :> 52 f r rH01 '^ i: o < 5'^''> ioeo hood oo © © cm t~ co 
a<ico^co^-r<oi^o5o<Mcoua>i^cot.-©©^^©cMtocMcot>cM© 



I (M (M CM f>l rM aa CO ( 



) CO -**<■«*• lO l 



5" 



rH & ft ft r- 5-1 ~; CO I- 00 « CO r>3 I- rH ( 



O 00 o co >o -* 1 < 

H-fHiiQrtl 
HlOWOOH-ti 



■ CM l- CO "? 00 ' 



M IN K5 H N I 



Eco u"* O CM 00 t-i "39 -* OO rH a-l co -* cp in i^ o © O ■* -* <3> co i^ co aM © ~ CM -* co © © oo 
N^T-i©i^a>}T^toftcoio©©©^cOcM©f5©Wt>to©©cOi^©cor-c7$co^eM 



!3o5coco§tnSiric3c8t^i^-oooboo? 



oo i~i i-- ir -n 



ooooHiNrtirttoN 



o* iH to i 



c» d 

.», CD *^ 

OB S (_. 

o 5 



aB«OiaiSOC!lH<NMi<M-«2)HOOr.-*O^HS5©MlSHO-f!SlSNO 

t-T©"' CNi-Tq CO rMarTc© CM*" r-TlO ©"go js?lO lO IN"r-To CO ©~C0 © lO <N i-l -H r-T 06 "* CM CO CN lO 

€©-cm i/5HXiSiniBiai-»NMiSO06c4HJ0a©c6O«)-*c5OOM<0x«i?Swou5 

HHT((U5Xi<ffitOmWMX^ltDQiap««COfNNOiaWHH-«Cl5NN« 

THrHo<ico^^^iouaicOto^^r^t~cVooooboOi-ie<icO'tiiocooO 






! 00 rH CO r-' 

) -Hh o l^ O 
r-( CO CM CO 



*H!OONN 

Sc5coeoco 



»^a 

3! » tJ 



ScOCOcO-^cocOcocOiOCOiO-^COioiOcO" 
NN^ooiHONOKi-'oooH'ami 

ON-*t »01fMQNN'*0»-1"1 , C>0! 



S-'SHiOMaNOB'I'HN 
iatMNca-(<NlflJDiaNHO-* 

O-ti^cOXNOfflceiniaiPN 



§OH-*cc-*ai!Doe-*HHH©coNaofflo6Q«q'*iBatic<5iftMiau; 
MiasOO»M^OONO : +MO'*MOMaOCONSHfNHiSaHI^ 



I CM CM CM CO CO CO CO i 



KNOo^moicfMiaoiO' 

'OOC-ieO^lStDNOOHH! 

i-*-*-*T(<'<*(M<' ; *'«*^ua)ioua>i 



OS w 

^15 



lONfflN©ON-«QNMXHON!OOONHM(0!DMWHC60XOI»MirH' 
"TN3HOHa6in»1^0WO'<|IOOXlSfM«MN 



i-^HNCOlSMNl 



CAJ lO'vO XONHNMWI 
I- r-l lO If -x ■* ao l>. ~t CO < 

HHrHIMHNIMMCOI 



i5.iM-tiSiaia!Oh.cebOHQOOo5t»co 



Is 

S 00 



lOOmtBHCl lSO<((«iaHlflNfflo5lHCO(6©«Q5«l "-CMCOCOCO© 
iW10'*'*'*'«lS1 , lBaiNOHMO-fMHT(lx5wOOOC0OOHHHO 



i oo oo oo oo ob < 



OirOiPtONQOaOH 

i^ r~ jq -o xj -jo -<"■ oo — — ■ 



i 6o oo oo oo oo oO 



CO TH lO 

«gft 



OOOOOOOOXOOOOoOOOOOOOMOOOOOOftO o o 
THlHl-lrHl-lr-(rHr-trHrHrHi-lrHi-(i-llHi-(i-liH r-l rH 



o ft o ft o ft o 



DEPARTMENT OF THE INTERIOR. 



It is now fifty-nine years since the Department of the In- 
terior was established, being- called in the enacting- clause of 
the Act the "Home Department." Since its organization there 
have been added some very important Bureaus, notably the 
Geological Survey, the Reclamation Service and the Bureau 
of Education. Many other minor duties have also been added 
until it is now one of the largest of the Executive Departments. 

During this period of more than half a century of gradual 
growth the procedure crystallized into many hard and fast rules 
and some years ag-o the time came for definite action toward a 
better adaptation to modern methods. 

This has been one of the most important duties of the Secre- 
taries during this Administration, and the present Secretary 
has given this phase of departmental work very earnest and 
thorough attention, with the result that there has been a 
remarkable improvement in methods in all the bureaus. 

Plans have been adopted greatly facilitating the work of 
the Department, which is now practically up to date in all its 
branches. It may be truthfully said that the Department is 
to-day a practical business organization, daily improving in 
efficiency. The vast volume of business handled by this Depart- 
ment is now disposed of without unnecessary delay and the 
enormous interests intrusted to its various bureaus are ad- 
justed with the same care as heretofore. 

This Department was fittingly designated in the original 
Act as the Home Department, because in many ways its oper- 
ations affect more closely the individual citizen than those of 
any other Department. 

Through the Land Office it has provided homes for millions 
of people and this great work is still going on. 

Through the Geological Survejr it is studying the public 
domain, classifying the land and investigating its resources. 

Through the Reclamation Service it is making still more 
effective the operations of the public land laws for establishing 
homes for the citizens of our country. 

Through the Indian Office it is not only caring for these 
wards of the nation, but is also providing for the use of large 
areas of waste land which the Indians can not profitably use. 

Through the Patent Office it is affording opportunity for the 
development of the natural inventive genius of our people to 
advance the manufacturing interests and the comfort of home 
life. 

Through the Pension Office it is giving proper care and 
assistance to the brave men who fought the battles of our 
country and to their widows and dependent heirs. 

Through the Bureau of Education it is reaching down to 
the very foundation of our Nation's prosperity and promoting 
greater efficiency in our public school system and other educa- 
tional institutions. 

Truly it is a Home Department, and its influence is felt 
from many sides in every home in the land. 

General I.imkI Ofliee. 

The administrative policy of the General Land Office for 
the past eight years has been to preserve the public lands 
in such a manner that as many citizens as possible may obtain 
homes, farms, and mines (hereupon. The utmost vigilance has 
been maintained to prevent their unlawful acquirement, either 
by corporations or individuals. Suspensions made years ago 
which were not justified or which have served their purpose 



8T4 INTERIOR DEPARTMENT. 

have been revoked and during the past year some 2,000,000 acres 
of such lands have been restored to the public domain. Every 
effort has been made to bring- up arrearages of work to the end 
that bona fide homestead and other claimants may secure their 
title as soon as possible, while at the same time unlawful en- 
tries and claims have been vigorously proceeded against. Dur- 
ing the past five years fences unlawfully inclosing public lands 
have been removed from 3,518,583 acres, and suits have been re- 
commended or other action taken to remove such inclosures 
from an additional 3,763,186 acres. During the past eight years 
$516,501.53 have been collected by the Department for timber 
trespasses upon the public lands and cases have been re- 
ferred to the Department of Justice for legal proceedings 
involving trespasses of $3,007,621.94, of which amount there 
has been collected through judgment and compromise $510,681. 
During the past eight years there have been secured in public 
land cases involving perjury, subornation of perjury, con- 
spiracy, forgery, false affidavits, timber trespasses, and un- 
lawful inclosures: 3,006 indictments; 871 convictions; 251 prison 
sentences ; $182,737 in fines, and there have been 577 acquittals ; 
the remaining indictments are awaiting trial. 

During the same period 7,874 fraudulent land entries have 
been canceled, thereby restoring to the public domain and to 
entry by citizens over 1,259,840 acres. From July 1, 1902, 
to May, 1908, there have been approved and patented 275,333 
homestead entries, covering about 44,053,280 acres. 

The interest manifested by the people in securing homes 
on the public domain is shown by the fact that since July 1, 
1906 (1% years), 171,047 original homesteads and desert land 
entries have been made covering more than 28,375,400 acres. 
Coal and timber lands have been disposed of, so far as existing 
laws permit, in such a way as to place them in the hands of 
citizens who will in good faith use and develop them in such 
a way as to avoid monopoly and tend to the general good. 

What was known as the Forest Reserve Lieu Act was passed 
for the relief of settlers whose claims were found to be within 
forest reservations, but it was found that instead of benefit- 
ing the settlers the law was being used by speculators to 
acquire large tracts of valuable public lands containing timber, 
springs and other resources of the public domain, which should 
be reserved for bona fide settlers ; accordingly in 1905 the lie- 
publican Administration repealed the law. 

Many homestead settlers were from various reasons unable 
to prove up on their claims and complete title thereto and 
.under the existing laws the making' of an entry exhausted their 
right and prevented their obtaining other homes on the public 
domain; accordingly in 1904 and in February, 1908, acts were 
recommended by the Department and passed by Congress giv- 
ing to those who had lost, forfeited, or abandoned their homes 
the right to make second homestead entries in all cases where 
the original entries were not canceled for fraud or relinquish- 
ments sold. This will enable a great many citizens to find new 
homes upon the public land and large numbers are taking ad- 
vantage of this beneficial legislation. 

Within the next two years between 4,000,000 and 5,000,000 
acres of public lands Mall be opened to settlement. Under the 
new plan adopted by the Land Office the drawings will be con- 
ducted in such a manner that every one who is eligible to take 
a homestead can register his or her name and stand an equal 
chance of securing the best claim in the reservation. This 
plan has been found to work admirably in the recent opening 
of several Indian reservations. 

Under regulations adopted a number of years ago persons 
desiring to cut timber from public lands for their own use 
were required to file applications and secure permission from 
the Secretary of the Interior before they could cut the timber, 
no matter how urgent the need. Last year the Department 
adopted new rules whereby such persons can file their appli- 
cations directly with a local field officer. The application is made 
special, and the field officer, if the application is found to be in 
good faith, can immediately permit cutting. 



INTERIOR DEPARTMENT. 375 

» Guarding the lVatfon'8 Coal. 

For the past few years there has been a widespread belief 
that the public coal lands were being improvidently disposed of 
and were falling- into the hands of corporations and others who 
were able to control the output of tiie mines and fix their own 
prices on the coal. It was also found that large tracts were 
being obtained unlawfully under other than coal laws, in 1907 
the existing laws were examined, and regulations were adopted 
to more fully carry out the intent of ths law that coal lands 
should pass in limited quantities to good faith claimants, wno 
had a personal interest in the lands and the development of coal. 
In order that coal areas might be defined and the ki d and 
value of the coal more accurately known by the Department and 
by the people the Secretary of th?, Interior directed the Geo- 
logical Survey to begin the work of classifying and valuing 
the public coal lands. The Administration is fully convinced 
that the present acreage, 160 aeres, which may be entered under 
the coal land laws is too small to warrant a citizen in expending 
the money necessary for the equipment and operation of larger 
mines. The Department has therefore recommended, and Con- 
gress now has under consideration, legislation designed to per- 
mit citizens to enter a larger area of coal land, the entries how- 
ever to be safeguarded so that the land cannot be made the 
subject of any combination in the form of an unlawful trust 
or conspiracy or in restraint of trade in the mining- or sale of 
the coal. 

This method of preventing monopoly has already been adopted 
in the Hepburn law passed by Congress this year, and relat- 
ing to Alaska. The -Alaska pioneers had discovered large 
bodies of valuable coal in the interior of Alaska and had under 
existing laws located and opened mines thereon, bit were under 
those laws limited to such a small area that the mines could 
not be worked at a profit nor could the locators, in vie»v of the 
remoteness of the lands, the price of supplies and labor, aiford 
to install the necessary machinery for the mining from sueh a 
small claim. The Interior Department recommended early in 
1908 that good-faith claimants owning adjoining claims in 
Alaska should be allowed to form partnerships or associations 
and combine sixteen of the small claims into one eniry and 
patent. This enables them to obtain title and work their mines 
to furnish coal for local consumption and for the Pacific Coast 
States. The United States has under the law the right to pur- 
chase as much coal as may be needed from the mines ior its 
Army and Navy at reasonable prices, and every safeguard pos- 
sible has been placed in the law to prevent monopolies, unlawtul 
trusts or combinations designed to restrain sale or mining of 
the coal. This legislation is of the utmost importance to the 
people, and the Administration deserves great credit for pro- 
viding reasonable laws and regulations whereby honest citizens 
may obtain coal mines and where at the same time the rights 
of the public are safeguarded with respect to such a vital 
necessity as the coal supply. 

Indian Allotments. 

Since the 30th of June, 1904, more than 15,000 Indians have 
received allotments of lands in severalty, covering approxi- 
mately 2,500.000 acres of land. 

These allotments have been made, generally, either under 
what is known as the "Dawes Act," or acts containing similar 
provisions. The object of the law is to break up the tribal sys- 
tem and community property by substituting individual owner- 
ship and citizenship. 

Under the Dawes Act the allottee was secured in the posses- 
sion of his allotment for a period of twenty-five years, ELS tlie 
Act provided that the land should be held in trust by the tTnited 
States for that period and at the, end conveyed to the allottee 
or his heirs in fee. 

He was, however, compelled to assume the burdens id' citi- 
zenship upon the approval of bis allot incut, and 1 loe mVnv 
Indians have become full-fledged citizens without any compre- 
hension of the privileges or responsibilities of citizenship. 



IT* INTERIOR DEPARTMENT. 

The conditions arising- under this provision of the law made 
plain the need of some modification which would enable the 
Indian Office to manage the affairs of the helpless class with 
undisputed authority, but, on the other hand, to remove from 
the roll of wards and dependants the large and increasing 
number of Indians who no longer need supervision by that 
Bureau. 

The Act of May 8, 1906 (known as the "Burke Act"), meets 
the requirements b}^ postponing the acquisition of citizenship 
until the termination of the trust period and declaring that 
until the allottees acquire citizenship they shall be subject to 
the exclusive jurisdiction of the United States. It provides 
for those who are competent to manage their own affairs by 
conferring authority on the Secretary of the Interior to ter- 
minate the trust period and issue a fee simple patent whenever 
he is satisfied of such competency. 

Under this Act 2,206 patents in fee have been issued. 

During this period 23,308 leases of allotted lands for farm- 
ing-, grazing, and business purposes have been entered into and 
approved. 

By these leases temporary homes have been provided for 
thousands of white citizens and large areas, which otherwise 
would have lain idle and unproductive, have been put in culti- 
vation. 

Tribal La* els— Permits for Griusfug Stock. 

434 permits for grazing stock upon Indian tribal lands have 
been issued from wkich a revenue of $984,422.80 has been re- 
ceived. 

Tribal grazing- leases covering 5,379,177.51 acres have been 
approved, the annual rental amounting to $619,180.19. 

These tribal funds are deposited in the Treasury to the credit 
of the respective tribes, and expended for their benefit or paid 
per capita to the members, in the discretion of the Secretary. 

Sti.tt/ar Beet Faming. 

A paragraph in the Indian Appropriation Act of March 1, 
1907, permits the Indians of the Fort Belknap Reservation in 
Montana to lease their lands, both allotted and tribal, but not 
to exceed 20,000 acres, for the culture of sugar beets and other 
crops in rotation, upon such terms, regulations, and conditions 
as shall be prescribed by the Secretary of the Interior, for a 
term not exceeding ten years. 

Under this authority a contract has been executed with three 
responsible persons for a lease to them of 19,000 acres. By the 
terms of the lease the Indians are to plow and put under culti- 
vation 5,600 acres, which has to be carefully worked over the 
first year to put in beets the next year. The Indians are to re- 
ceive $4.50 per ton for the beets. The lessees are to erect a 
factory for the manufacture of the beets into sugar, and take 
the product of the 5.000 acres each year. This will afford em-, 
ployment for the Indians and if they are able to cultivate 
all of the 5,000 acres will yield them a revenue of at least 
$270,000 per annum. 

The Geological Survey. 

' The United States Geological Survey, when organized in 
1879, under a Republican administration, became a pioneer 
agency in the internal development of the country. The field 
covered in the varied work of this bureau is that of the min- 
eral wealth of the nation. Its geologists have investigated the 
economic possibilities of the utmost corners of the land and 
by exhaustive studies of the larger mining districts have con- 
tributed directly to the working knowledge of the mine en- 
gineers and operators. Even in distant Alaska the work of the 
Geological Survey is recognized as of very great practical im- 
portance to the development of that young giant territory. 
The survey maps are not only eagerly sought by prospectors 
and miners, but they are in continual demand in all the great 
engineering enterprises. Here the Federal service has made ita 



INTERIOR DEPARTMENT. 377 

best record, for its investigations and reports on Alaska are 
widely credited with being- an important factor in the develop- 
ment of the large and increasing production of the precious 
and useful metals of the Territory. 

The statistical work of the Survey in its reports on the pro- 
duction of the precious and useful minerals of t lie country is 
recognized as of the greatest value to the mining industry. 
No such comprehensive treatment of the subject of produc- 
tion and distribution of the mineral wealth of a countr\ r is 
found in the world as that of the United States Geological 
Survey. 

Among other things, the Survey is constructing, at the 
rate of about 250 square miles a step, a great topographic 
map of the United States — a "mother map" of the country — 
and it is making one of these steps every third day. That is, 
it is issuing that often a topographic sheet which thus becomes 
a part of the big - map. Over 1,700 of these sheets have already 
been engraved and about one-third of the United States has 
been covered. When completed this will be the greatest map 
in the world. Our topographic maps have become the models 
for the map-making bureaus of many foreign nations. 

With one of these maps spread before him a man may trace 
the course of every stream, or accurately locate every moun- 
tain and hill, with the exact knowledge of their steepness and 
altitudes. The map is in effect a physical reproduction of the 
surface of the country, on a small scale. It is easy to see, 
then, its use not only to the engineer who may want to plan 
great irrigation or drainage systems or to determine the best 
route for 100 or 1,000 miles of railroad lines, but as well to the 
farmer or ranchman who wishes to drain the swampy corner 
of his farm or to lay out a wagon road between his ranch 
and that of his neighbor. The topographic survey, then, in- 
cludes all the surface features, while the geologic survey adds 
information concerning not only the rocks and soils exposed 
to the surface, but indicates what is beneath and foretells 
with remarkable accuracj^ what excavations may encounter, 
to a depth of hundreds and even thousands of feet. 

HydrograpUic Surveys. 

One of the important works of the Geological Survey is its 
study of the water resources of the country. Records of 
daily flow of streams have been collected at over 1,500 points 
throughout the United States for a period of years, in order 
to determine the average flow of the rivers. During the 
past year about 500 such stations have been maintained. 
Knowledge of floods, low stages and average discharge of rivers 
is essential if streams are to be utilized in power development, 
in irrigation and drainage and as contributing to inland navi- 
gation. These investigations of the Survey show conclusively 
that tens of millions of now wasted horsepower can be con- 
served and cheaply developed through the use of natural 
mountain reservoirs at the head waters, for flood storage. They 
show further that the use of these same flood-control reser- 
voirs will save tens of millions of dollars annually through 
flood prevention, and still further that they will be of enormous 
nid to irrigation in the West and to navigation in the Baal 
through the letting down into the river channels the stored 
Hoods, during the low-water or irrigation periods. 

The value of the topographic and hydrographic surveys in 
the development of the country in general has been eery preat; 
but a single striking example of their use fr rtni a gfovernmenl 
standpoint is seen in the successful work of the Reclamation 
Service. Taking as a basis these surveys, the Reclamation Ser- 
vice, immediately upon its orgajiization, was able to nVk out 
feasible projects and begin, not surveys and investigations, but 
actual construction work. The integrity of these great irri- 
gation works rest upon the records of stream flows which the 
Geological Survey, thanks to the Republican legislative fore- 
sight, had collected for years previous to the v-;> s^ai'v of the 
irrigation act, and the brilliant and rapid achievement of that 



378 INTERIOR DEPARTMENT. 

service is due to the extent and thoroughness of these pre- 
liminary basic investigations. 

And so with the drainage problem; should Congress enact 
a national drainage law to-day, the wisely provided preliminary 
work of the Geological Survey could be used as a basis for the 
immediate construction of a number of great swamp reclama- 
tion projects and the creation of many homes. 

Fop Prevention of Mine Accidents. 

The recent great mining disasters and the increasing num- 
ber of coal mine explosions throughout the country, and other 
mine accidents, resulting in an appalling loss of human life, 
have aroused the country to the need for action to prevent or 
diminish, if possible, these horrors. In response to the urgent 
demand of both labor and capital, Congress at its last session 
appropriated $150,000 to be expended by the Geological Survey 
in investigating this subject. A Division of Mine Accidents 
has been established and good results are expected, since state- 
ments already issued by the Survey show that mine accidents 
and the consequent loss of life have been greatly reduced in 
foreign countries, due to governmental investigations and study 
of the conditions affecting mining operations. 

At an experimental station of the Survey being estab- 
lished at Pittsburgh under this appropriation, tests of the 
various dynamites and powders used in blasting coal will be 
made, in order to determine the safest explosives in the pres- 
ence of fire damp, coal dust, etc. In connection with the sta- 
tion th^ere will be an experimental mine, with drifts, headings, 
rooms, ladders, etc., which can be filled with smoke or gas and 
practical experiments made with life-saving apparatus. Miners 
will be taught how to wear this apparatus and how to rescue 
their comrades from the vapors should they become uncon- 
scious following an explosion. The results of the investigations 
will be published for the benefit of the State mine bureaus, 
operators and miners. Simple instructions will be printed, from 
time to time, in half a dozen languages. 

Com! Land Values Fixed. 

The development of internal resources has been the aim and 
the accomplishment of the present administration; but no 
more than has been prevention of wasteful and fraudulent 
exploitation of such resources. In no field of Republican guar- 
dianship of the people's rights does the wise statesmanship 
of the administration shine more brightly than in the man- 
agement of the nation's coal supply. The government still 
owns between seventy and eighty million acres of known coal 
fields in the West. The common knowledge of the waste in 
the operation of the older coal fields as well as the monopoliza- 
tion of great coal-producing areas by corporations and syndi- 
cates desiring to hold without developing them or allowing 
others to devolop them for the needs of the public, suggested to 
the administration an investigation of the Western fields where 
the government is still the major owner. This investigation 
quickly brought to light the fact that large areas of valuable 
coal lands had been acquired by corporations through gross 
fraud, perjury, and bribery, under agricultural laud laws. A 
fearless interpretation of the coal land law itself recog- 
nized that the price "which the Government had always charged 
for coal land, namely, $10 and $20 an acre (according to 
whether the coal lands lie within or without the 15-mile rail- 
road limit) was only the minimum price. In spite of a verit- 
able storm of protest, the President immediately withdrew 
from all entry 67,000,000 acres of Western public coal lands 
and the Geological Survey began at once the classification and 
valuation of this land, under regulations fixing the price at 
from the minimum of $10 to $20, to $100 an acre. The effect 
of the President's withdrawal was not only to stop immediately 
the sale of, public coal lands at an undervaluation, but it 
checked the gigantic frauds in acquiring such lands, under 
the homestead, desert, and other land laws. 



INTERIOR DEPARTMENT. 379 

In order, however, that legitimate operations might not 
be hampered unduly the work of classification has been prose- 
cuted with great vigor and already over 50,000,000 acres of 
this withdrawn land have been classified and valued by the 
Survey and restored to public purchase. Valuations have been 
fixed from $10 up to- $75 an acre. These valuations made by 
the coal geologists of the Survey are not the result of mere 
classification made in the Washington office, but of actual geo- 
logic field investigations, in the course of which the geologist 
examined each 40 acres, upon which he put a valuation as coal 
land. This economic work of the administration is not only 
securing to the government a more nearly adequate return 
for property of great value, but is preventing- the monopoliza- 
tion of great areas of coal. 4 

Of course, bitter opposition has developed in many instances 
where individuals and corporations were acquiring lands of 
great value at the low price of $10 or $20 an acre, or through 
fraud and perjury at $1.25 per acre. The correction of the 
evil, however, has met generally with the hearty approval of 
the people of the country. An idea of the extent of the losses 
suffered by the Government may be deduced from the results 
of coal land classifications by the Geological Survey, in which 
the fact was developed that one coal company in a single coal 
field in a Western State had legally purchased 13,128 acres at 
the $10 to $20 an acre rate, while it had acquired 15,800 acres 
as "agricultural land," and of this last, 13,280 acres had abso- 
lutely no value for agriculture. 

Fuel and Structural Material Tests. 

A governmental activity for which Eepublicans may justly 
take great credit — one of the many results of the wise states- 
manship and legislative foresight of the party — is the practical 
testing and experimental work of the Geological Survey. Con- 
gress first provided for these economic investigations of the 
natural products of the United States in 1905 and has appro- 
priated a total amount of over a million and a quarter dollars; 
but the beneficial results from the work have been so great 
and far-reaching that had the appropriation been quadruple 
or even ten times this amount, the nation would have been reim- 
bursed by the values saved. To cite one or two instances: An 
important result attained in fuel investigations is the estab- 
lishment of the fact that the low-grade bituminous coals and 
lignites of the country, of which there are tens of millions of 
acres heretofore considered of but slight industrial value, can 
be converted into gas and- used in the gas engine with more 
than double the efficiency attainable under the steam boiler. 
In other words, the discovery has doubled the value of these 
coals. This applies also to millions of tons of inferior coal 
which in mining operations is annually left underground and 
permanently lost. 

The investigations also show that some of the peats, found 
in great abundance in the New England, North Central and 
Atlantic States, but heretofore considered of little value, may 
be used to advantage as a source of power in the gas pro- 
ducer, either for local farm purposes or for large power plants, 
and also that it is practicable and economical to make briquets, 
a superior and smokeless fuel, out of the millions of tons of 
slack and coal dust now wasted annually. 

In the tests of structural materials, most important results 
have been attained. The increasing use of reenforeed con- 
crete has* shown the great need of scientific informal ion. These 
investigations have all been made for the benefit o\' the Govern- 
ment— 1-Ydernl buildings and other engineering works, such 
as the great irrigation structures in the West, the Panama 
Canal construction, etc. but here, as in the ease of the fuel 
investigation, the general public is the greatest gainer from the 
resull s. 

All of these scientific-economic investigations, experiments 
and tests of the Government, fostered, encouraged, and provided 
for by Republican legislation, should be continued and extend e 
Upon the economical development of our natural resources de- 



380 INTERIOR DEPARTMENT— RECLAMATION. 

pends in very large measure the continuance of our national 
supremacy and the prosperity of our people, and these evidences 
of wise statesmanship and forehanded legislation show that 
the party of progress can be relied upon, in the future as 
in the past, to carry out such policies, which, while under the 
strict wording of the appropriation acts are for the uses of 
the government, are in reality for the benefit of all the people 
of the country. 

The Reclamation Service. 

The Reclamation Act, which was signed on June 17, 1902, by 
President Roosevelt, is to-day generally recognized as one of 
the wfeest laws ever enacted by Congress, as beneficent as it was 
necessary. It inaugurated a step exactly in line with the ad- 
ministration's broad policy of the conservation and develop- 
ment of the natural resources of the country, and is regarded 
as second only in importance to that other great Republican 
enactment — the Homestead law. 

Under the provisions of the law, national irrigation already 
has become a most important factor in Western development, 
in the building up of commonwealths and prosperous agricul- 
tural communities. The economic value of the work cannot 
be measured in dollars and cents. Our unoccupied public lands, 
which belong to all of the people, are largely desert. To make 
them habitable is a national duty too obvious to be questioned. 
The future prosperity and growth of sixteen Western States 
and territories are linked inseparably with the development of 
irrigation.^ The desert reclaimed will support millions in com-, 
fort in homes of their own, thus providing a safety valve 
against the impending dangers of congestion of population in 
the older settled portions of the country.. Conservative en- 
gineers estimate that at least twenty-five million acres of 
land now desert and uninhabited will be converted into small 
farms under the provisions of the reclamation law. This vast 
area, capable of supporting millions of people, will be brought 
into cultivation without entailing the loss of a single dollar 
to the national treasury, as the land reclaimed is assessed for 
the benefits received and the landowner must return to the 
Treasury the cost of reclamation. 

The Reclamation Service, now a separate bureau of the De- 
partment of the Interior, has had charge of the engineering 
work from its inception. Notwithstanding the enormous area 
of country embraced in the arid States — two-fifths of the United 
States — the Service has already completed surveys and per- 
fected estimates for twenty-six irrigation projects, and is en- 
gaged upon the construction of twenty-five of these. On a 
number construction work has progressed sufficiently to irri- 
gate large areas which have been settled upon, and are now 
producing crops. No better evidence of the wisdom of the 
law, and the business-like and the practical methods of its 
administration could be submitted than the fact that homes 
are actually being made in large numbers on the land reclaimed, 
and the cost of the work is being returned by the settlers. 

A summation of the work of the Reclamation Service to 
January 1, 1908, shows that it has dug 1,881 miles of canals, 
or nearly the distance from New York to Idaho. Some of these 
canals carry whole rivers, like the Truckee river in Nevada, 
and the North Platte in Wyoming. The tunnels excavated are 
56 in number, and have an aggregate length of 13 l /2 miles. The 
Service has erected 281 large structures, including the great 
dams in Nevada and the Minidoka dam in Idaho, 80 feet high 
and 650 feet long. It has completed 1,000 headworks, flumes, 
etc. It has built 611 miles of wagon road in mountainous coun- 
try and into heretofore inaccessible regions. It has erected 
and in operation 830 miles of telephones. Its own cement mill 
has manufactured 80,000 barrels of cement, and the amount 
purchased in addition is 403,000 barrels. Its own sawmills have 
cut 3,036,000 feet B. M. of lumber, and 23,685,000 feet have been 
purchased. The surveying parties of the Service have com- 
pleted topographic survej^s covering 10,9TO square miles, an 
area greater than the combined areas of Massachusetts and 



IKTERIOR DEPARTMENT— PENSIONS. 381 

Rhode Island. The transit lines had a length of 18,900 linear 
miles, while the level lines run amount to 24,218 miles, or nearly 
sufficient to go around the earth. 

The diamond drillings for dam sites and canals amount to 
66,749 feet, or more than 12 miles. To-day the Service owns 
and has at work 1,500 horses and mules. It operates 9 loco- 
motives, 611 cars, and 23 miles of railroad, 81 gasoline engines 
and 70 steam engines. It has constructed and is operating 
5 electric light plants. There have been excavated 42,447.0(0 
cubic yards of earth and rock. The equipment now operate I 
by the Service on force account work represent an investment 
of a million dollars. 

This work has been carried on with the following force: 
Classified and registered service, including Washington office. 
1,126; laborers employed directly by the Government, 4,44^; 
laborers employed by contractors, 10,789, or a total of all forces 
of 16,363. The expenditures now total nearly $1,000,000 per 
month. As a result of the operations of the Reclamation Serv- 
ice, eight new towns have been established, 100 miles of branch 
railroads have been constructed, and 14,000 people have taken 
up their residence in the desert. 

Pension Legislation of the Republican Party. 

During the last four years of this administration the work 
in the Pension Bureau has been brought up to date. A claim 
for pension is now taken up for action as soon as it reaches 
the files of the Bureau. Its early adjudication depends entirely 
upon the promptness with which the claimant furnishes the 
evidence called for by the office. If sufficient evidence be filed 
with the application for pension it is possible that a certificate 
may be issued to the pensioner within two weeks from the date 
the application is filed. 

There has been a decrease of nearly $700,000 in the expenses 
of conducting the affairs of the Bureau during the last four 
years, the expenses during the last year being the smallest since 
1886. At one time the number of employees in the Pension 
Bureau was over 2,000. There has been a gradual reduction 
in the number of such employees, until at the present time 
there are less than 1,400. This reduction has been accomplished 
mainly by allowing the vacancies which occur through death, 
resignation, etc., to accumulate instead of filling them as they 
take place, thus avoiding the necessity for dismissals on this 
account. 

Notwithstanding- this reduction the number of certificates 
issued during the last twelve months is greater than during 
any previous twelve months since the establishment of the 
Tension Bureau, nearly 400,000 certificates being issued during 
the past year. 

The Act of Jnne 27. 1890, passed by a Republican Congress 
and signed by a Republican President, was the first disability 
pension law in the history of the world, granting to soldiers 
and sailors pensions for disability not proven to have been in- 
curred in the service and line of duty. This was the most 
far-reaching pension legislation enacted after the close of the 
Civil War and recognized a higher obligation of the people to 
their disabled veterans than was ever before formulated into 
law. 1'revioiis to 1890 pensions for service in the Civil War 
were granted only to those who were wounded in the service 
or who had contracted some disability therein, and likewise 
pensions were granted only to widows, minor children, and de- 
pendent puvios of those who died from injuries received or dis- 
abilities contracted in the service. The Act of June 27, 1890, 
granted pensions to till persons who served ninety days or more 
during trie Civil War and who were disabled from earning a 
support bv manual labor, withe t requiring the applicant to 
prove that the disability or disabilities were incurred in the 
service. The Act also granted pensions to dependent widows of 
all such persons withont reqriring thehi to prove that their 
husbands died of wounds received or disabilities contracted in 
the servi'-e. The rate of pension tinder the Act of June 27, 
J890, was from $6.00 to $12.00 per month to the survivor* «f 



3S8 INTERIOR DEPARTMENT— PENSIONS. 

the Civil War in accordance with the degree of disability, and 
$8.00 per month to all widows. 

The most important pension legislation enacted since the pas- 
sage of the Act of June 27, 1890, was the Act of February 6, 1907, 
also passed by a Eepublican Congress and signed by a Republican 
President, granting pensions to certain enlisted men, soldiers 
and officers, who served in the Civil War and the War with 
Mexico. Under this Act any person who served 90 days or more 
in the military or naval service of the United States during 
the late Civil War or 60 days in the W T ar with Mexico and 
who was honorably discharged is entitled to a pension of $12.00 
per month on reaching the age of 62 years, $15.00 per month 
on reaching the age of 70 years and $20.00 per month on reach- 
ing the age of 75 years. While the rates to survivors under 
the Act of June 27, 1890, were from $6.00 to $12.00 per month, 
the rates provided by the Act of February 6, 1907, are from 
$12.00 to $20.00 per month. Nearly 400,000 applications for the 
benefit of this Act have been filed in the Bureau and more than 
350,000 certificates have been issued thereunder, making an aver- 
age increase to each pensioner of about $53.00 per annum. 

The legislation next in importance is the Act of April 19, 
1908, to increase the pensions of widows, minor children, etc., 
of deceased soldiers and sailors of the late Civil War, the War 
with Mexico, the various Indian wars, etc., and to grant a 
pension to certain widows of the deceased soldiers and sailors 
of the late Civil War. Under this Act all widows, minors, and 
helpless children on the rolls at a less rate were increased to 
$12.00 per month, and the widows of those who served ninety 
days during the Civil War and who received an honorable dis- 
charge therefrom, are entitled to pension under this Act, provided 
they were married prior to June 27, 1890, dependence not being 
considered. This Act granted an increase of pension to some 
200,000 widows and children of deceased soldiers and sailors of 
the Civil War and the War with Mexico and the various Indian 
wars. " Pensioners w*re not required to file an application in 
the Bureau of Pensions to secure the increased rate provided by 
the Act of April 19, 1908, as the Pension Agents were instructed 
to pay all pensioners on the roll affected by this Act at the 
increased rate at the first quarterly payment occurring after 
the passage of said Act. More than 60,000 pensioners received 
payment at the increased rafte at the quarterly payment which 
occurred on May 4, 1908— only fifteen days after the passage 
of the Act, and the entire number of pensioners entitled to 
the benefits of this Act receive payment at the increased rate 
within three months after the passage of the Act. The appli- 
cations for original pension received under the Act of April 
19, 1908, were given immediate attention, and in about thirty 
days after the approval of the Act the Bureau was issuing more 
than 100 certificates per day thereunder to widows whose names 
were not previously on the pension rolls. 

The number of pensioners on the rolls is now slightly in 
excess of 950,000 and the average amount paid out in pensions 
each month is nearly $13,000,000. There are about 625,000 sur- 
vivors of the Civil War on the pension roll at the present 
time. As more than 2,500 of these survivors are dropped from 
the rolls each month on account of death, the importance of 
having their claims promptly adjudicated will be readily ap- 
preciated. The work in the Bureau of Pensions is now in such 
a condition that an application for , increase of pension will be 
settled and the pensioner, if entitled to the increase, will re- 
ceive such increase at the first quarterly payment falling dife 
after the filing of the claim. Notwithstanding the fact that 
the work of the Bureau during the past year was the greatest 
in amount during its history, a balance of nearly $400,000 which 
had been appropriated by Congress for the running expenses 
of the Pension Bureau remained unexpended at the close of the 
last fiscal year and was turned back into the Treasury. 

The amount of money paid in pensions by the Government each 
month was a very great factor in relieving the money stringency 
during the few months following October, 1907. In order that this 
money might be distributed as widely as possible and benefit 
the neighborhoods in which the pensioners were located, the ad- 



mi: 



INTERIOR DEPARTMENT— PENSIONS. 



383 



ministration directed that all Postmasters who hau funds avail- 
able should accept pension checks from pensioners and pay cash 
therefor. The Postmasters by this means were able to forward 
the pension checks to their depositories and obtain credit there- 
for, instead of forwarding the actual cash. Thit, increased the cir- 
culating medium in each neighborhood throughout the country 
in which pensioners were located to the full extent of the 
pension paid, thus greatly benefiting not only the pensioners but 
the banks and the entire business community as well. 

The number of pensioners upon the rolls July 1, 1907, atid for 
three preceding years, respectively, is as follows: 





1904. 


1905. 


1906. 


1907. 


Revolutionary war: 

Widows 


1 
2 

1 
918 

2,367 
3,519 

5,214 
7,821 

240,785 

77,414 

1,765 

875 

7,895 

192 

459 

450,007 

161,067 

4,067 

226 


1 

4 


1 

3 




Daughters 


3 


War of 1812: 

Survivors ». 






776 

2,269 
3,461 

4,540 
7.653 

219,384 

77,620 

1,410 

769 

6,643 

195 

472 

465,224 

169,066 

4,177 

250 


660 

2,173 
3,367 

3,984 

7,488 

205,375 

76,810 

1.097 

662 

5,519 

205 

479 

461,078 

175,237 

4,167 

274 


558 

2,007 
3,201 

3,485 
7,214 

178,816 
75,629 

' 873 


Indian wars: 

Survivors 


Widows 


War with Mexico: 

Survivors 


Widows 


Civil war: 

General law- 
Invalids 


Widows 


Fathers _. __ 


Minor children 


599 


Mothers 


4,578 


Brothers and sisters 


224 


Helpless children 


489 


Act of June 27, 18J0 
Invalids 


349,283 


Widows 


1S*0,539 


Minor children 


4,032 




■1 !2 


Act Februarv 6, 1907.— 


116,239 


Array nurses 


606 

12,440 

1,012 

224 

2,715 

430 

8 


608 

15,711 

1,068 

272 

2,957 

473 

9 

1 

10,030 

2,453 

115 

714 

108 

6 

7 


579 

17,646 

1,094 

298 

3,061 

512 

9 

1 

10,648 

2,498 

120 

783 

130 

5 

8 


542 


War with Spain: 

Invalids _ 


19.031 


Widows - _ 


1,100 




316 




3,0>0 


"Fathers __. „_ 


527 


Brothers and sisters .. _ 


11 




2 


Regular establishment: 


9,501 

2.3S1 

111 

633 

93 

8 

5 


11,076 




2.526 


Minor children _ . 


122 




821 


Fathers _ - _ _ . 


133 




5 




8 






Total 


994,762 


998,441 


985,971 


967,371 



On July 31, 1902, there were 1.001.494 pensioners on the rolls. 
The following table shows the annual decrease in the roll since 
that date and the loss by death for each year : 





Number of 

pensioners on 

the rolls. 


Number of 

pensioners 

dro- ped by 

death. 


June 30, 190:?.. 

June 30, 1904 .. 


996,545 
994,768 

998, ill 

967,871 
964,618 


40.907 


Juno 30, 1905 


43,888 


Juno 30, 1906 




June 30, 1907 

March 31, 1908 


45,7ft- 
86, US 






Total 




262, S00 









Assuredly It is ninvisc to cliniiK'e <he polletofl whloh have 
worked so well and which ore now worklnic no well.— Presi- 
dent Roosevelt'* speech accepting 1904 nomination. 



The cost of the pension system per capita of population is 
shown for certain years as follows: P 



Year. 


Number 
of pen- 
sioners. 


Total cost 

of pension 

system. 


Total 
popula- 
tion. 


Cost 
per capita 

of 
population. 


1893 


966,012 
993,714 
996,545 
967,371 


$161,774,372,36 
148,765,971.26 


66,349,000 
72,947,000 




1898 


|2.44 


1903 


2.04 


1907 


-L41,/o2,870.o0 8O,847,09§ 


1.75 






8a, 817, 239 


1.02 



Disbursements for pensions and for maintenance of pension 
system, 1866 to 1901. ' 



Year. 



1879 

18^0 

1881 

1882 

1883 

1884 

1885 

1886 

1887 

1888 

1889 

1890 



Paid as 
pensions. 



Cost, mainte- 
nance, au.i 
expenses. 



Total. 



1894 
1895 
1896 
1897 



I960 
1901 
1902. 
1903 . 
190i. 
1905 . 
1906. 
1907. 



Total... 



$33,664 

5b, 68 J 

50,583 

51,313 

60,427 

57,912 

§6,171 

64,091, 

73,752; 

78, 950; 

88,842, 

106,093, 

117,312, 

139,394, 

156,906. 



139,812 
138,220 
139,949 
144,651 
138,355 
188,462 
138,531 
137,504 
137,759 
141,093 
141,142 
139,000, 
138,155: 



,428.92 
,2z J. OS 
,405.35 
,172.05 
,573.81 
,387.47 
,937.12 
,142.90 
,997.08 
.501.67 
,720.58 
850.39 
690.50 
,147.11 
,637.94 
,726.17 
,294.30 
,704.46 
,717.85 
,879.80 
,052.95 
,130.65 
,483.84 
,257.99 
,653.71 
,571.49 
,€61.33 
238.25 
412.46 



Number 
of pen- 
sioners. 



J 3,501,570,279.46 



$837,734.14 
935,027.28 
1,072,059.61 
1,466,236.01 
2,591,618.29 
2,835,181.00 
3,392,576.34 
3,245,016.61 
3,753,400.91 
3,515,057.27 
3,466, 938. 40 
3,526,382.13 
4,700,636.44 
4,898,665.80 
4,867,734.42 
3,963,976.31 
4,338,0-0.21 
3.991,375.61 
3,987,783.07 
4,114,091.46 
4,147.517.73 
3,811.705.74 
3,868,795.44 
3,831.378.96 
3,993,216.79 
3,849,366.25 
3,721,832.82 
3,523,269.51 
3.309,110.44 



$34,502,163.06 

57,624,253.36 

51,355,461.99 : 

55,779,408.06 

63, 019, 222. 10 

60,747,558.47 

68,564,513.45 

67,336,153.51 

77,506,397.93 

82,165,558.94 

92,309,688.98 

103,621,232,52 

122,013,324.84 

114,292,812.91 

161,771,372.36 

143,950,702.48 

144,1.50,314.51 

142,212,080.07 

143,937,500.42 

148,765,971.28 

142,502,570.68 

142. 303, 837. 3y 

142,400,279.28 

141,335,616.95 

141,752,870.50 

144,942,937.74 

144,864,694.15 

142,523,557.73 

141,461,522.90 



110,051,513.73 <■ 3,611,621,75 



:.i9 



242,755 

250, 8 J2 

268, 8i0 

25.5,697 

303,658 

322,756 

345,125 

365, 7* J 

406,007 

452,557 

489,725 

537,944 

676,160 

876,068 

906,012 

96.), 5 14 

970,524 

970,678 

970,914 

9)3,711 

991,519 

953,529 

997,735 

999,446 

9K3.5 45 

991,762 

9 IS, 141 

985, 971 

937,371 



AN ACT 

Granting- pensions to certain enlisted men. soldiers, and officers 
who served in the Civil War and the War with Mexico. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That anv 
person who served ninety days or more in the military or 
naval service of the United States during the late Civil War 
or sixty days in the war with Mexico, and who has been 
honorably discharged therefrom, and who has reached the 
age of sixty-two years or over, shall, upon making proof of such 
facts according to such rules and regulations as the Secretary 
of the Interior may provide, be placed upon the pension roll 
and be entitled to receive a pension as follows: In case such 
person has reached the age of sixty-two vears, twelve dollars 
per month; seventy years, fifteen dollars per month; seventy- 
five years or over, twenty dollars per month; and such pensions 
shall commence from the date of the filing of the application 
in the Bureau of Pensions after the passage and approval of 
this Act: Provided, that pensioners who are sixty-two years of 
age or over, and who are now receiving pensions under existing- 
laws, or whose claims are pending in the Bureau of Pension? 
may, by application to the Commissioner of Pensions in such 
form as he may prescribe, receive the benefits of this \ct ; and 
nothing- herein contained shall prevent any pensioner or person 
entitled to^ a pension from prosecuting- his claim and receiving 
a pension under any other general or special Act: Provided 
that no person shall receive a pension under any other law at 



1 



INTERIOR DEPARTMENT— PENSIONS. 385 



the same time or for the same period that he is receiving- a pen- 
sion under the provisions of this Act: Provided, further, that 
no person who is now receiving or shall hereafter receive a 
gpreater pension under any other general or special law than 
he would be entitled to receive under the provisions herein shall 
be pensionable under this Act. 

Sec. 2. That rank in service shall not be considered im appli- 
cations filed hereunder. 

Sec. 3. That no pension attorney, claim agent, or other per- 
son shall be entitled to receive any compensation for services 
rendered in presenting any claim to the Bureau of Pensions, or 
securing any pension under this Act. 

Approved, February 6, 1907. 

AN ACT 

To inerease the pensions of widows, minor children, and so forth 
of deceased soldiers and sailors of the late Civil War, the War 
with Mexico, the various Indian wars, and so forth, and to 
grant a pension to certain widows of the deceased soldiers and 
sailors of the late Civil War. 

Be it enacted by the Senate and Bouse of Representatives of 
the United States of America, in Congress assembled, That 
from and after the passage of this Act the rate of pen- 
sions for widows, minor children under the age of sixteen 
years, and helpless minors as defined by existing laws, now on 
the roll or hereafter to be placed on the pension roll and entitled 
to receive a less rate than hereinafter provided, shall be twelve 
dollars per month ; and nothing herein shall be construed to 
affect the existing allowance of two dollars per month for each 
child under the age of sixteen years and for each helpless 
child ; and all Act or parts of Acts inconsistent with the pro- 
visions of this Act are hereby repealed: Provided, however, That 
this Act shall not beso construed as to reduce any pension under 
any Act, public or private. 

Sec. 2. That if any officer or enlisted man who served ninety 
days or more in the Army or Navy of the United States during 
the late Civil War. and who has been honorably discharged 
therefrom, has died, or shall hereafter die, leaving a widow, 
such widow shall, upon due proof of her husband's death, with- 
out proving his death to be the result of his army or navy 
service, be placed on the pension roll from the date of the filing 
of her application therefor under this Act at the rate of twelve 
dollars per month during her widowhood, provided that said 
widow shall have married said soldier or sailor prior to June 
twenty-seventh, eighteen hundred and ninety ; and the benefits 
of this section shall include those widows whose husbands, if 
living, would have a pensionable status under the Joint Keso- 
lutions of February fifteenth, eighteen hundred and ninety-five ; 
July first, nineteen hundred and two, and June twenty-eighth, 
nineteen hundred and six. 

Sec. 3. That no claim agent or attorney shall be recognized 
in the adjudication of claims under the first section of this 
Act, and that no agent, attorney, or other person engaged in 
preparing, presenting, or prosecuting any claim under the pro- 
visions of the second section of this Act shall, directly or in- 
directly, contract for, demand, receive, or retain for such ser- 
vices in preparing, presenting, or prosecuting such claim, a sum 
greater than ten dollars, which sum shall be payable only upon 
the order of the Commissioner of Pensions, by the pension agent 
making payment of the pensions allowed; and any person who 
shall violate any of the provisions of this sec-lion, or who shall 
wrongfully withhold from the pensioner or clainin.n1 t 
or any part of a pension or claim allowed or due such pen- 
sioner or claimant under this Act shall be deemed guilty of 
a misdemeanor, and upon conviction thereof shall, for each and 
every such offense, be fined not exceeding five hundred dollars or 
be imprisoned at hard labor not exceeding two years, or both, 
in the discretion of the court. 
Approved, April 19, 1908. 

M 



DEPARTMENT OF AGRICULTURE. 



Work of the McKinley-Roosevelt Administration in Behalf 

of the Farmer. 

During- the last eleven years Presidents McKinley and Roose- 
velt have aimed to bring the Department of Agriculture to the 
help of our farmers in all sections of the country and have in- 
structed the Secretary of Agriculture to use all endeavors to help 
the tiller of the soil toward greater efficiency and more economic 
production ; to make the American acre more potent in growing 
crops. The Congress during the last eleven years has quadrupled 
the amount of money invested in agricultural research and dem- 
onstration, to give the American farmers help in their opera- 
tions on the farm, to feed our people well and cheaply, and en- 
alHe them to compete with the outside world. It has provided 
for over two thousand scientists, specialists in their respective 
lines, who are in touch with our farmers in all sections of the 
country, gathering information and preparing it for issue in 
departmental publications, of which nearly seventeen million 
pieces were given out in 1907 to go into our country homes, deal- 
ing directly with what is uppermost in the minds of our growers 
of plants and animals at the time of publication. 

Science Applied to ' Development of Agriculture. 

The education of specialists in applied science to meet the 
demand for research under the Federal Government and under 
State institutions has become a prominent feature of depart- 
mental work. Graduates of our agricultural and other colleges 
are drafted into the Department of Agriculture and prepared for 
scientific research along the lines demanded by the producers 
of our country under all our varied conditions. Within the last 
eleven years nearly sixteen hundred young men have had post- 
graduate instruction in the sciences of agriculture. The De- 
partment of Agriculture and the State experiment stations are 
actively cooperating with regard to unsolved problems that affect 
the farmer throughout our States and Territories and in the 
islands of the sea that have lately come into our possession. 

New markets for our surplus production are being sought in 
foreign countries, aad scientific inquiry is being made into the 
preparation of our exports for foreigs. markets. Uncertainty 
with regard to the magnitude of our crops at home is being 
removed by careful statistical inquiry, to the end that more 
accurate knowledge with regard to production may mitigate the 
evils of speculation. Inquiry is also being made into the pro- 
ductions of competing countries, in order that the American 
farmer may know what he has to meet in foreign markets. 

New Prodncts for American Farms. 

Strenuous efforts are being made to encourage the home pro- 
duction of articles we have been importing from foreign coun- 
tries. During the last eleven years there has been an increase 
in the production of sugar from beets which makes the product 
of 1907, amounting to 500,000 tons, over thirteen times that of 
1896 and its value fifteen times. Eleven years ago we produced 
only one-fourth of the rice consumed in the United States. The 
fostering work of the Federal Government has enabled the rice 
growers to produce more than the equivalent of our home con- 
sumption and foreign markets are being sought for the surplus. 
There was an increase in the production of rice from 97,000,000 
pounds in 1896 to an average of 716,000,000 pounds during the 
last four years. 

Scientific research by the Bureau of Soils demonstrates the 
fact that we can produce at home the fine tobaccos for which we 
have been paying over twenty million dollars a year to foreign 

386 






DEPARTMENT OF AGRICULTURE. 387 

countries. Our explorers have searched foreign lands for grains, 
legumes, fiber plants, teas, etc., for introduction into sections of 
the United States suitable to their production. The producing 
area for grains has been extended westward into the dry re- 
gions of our country through the introduction of plants that 
are at home where the rainfall is light. Nearly fifty millions of 
bushels of wheat are being grown in regions that have hereto- 
fore been unproductive. 

Eradication of Diseases of Farm Animals and Prodncts. 

The Federal Government is studying the diseases of domestic 
animals with a view to their complete eradication. Our animals 
and their products go to foreign countries with bills of health- 
fulness. The American meats are the most wholesome in the 
world, as the world now knows. An imported disease of do- 
mestic animals was promptly stamped out within a year at an 
expenditure of $300. OOO, to prevent it f,rom spreading throughout 
the country among our herds and flocks. Rigid inspection 
against foreign countries having animal diseases is maintained 
at our ports of entry, in order to protect the health of our do- 
mestic animals. 

Within the last eleven years the Government has become 
thoroughly equipped to deal with plant diseases. The loss of 
half a million dollars annually was stopped by pathological ex- 
amination of our sea-island cottons. New varieties of fruits, 
cereals, cottons, etc., are being created by hybridizing to meet 
the demands of producers of these crops in the North and 
in the South. 

Our forests have been mostly destroyed and our mountains, 
the natural reservoirs for water, have been rendered incapable 
of retaining moisture. Efforts are being made to reforest the 
country, to prevent fires, to regulate grazing in our forests, and to 
study lumbering and forest products. 

The Federal Government is making inquiry into road material 
and a beginning has been made in the education of young men 
toward road building. A laboratory has been established in the 
Department of Agriculture for the study of materials with which 
to construct roads ; and rocks, gravels, clays, tiling, cement, con- 
crete pavements, stone, brick, wood, and asphaltum are being 
studied. 

The Central American boll weevil, now the greatest menace 
to the cotton crop of the United States, is being actively studied 
as it increases its range, and means of control have been devised 
which make the growth of cotton nearly as profitable as evei . 
The insect enemies of other great staple crops are being investi- 
gated throughout the country, and the gypsy and brown-tail 
moths, which are threatening the forest areas of New England, 
are being checked and brought into measurable control by the 
agency of the Federal Government in cooperation with State 
authorities. The losses occasioned by insect pests in general 
amount to hundreds of millions annually, and much of this loss 
may gradually be prevented by the kind of work done by the 
Department of Agriculture. 

The practicability of growing tea in the United States is 
being demonstrated, and extensive experimentation is being 
made in the production of silk. 

The atmosphere in its relations to agriculture and commerce 
is being carefully studied and trained meteorologists for the 
first time in our history are being detailed from the Department 
of Agriculture to give lectures in institutions of learning, in 
order that we may have scholars in the land along this line of 
inquiry, to the end that the farmer and the mariner may have 
all the protection that intelligent forecasting can give them. 

The Meat Inspection and Pare Food Laws. 

On June 30. 1906. by the approval of President Kooxevelt. the 
Meat Inspection Amendment became a law. Under the provisions 
of this amendment the Federal Government guarantees to t la- 
people of the United States lhat the meat shipped in interstate 
commerce is derived from animals which are free Prom disease 
at the time of slaughter and that meat food products from these 



388 DEPARTMENT OF AGRICULTURE. 

animals are prepared in clean packing houses, under sanitary 
conditions, and without the addition of any injurious or dele- 
terious drugs, chemicals, or preservatives. The United States 
now has the most stringent and the best enforced meat inspection 
law of any country in the world, and it is a great protection to 
the health and lives of the people. Over 2,500 employees are di- 
rectly engaged each working day in the ♦year in the enforcement 
of the law. 

On the same day, June 30, 1906, President Eoosevelt approved 
the Pure Food Law. This law covers all foods, with the excep- 
tion of meats, including beverages, and also drugs which enter 
interstate or foreign commerce. By its terms, articles of food 
or drink must not contain any injurious or deleterious drug, 
chemical, or preservative, and the label upon each package of 
food, drugs, or drink must state the exact fact, and must not be 
false or misleading in any particular. While this law does not 
cover foods, beverages, and drugs which are produced and con- 
sumed entirely within the limits of one State, yet its enactment 
has incited the legislatures of the different States to enact laws 
covering domestic products of a like nature. These laws very 
generally follow the national act as to form and detail, the only 
difference being that one affects interstate and foreign com- 
merce, while the other affects the internal commerce of the 
State. Inspectors are continually traveling throughout the 
United States to discover whether the terms of the law are 
being observed, and they have found, upon the part of manu- 
facturers and dealers, a very general compliance with the law. 
When violations of the law are observed, they are at once prose- 
cuted by the Department of Justice and the guilty parties are 
punished. 

The Farmer and the Balance »f Trade. 

During the eighteen years, 1890-1907, the average annual ex- 
cess of domestic exports over imports amounted to $337,000,000 
and during the same time the annual average in favor of farm 
products was $362,000,000. from which it is apparent that there 
was an average annual adverse balance of trade in products other 
than those of the farm amounting to $35,000,000, which t&e farm- 
ers offset and had left $337,000,000 to the credit of themselves and 
the country. 

Taking- the business of 1907, the comparison is much more 
favorable to the farmers than during the eighteen-year period, 
since the value of domestic exports of farm products over im- 
ports was $444,000,000. 

During the last eighteen years there was a balance of trade 
in favor of farm products, without excepting any year, that 
amounted to $§,512,000,000. Against this was an adverse bal- 
anct of trade in products other than those of the farm ©f 
$456,008,096, and the farmers not only canceled thirs immense 
obligation, but had enough left to place $6,056,000,000 to the 
credit of the nation when the books of international exchange 
were balanced. 

These figures tersely express the immense national reserve 
sustaining power of the farmers of the country under present 
quantities of production. 

The health of our people is being safeguarded by inquiry into 
importations of food from foreign countries that contain sub- 
stances deleterious to health. The United States is no longer 
the dumping ground for food stuffs that are forbidden sale in the 
countries where they originate. 

An aim of the Department is to make the American indepen- 
dent with regard to everything that can be produced in our 
latitudes. Corps of scientists have been placed in each of the new 
island groups that have lately come under our jurisdiction for 
the purpose of helping them to produce what can not be grown 
in the continental United States. 

The Department of Agriculture is furnishing information re- 
garding the requirements and possibilities of irrigation, both in 
the arid regions of the United States and as an aid to agriculture 
in the humid East. This inquiry determines the amount of 
water needed to give the best results, the time when it should be 






DEPARTMENT OF AGRICULTURE. 389 

applied, and the methods of application best suited to different 
localities and different crops. The evils of too much water, re- 
sulting in the ruin of large areas which were highly productive 
a few years ago, are being investigated, with a view to prevent- 
ing not only the ruining of crops which get too much water, but 
of those on equally fertile soil which are deprived of the oec- 
essary water supply. The economic use of water and the in- 
troduction of plants from foreign countries where the rain full 
is light are extending crop growing over large areas that have 
been unproductive. 

See "Agricultural Prosperity," and "Value of the Factory to 
the Farmer." 



J^*x ^f ^ »hat we mean wken we apeak of au honest 
and stable currency. We mean tke same thing from u -ur 
to year.- President Roosevelt's speech aceeptlug mot 



ination. — '," — ~ M ° m " 

The greatness of oar Nation, as shown in the struggle 
or the tlvli War, is bow everywhere recognized, and in 
t h ?,.?. er, *, wec X iv * * f tort r years there is none to decry or 
belittle it.— Hon. Wa. H. Taft, at Rjverside Park, New York. 

Class appeals are dishonest * * * ; they calculate to 
separate those who should be united, for our ecouemle in- 
terests are co in man and indivisible.— 3laj. McKinley to Com- 
mercial Traveling Men's Republican Club, September 26, 

A currency wortb less than it purports to be worth 
will in the end defraud not only creditors, but all those 
who are engaged in legitimate business, and none more 
surely than those who are dependent upon their dally labor 
for their daily bread. — Hayes. 

The enormous effort of the whole people as a Nation, 
and the burdens they gladly assume to maintain the uiUIohhI 
integrity, and to cut out the cancer of slavery that was 
eating away our national life, do not grow anv leas, from 
an historical standpoint, as the decades pass.— Hon Wm. H. 
Taft, at Riverside Park, New York. 

Pate has decreed, and her decrees are forever irrevers- 
ible, that -we shall dwell in perpetual unison. Political deniu- 
gegues, for selfisb ends, and senseless agitators canuot dis- 
turb the ties whieh bind us together with more than a Ti- 
tan** power. — Hon. C. W, Fairbanks, at Lancaster, Mass.. June 
SO, 1003. 

The only substantial steps which have been really taken 
to stop the abuses and oppression attempted by the irre- 
sponsible holders of great wealth and corporate power, 
have been by the Republican party. — Hon. Win. H. Taft, at 
Greensboro, North Carolina. 

The menace of 16 to 1 still hangs aver us with ail its dire 
consequences to credit, confidence, business, and activity: 
the enemiCs of sound money are rallying their scattered 
forces. The people must once more unite and overcome the 
[advocates of repudiation. — President McKinley to the Noti- 
fication Committee, July 12, 1900. 

la spite of the general comfort, there hare been made 
manifest by signs not te be misunderstood, a quieUen i ui> 
of the public coascience and a demand for the remedy of 
tibnses, the outgrowth of this prosperity, and for a higher 
standard of business integrity. Every lover of his country 
should have a feeling of pride and exaltation in thin e> i- 
rtence thnt our society is still seund at the core. — Hon. AN m. 
H. Taft, at Columbus, ©bio. 



Money indebtedness is not the only obligation \% e in- 
curred and assumed in the great civil war. There tva* a 
still greater debt, nm everlasting obligation thnt could never 
he :»ald ia fn!l. Hat in the year* that have followed, the 
Republican i>arty has inauunrnted and developed pension 
jfaws under which over three and one-linlf billion dollars 
•have been paid to disabled veteran* or to the survivors 
»f those who gave their lives for their rounlrj and tlielr 
Oag. This peusion system, a product of the policy pf the 
Republican party, has no precedent in hist or j uuj no equal 
in Justice and generosity uiuong the nations of the earth. 
—Hon. James S. Sherman. 



One vital, dominating fact confront*, the Democratic 
party which no oratory, which no eloquence, which no 
rhetoric can obscure: BRYAN'S NOMINATION MEANS I v. I '■ 
ELECTION.— New York World. 



THE DEPARTMENT OF COMMERCE 
AND LABOR. 



This newest of the nine executive departments of the gov- 
ernment has' been developed under the McKinley-Koosevelt ad- 
ministration. It was created by the Act of February 14, 1903, 
which makes it the province and duty of the department "to 
foster, promote, and develop the foreign and domestic commerce, 
the mining, manufacturing, shipping, and fisheries industries, 
the labor interests, and the transportation facilities of the United 
States." The department was organized by Hon. George B. 
Cortelyou as the first Secretary of Commerce and Labor. On 
his appointment as Postmaster-General he was succeeded by Hon. 
Victor H. Metcalf, of California, who in turn was succeeded 
in December, 1906, by Hon. Oscar S. Straus, of New York. Sec- 
retary Straus has had a varied experience in both business and 
public life, peculiarly qualifying him to discharge the duties of 
his position. He has stated his policy as head of the depart- 
ment to be "to do for labor everything that the law permits 
the department to do, and to give to manufacturers all the 
knowledge the department can secure ; in short, to conduct the 
department for the best interests of the industrial classes, em- 
ployers and employees alike." 

The Bureau of Immigration and Naturalization has entered 
upon an important new phase of work in preventing fraudulent 
and careless practices in conferring citizenship upon foreigners. 
Another piece of constructive work undertaken by this Bu- 
reau is the collection and dissemination of information regard- 
ing opportunities for immigrants in different sections of the 
country. The Bureau of Corporations is a bureau of publicity 
with reference to industrial, combinations, and its reports have 
served to terminate or prevent serious evils, quite aside from 
the value of its investigations in prosecuting wrong-doers. "The 
work of these two bureaus is more fully described elsewhere 
In this volume. 

Bureau of the Census. 

Of the Government's statistical bureaus the lanrest is tl 
permanent Census Office, created in 1902 and attached to the 
Department of Commerce and Labor on its organization. In 
the intervals between the decennial counts of population the 
Census Bureau is occupied in preparing reports on a large 
number of special subjects, including a manufacturing census 
taken midway between the censuses of population and published 
in the form of bulletins. The Bureau publishes annual sta- 
tistics of cities of thirty thousand or more population, of births . 
and deaths, and of the supply and distribution of cotton. The 
Census Bureau issues cotton-ginning reports semi-monthly, and 
arrangements have been made with the statistical bureau of the 
Department of Agriculture by which the reports of the two 
bureaus on cotton production are brought into harmony with 
each other, and made public so far as possible on the same 
dates and in such a manner as to reduce to a minimum any 
possible disturbing effect upon the markets. 

The establishment of the permanent Census Bureau has made 
possible a much needed work for the local registration of births 
and deaths, resulting in a rapid improvement of American vital 
statistics. The municipal statistics compiled by this bureau have, 
resulted in checking undue extravagance and correcting unwise 
parsimony, and are thus among the most important agencies 
for improving municipal government. 

390 



DEPARTMENT OF COMMERCE AND LABOR. 301 

The Bureau of Labor. J 

The Bureau of Labor was originally organized at the be- 
ginning- of 1885 under the Department of the Interior. In 
1888 it was made an independent department (though under 
a commissioner and not a secretary), but on the establishment 
of the Department of Commerce and Labor it naturally became 
a bureau in the new department. Its inclusion in this de- 
partment was opposed by some labor interests, ambitious to 
have a Secretary of Labor with a seat in the Cabinet, but Labor 
organizations now express themselves as satisfied with imme- 
diate representation in the Cabinet through the Secretary of 
Commerce and Labor. 

The purpose of the Bureau of Labor is "to acquire and diffuse 
among the people of the United States useful information on 
subjects connected with labor, in the most general and com- 
prehensive sense of that word, and especially upon its relation 
to capital, the hours of labor, the earnings of laboring men and 
women, and the means of promoting their material, social, in- 
tellectual and moral prosperity " The imblications of the bu- 
reau consist of amiual statistical reports on various subjects 
affecting the interests of labor, a series of additional special 
reports, and a bi-monthly bulletin containing articles of timely 
interest, and also, in each issue, digests of state labor repents 
and of foreign labor and statistical documents, current labor 
legislation, and court decisions affecting labor. At present 
the bureau is engaged mainly upon an exhaustive investigation 
of all the conditions surrounding woman and child labor in this 
country, from which important results, both scientific and leg- 
islative, are expected. 

The Erdman Act of 1898 provides that whenever a contro- 
versy arises between an interstate railroad and its employes seri- 
ously interrupting or theatening to interrupt the business of the 
railroad, the Chairman of the Interstate Commerce Commission 
and the Commissioner of Labor, at the request of either party to 
the controversy, are required to use their best efforts to settle 
the same by mediation and conciliation, or, failing such ami- 
cable settlement, by arbitration, and in recent years it has been 
successfully employed in a number of cases. A detailed statement 
regarding the work of this important Bureau is published on an- 
other pag-e. 

The interest of the present Administration in the welfare of 
the wage-earners of the country has reflected itself particularly 
in the activities of the Bureau of Labor. 

As a result of the exposure of the labor conditions in the 
packing-houses of Chicago, in which work the Bureau of Labor 
cooperated, the working conditions of thousands of men and 
women wage-earners have been great'ry improved. 

Through the investigations made b}- this Bureau and the co- 
operation of the Department of Justice, prosecutions have been 
instituted for violations of the eight-hour law on Federal work. 
and a more effective enforcement of this important law has been 
secured. 

It was largely through the investigations and reports of the 
Bureau of Labor on the subject that the interest was aroused 
which secured the passage of the compensation act tor Govern- 
ment employees, which represents the first large recognition on 
American statute books of a principle vitally important to 
wage-earners, and one of the most notable steps that has yet 
been taken in comprehensive social legislation. 

One of the most important developments in recenl years 
touching the relations of wage-earners and employers has un- 
doubtedly been the appearance of Government representatives in 
industrial disputes. Under a law passed by a Republican Con- 
gress the chairman of the Interstate Commerce Commission and 
the Commissioner of Labor are constituted a board of mediation 
in any industrial dispute affecting railways engaged in inter- 
state commerce and their employees engaged in train operation. 

The services of this board are available in any such dispute, 
upon the application of either side. In the past two years over 
twentj r appeals have been made to this board \\u- mediation in 
large and important disputes, and in some instances in the larg- 



3«S ^ DEPARTMENT OF COMMERCE AND LABOR. 

est and most important disputes that have ever threatened in 
the railroad world. In no case in which the services of the medi- 
ators have been invoked before the strike occurred has it failed 
to bring about a peaceful adjustment of existing difficulties, and 
one that was accepted as satisfactory by both sides. The enact- 
ment and the administration of this law would probably be 
pronounced by those who have had experience of its advantages 
a3 one of the most important services that the Government could 
render to the interests of wage-earners. 



The Bureau of Manufactures. 

It is the special province of the Bureau of Manufactures 
to foster, promote, and develop the manufacturing industries 
of the United States and markets for the same at home and 
abroad. This it does mainly by gathering and publishing infor- 
mation concerning industries, trade conditions, and trade markets, 
Consular reports of commercial interest are transmitted from 
the State Department to the Department of Commerce and 
Labor and issued by the Bureau of Manufactures in its Daily 
Consular and Trade Reports, together with occasional reports 
from special agents of the Department engaged in collecting 
information abroad for the benefit of American manufacturers. 
When information is received which is believed to be of special 
importance to particular industries, as, for example, by pointing 
out particular points for the sale of their product, it is com- 
municated directly to those most concerned, a plan much ap- 
preciated by the manufacturers. Samples and photbgraphs of 
all kinds of cotton goods sold in China, for example, have been 
obtained and distributed to commercial bodies and textile schools, 
and the agent who studied British cotton manufactures after- 
wards conferred with manufacturers in the South, explaining 
British methods and showing samples. Thus the information ob- 
tained is made of the utmost possible practical value to Ameri- 
can industries. The Bureau of Manufactures collates and ar- 
ranges the tariffs of foreign countries in convenient form for 
the information of exporters, and also publishes an annual 
volume on "Commercial Relations of the United States." 



A National Council of Commerce. 

With a view to bringing the Bureau of Manufactures and 
the Department generally into closer touch with commerci u 
bodies, such as manufacturers' associations, chambers of com- 
merce, and boards of trade, a National Council of Commerce 
has been organized on the initiative of Secretary Straus, with 
an advisory board as the direct means of communication. It is 
hoped that all the commercial bodies in the country will join 
the Council of Commerce, and that it will prove of much value 
as a practical guide to the work of the Department in pro- 
moting commerce, and especially as a medium for the exchange 
of commercial information. 



The Bureau of Navigation. 

The Commissioner of Navigation has general superintendence 
of the merchant marine of the United States His reports are a 
veritable mine of information relative to the shipping indus- 
tries, and also contain suggestions regarding desirable amend- 
ments to the navigation laws. Under the Bureau of Navigation 
are shipping commissioners stationed at all the principal ocean 
ports. Their functions are to superintend the engagement ai:\' 
discharge of seamen, to see that the men engaged go on board 
at the proper time, to facilitate the making of apprenticeships 
to the sea service, and to keep registers of the names and charac- 
ters of seamen, thus serving as employment agents with power 
to enforce the provisions of law for the protection of the interests 
of seamen. Through their efforts "shanghaiing" and "crimping," 
the chief evils connected with the sea service, are being system- 
atically and effectually stamped out. 



• 



DEPARTMENT OF COMMERCE AND LABOR. 393 

The Steamboat Inspection Service. 

Secretary Straus has actively interested himself in the im- 
provement of the Steamboat Inspection Service, with important 
results in greater safety of travel by water. The annual in- 
spections required by law having proved an insufficient guaranty 
of safety, he has ordered that all excursion and ferry boaljs, 
and so far as possible other passenger vessels, shall be inspected 
four times a year. All new life-preservers are examined, with 
the result that very few defective ones are now manufactured, 
and none are allowed to be used. Explosions are guarded against 
by testing boiler plates at the mills. During 1907 the number 
of fatal accidents to steamboats showed a marked diminution. 



Aids to Navigation. 

No less important are the steps which have been taken for 
the improvement of the Lighthouse Service. Standard models 
have been adopted for Lighthouse tenders and light-vessels, 
which will be more economical and at the same time more 
efficient than the old models. The experimental introduction 
of incandescent oil vapor as an illuminant has proved so suc- 
cessful in increased candle power and diminished consumption 
of oil that the new sytem is being installed as rapidly as the 
available funds permit. The work of the Coast and Geodetic 
Survey in publishing tide tables, detailed instructions to pilots, 
and other practical information, is also of much value to navi- 
gators. 

The Bnreai of Standards. 

The Bureau of Standards, created in 1901, has been developed 
in the few years of its existence into an important source of 
precise scientific authority of great value both to scientific in- 
vestigators and to commercial interests and consumers. Its 
work is of great assistance both to industrial establishments 
and to other scientific laboratories; and it cooperates with muni- 
cipal authorities in the establishment of their testing plants by 
verifying their standard* and otherwise. Conferences of state 
and local officials on the weights and measures of the United 
States are held annually, under the auspices of the Bureau, and 
together with the published proceedings are serving to awaken 
interest in the use of accurate commercial weights and meas- 
ures, and promoting uniformity in their inspection. 

Tke Bureau of Fisheries. 

The Fish Commission, formerly an independent establishment, 
was transformed into a bureau of the Department of Commerce 
and Labor on its organization. The Bureau of Fisheries is 
doing an important work in the introduction and propagation of 
useful fishes and shellfish. Many millions of fish eggs and 
young fishes are supplied every year to slate fish Commissions, 
and eggs are also exchanged with foreign countries. The 

bureau also gives expert advice to state officials and to indi- 
viduals on matters connected with fish culture, capture, and 
markets. Promising experiments are being made in the arti- 
ficial fattening of oysters, and experimental sponge plantations 
have been established in Florida in order to develop a commer- 
cial system of sponge culture. 

Bnrean of Stnt iM it*.*. 

The Bureau of Statistics, which receives, analyses and pub- 
lishes the statistics of the foreigii commerce of the I 
States, has enlarged its scope of operations to include records of 

the internal commerce on the ^vvnt lakes and at interior trade 
centers, and a statistical abstrad of the t ra le of the principal 

Countries of the world. Its statistical abstrad of the I 
States contains much miscellaneous information, in condensed 
form, regarding population, industries, commerce, aud b 
conditions in the Tinted states at the latest available date, com- 
pared with that of earlier years. 



394 DEPARTMENT OF COMMERCE AND LABOR. 

Work of the Bureau of Immigration and Naturalization 

The past four years have constituted a period of importance 
unprecedented in the history of immigration of foreigners into 
the United States. Not only is this true as to the numbers that 
have come to us in that time, but even to a more marked extent 
with respect to the supervision that has been exercised and the 
new and important steps taken and advanced methods adopted 
to solve a very interesting and vitally important economical 
problem. 

On March 3, 1903, an immigration act, more comprehensive 
and far reaching than any theretofore passed by Congress, was 
approved by the President. On the first of the following July, 
the Bureau of Immigration was transferred to the then recently 
organized Department of Commerce and Labor, and regulations 
were promulgated and detailed plans arranged for carrying out 
the will of the people, as expressed by Congress, with respect 
to a restriction along certain lines of the influx of aliens. As 
new experience was added to that gained in enforcing prior 
legislation, and more adequate revenues secured under the in- 
crease of the head tax on aliens to $2 per capita, it was possible 
to bring about more and more effective measures to attain the 
two objects of the law. It is worth while to note what those 
two objects are, for#they are a true indication of what the de- 
clared policy of the United States is with respect to immigration. 
In the first place, then, the law (or certain features of it) is 
intended to protect the American laborer, skilled or unskilled, 
from an unfair, and possibly eventually disastrous, competition 
with the laborers of foreign countries, and thereby maintain the 
high standards of living which have for so long been the pride, 
not only of the laboring classes, but of all true and right-think- 
ing citizens of this country. And, secondly, the law contemplates 
the object of preventing the entry of foreigners who, by reason 
of some individual defect— moral, men%l or physical— are not 
thought to be desirable additions to o^r body politic; not of 
foreigners generally, nor of any particular race or class of 
foreigners, but of those who are individually unfit. 

The energies of the Bureau of Immigration have been directed 
to the accomplishment of these two objects, and such efforts 
have, particularly in the past four years, been rewarded with 
remarkable success; for by the beginning of that period the 
rules and regulations for the application of the terms of the 
statute to the existing practical situation had become thoroughly 
operative at all points. 

In February, 1907, the Congress again took an advanced posi- 
tion with respect to immigration, passing the new Immigration 
Act which was approved bv the President on the 20th of that 
month. While this act added to prior law in no radical or even 
marked respect (with two exceptions hereinafter mentioned) it 
contained a number of minor changes, suggested by the ex- 
periences of four years' enforcement of the Act of 1903, removing 
difficulties of administration and strengthening clauses designed, 
by the attachment of penalties to certain kinds of violations, to 
produce discouragement of evasions and violations of the law s 
spirit; so that it constitutes a distinct advance in the right di- 
rection on the question of the exclusion of undesirable aliens. 

Thus, throughout the period under consideration, it has been 
possible to proceed with ever increasing effectiveness in the rejec- 
tion at the ports of this country of aliens whose moral standards 
render them undesirable, or who are insane, idiotic, feeble- 
minded or otherwise mentally deficient, or who are afflicted with 
tuberculosis or loathsome or dangerous contagious diseases, or 
who are paupers or likelv to become charges upon the public. 
or who are seeking to enter- in pursuance of prearranged em- 
ployment and therefore to the detriment of domestic labor with- 
in the meaning of the law; and to also proceed with the removal 
from the country of those found, within three years after entry, 
to be unlawfully here for reasons of like character. In this 
latter respect special efforts have been made to bring about 
th- removal from the United States of anarchists and other 
criminals, by making the best use of the machinery furnished by 
the law and in addition securing the cooperation of the local 
police authorities throughout the country. 



DEPARTMENT OF COMMERCE AND LABOR. 395 

Contract Labor Excluded. 

In no respect has this strengthening of the law been more 
marked and effectual than in the clauses relating to contract 
labor; and as the enforcement of 1 lie new statute is proceeded 
with, it is anticipated, in the light of results already accom- 
plished, that it will be of almost incalculable benefit to American 
laboring men. By making- the terms of these particular clauses 
more comprehensive, and at the same time more specific, Con- 
gress has furnished the Government with an instrument with 
which to more effectually than ever before prevent the importa- 
tion of foreign laborers by the apprehension of such laborers at 
the ports, and by the still better method of convicting and pun- 
ishing parties who attempt to make importations. Thus, in sec- 
tion 2 of the Act, an alien contract laborer is declared to be a 
person who has been "induced or solicited to migrate to this 
country by offers or promises of employment, or in consequence 
of agreements, oral, written, or printed, express or implied, to 
' perform labor in this country of any kind, skilled or unskilled ;" 
and in section 4 it is declared to be a "misdemeanor for any per- 
son, company, partnership, or corporation, in any manner what- 
soever, to prepay the transportation or in any way to assist or 
encourage the importation or migration of any contract laboi*er 
or contract laborers into the United States," so that, as has re- 
cently been heli. by one of the District Courts, it is still possible, 
as it was under the old law, to proceed civilly under section 5, 
for a penalty of one thousand dollars for each offense, and also 
possible, as was not the case before, to proceed criminally in cer- 
tain violations for the imprisonment of the offender under sec- 
tion 4 of said act taken in conjunction with section 5440 of the 
Kevised Statutes. The advantages of the new law on contract 
labor are, therefore, obvious, and the laboring men of the United 
States are to be congratulated on the strengthening of their bul- 
wark of defense against foreign competition. 

Fraudulent Naturalization Checked. 

The act of June 29, 1906, changed the designation of the 
Bureau of Immigration to the "Bureau of Immigration and 
Naturalization," and placed under that Bureau all matters con- 
cerning the naturalization of aliens. The centralization in this 
Executive Department of the supervision over the process of 
naturalization renders it practicable to greatly diminish, if not 
entirely to eliminate, fraud by preventing illegal naturalization 
based on false testimony. It also enables the Government to 
more readily detect irregular and fraudulent naturalization and 
to cancel certificates of naturalization hitherto illegally obtained. 
These results are accomplished by means of investigations by 
the naturalization examiners, and in the short period which has 
intervened since the act became operative rapid progress has 
been made in the enforcement of this distinctly reformatory 
measure. No piece of legislation enacted in recent years trans- 
cends this act in importance or promises more for the uplift and 
moral improvement of our alien population. The "inestimable 
heritage of citizenship" was daily being cheapened and degraded, 
when the President appointed, in the spring of 190.V an execu- 
tive commission to investigate and report to him on the subject 
of naturalization in the United States, the report of which com- 
mission was referred to Congress and formed the basis of the 
reform measure above mentioned. "While quite Likely, as the 
administration of the law is proceeded with, some changes In 
detail may be found necessary or expedient, it. can !>■ confidently 
stated that this piece of legislation, as it has l>e/u and is now 
being applied by the Naturalization Division of the Bureau, work- 
ing in harmony with the Department of Justice, const it n1 
enormous stride towards the attainment of ideal conditions with 
respect to conferring citizenship upon foreign born residents 
of this country. From being in many respects a purely per- 
functory procedure, naturalization has been changed into a dig 
nified and even Impressive ceremony, and the methods of making 
application and preparing therefor have been improved Prom 
an almost chaotic condition into a carefully safeguarded system. 



396 DEPARTMENT OF COMMERCE AND LABOR. 

Certificates of citizenship are no longer miscellaneous illy printed 
slips of common paper, but are engraved documents of beauty 
and value, prepared in such a manner as to be practically in- 
capable of being- counterfeited. And the foreigner is rapidly 
being taught that citizenship of this great Eepublic is not a 
boon to be lightly and carelessly conferred or to be accepted in 
a spirit of thoughtlessness or levity ; but is a privileged state 
into which he can gain entrance only by a display of his fitness 
therefor, and the observance of set and absolute requirements. 
In the short period tHis division has existed, nearly 50,000 peti- 
tions for naturalization have been filed ; about half of which 
have been granted and certificates of naturalization issuec. there- 
under, and about 1,200 denied, the balance remaining pending. 

Fiadlns EmplofmcHt for ImmtigrraMts and Workmen for 

Einijloyees. 

By section 40 of the Act of February 20, 1907, Congress made 
provision for the establishment in the Bureau of Immigration 
and Naturalization of a Division of Information, which might, 
under the terms of the law and in view of the evident intent 
thereof, be more accurately designated as a "Division of Infor- 
mation and Distribution." This in many respects is the most 
important piece of legislation on immigration ever enacted. The 
main objection to the greatly increased immigration of the past 
decade is because of the congestion and the evils consequent 
thereupon in our larger Atlantic seaport cities. While some such 
cities have been complaining of the enormous increase of their 
foreign population, other and less densely populated sections of 
the country have been suffering to an infinite degree for lack of 
the labor necessary to a development of their resources. By this 
provision at least the nucleus has been formed for the building 
up of a system of distribution that will not only relieve the con- 
gested and sparsely settled sections, respectively, by more nearly 
balancing them, but at the same time will so place the aliens 
landing on our shores that they can with the greatest readiness 
be assimilated into our permanent population and eventually into 
the body of our citizenship. While the law is of very recent 
enactment, the Bureau has not been slow to seize upon its pro- 
visions for the amelioration of existing conditions, and notable 
and emcouraging progress has even already been made in effectu- 
ating its purposes. The Division has been systematically organ- 
ized under a competent chief in the Bureau at Washington ; a 
branch office established and equipped in New York City ; ar- 
rangements inaugurated for the procurement of reliable infor- 
mation from all sections of the country for distribution to aliens 
landing at the large ports ; and active operations for the actual 
locating of settlers begun, nearly 500 having already at the very 
start been placed in desirable positions where their services are 
urgently needed. 

In one other respect the new law contains a departure — one 
made particularly in deference to the wishes and needs of Ameri- 
can labor. By a clause attached to section 1 thereof, provision 
was made "That whenever the President shall be satisfied that 
passports issued by any foreign government to its citizens to go 
to any country other than the United States or to any insular 
possession of the United States or to the Canal Zone are being 
used for the purpose of enabling the holders to come to the con- 
tinental territory of the United States, to the detriment of labor 
conditions therein, the President may refuse to permit such citi- 
zens of the country issuing such passports to enter the conti- 
nental territory of the United States from such other country or 
from such insular possession or from the Canal Zone." And in 
pursuance thereof the President, on March 14, 1907, issued a proc- 
lamation ordering that "Japanese or Korean laborers, skilled or 
unskilled, who have received passports to go to Mexico, Canada, 
or Hawaii, and come therefrom, be refused permission to enter 
the continental territory of the United States." Under this law 
and proclamation it has been possible even in the short period 
intervening to gradually bring about a fairly effective control of 
the influx of Japanese laborers at which the laboring men, par- 
ticularly those of the West, were becoming somewhat alarmed. 



DEPARTMENT OF COMMERCE AND LABOR. 397 

For instance, the statistical records of the Bureau show that in 
the month of January, 1907, 1,359 aliens of the Japanese race 
were admitted to continental United States, as against 495 in 
January, 1908 ; that the admissions in February, 1907, ana 1908, 
were 813 against 468 ; and that the figures for March of the two 
years were 1,033 against 491. As the regulations and machinery 
for the enforcement of the law and proclamation are perfected 
even a far greater decrease may be expected with certainty. 

Enforcing the Chinese Exclusion Laws. 

The statute books probably do not contain any legislation 
more difficult of exact enforcement than the Chinese exclusion 
laws. The fact that they differ so radically from other laws, 
added to the fact that in many sections of the country there is 
but little sympathy with the more severe portions thereof, op- 
erates against an efficient application of their provisions to 
peculiarly difficult conditions. Despite these circumstances and 
the fact that much criticism of a rather serious nature arose in 
certain quarters during the maintenance of the Chinese boycott 
against American products, commencing early in 1905, the en- 
deavors to make said laws effective of their object, viz; the ex- 
clusion of Chinese coolies, have been constant, and have been by 
no means unproductive of results. The most serious difficulty, 
perhaps, of all those encountered in the administration of these 
laws, has been brought about by the apparently concerted efforts 
of smugglers and promoters residing in the United States and of 
persons in China interested in exploiting- the Chinese laborer. 
Having this fact in view, as well as the mischief likely to result 
from the boycott, the claimed basis of which was the assertion 
that Chinese of the exempt classes, although in possession of the 
legal evidence of their status, were subjected to strict, time- 
consuming, and "humiliating" examinations upon arrival at ports 
of this country, the President, in the spring of 1905. adopted a 
course which has resulted in a great improvement of conditions 
in both China and this country; so that instances of the use of 
fraudulent certificates in securing- the admission of Chinese 
coolies, and complaints of unduh r exacting examinations of 
bona fide members of the exempt classes at ports of this country, 
have been reduced to a minimum; the boycott is a thing of the 
past, and the alarm it created is almost if not quite forgotten. 

The enforcement of the Chinese exclusion laws along our 
land borders, which until a few years ago was almost impossible, 
has gradually been placed upon a workable basis. This is par- 
ticularly true of the Canadian boundary, where conditions, com- 
paratively, approach the ideal, and even on the Mexican border 
much improvement has been accomplished by the most strenuous 
exertions. 

The policy has been to secure just so far as possible such an 
enforcement of the law as would protect the country from the 
entry of the coolie classes, and at the same time would give no 
offense to the Chinese nation or to those classes the exclusion of 
which is not intended and an encouragement of intercourse with 
which is apparently essential to the maintenance and advance- 
ment of our commercial relations with the great Eastern Em- 
pire. That these are the correct principles upon which to pro- 
ceed is too obvious to call for an,y extended explication. That 
they have been pursued and are being pursued to the marked 
advantage of this country, commercially and otherwise, is readily 
capable of demonstration. 

BUREAU OF CORPORATIONS. 

The work of bne Bureau of Corporations, a pari of the, De- 
partment of Commerce and Labor, is detailed in the chapter en- 
titled "Control of Corporations." 



There Ujin been considcrnbh 1 debate n«* to whether the 
Constitution follow* the Has;. No matter how diverse mid 
conflicting: our opinions may be on (h's suitjoci. there i* 
one opinion thnt «p nil entertain, and thnt l« thai the 
American »cbool-hoose follows the Baa.— lion. C. w. Pair- 
hnnkx. in V. 9. Senate. February 22, 1902. 



TREASURY DEPARTMENT. 



The work of the Treasury Department is so intimately re- 
lated to the questions of currency, revenue, commerce and current 
business conditions that it has been found necessary to include 
under the chapters on the Money Panic of 1907, the Currency Law 
of 1908, Prosperity, Commerce and the Merchant Marine many of 
the statements regarding the work of this .department. The 
reader is referred to those chapters and to the index which occu- 
pies the opening pages of this book for those features of the 
work of the Treasury Department which do not appear in this 
chapter. 

CUSTOMS. 

Drawback. 

Under section 30 of the tariff act of 1897, providing for a re- 
fund of 99% of the duties paid on imported materials used in the 
manufacture of exported articles, nearly five and one-half million 
dollars were paid to the manufacturers of this country during 
the year 1907. In 1900 the duties refunded amounted to a little 
over three and one-half million dollars, an increase in 1907 of 
nearly two million dollars. 

Applications by manufacturers for the establishment of rates 
for the allowance of drawback on their products have increased 
more than 125% since 1900, which shows that the drawback plays 
an important part in the establishment and maintenance of for 
eign trade. In many instances this rebate of duties has been the 
factor that enabled our manufacturers to successfully compete 
with foreign producers in the markets of the world. 

Efforts have been directed towards relieving the regulations 
under which drawback is paid of all requirements involving diffi- 
culty on the part of the manufacturer in complying therewith, 
and to amending and simplifying the same to meet new conditions 
that arise, the object being to give to manufacturers the benefit 
of the drawback act, without disturbing their business methods or 
imposing upon them burdensome requirements. At the same 
time the revenue has been properly safeguarded. 

Transportation of Foreign Merchandise Under Bond. 

To facilitate importations to interior ports, the privileges of 
the act of June 10, 1880, known as the immediate transportation 
act, have been extended to both ports of entry and delivery. 

The transportation of imported merchandise has been greatly 
simplified by the adoption of one form of bond for carriers for 
the various kinds of merchandise and a form of carriers' special 
manifest of a distinctive color for goods moving under transpor- 
tation entries. 

To facilitate further the transportation of merchandise des- 
tined from one foreign country to another across our territory, 
the individual bond of the shipper has been discontinued, such 
shipments now being charged against the general bond of the 
carrier. 

Also a uniform system of bonding has been adopted whereby 
the common carrier is required to execute but one bond in the 
sum of $100,000. and the penalties are fixed for failure to comply 
with the conditions of the bond. 

These methods are better adapted to present business con- 
ditions. 

Merchandise Imported by Mail. 

During the past ten years many postal and parcels post con- 
ventions have been concluded between the United States and for- 
eign countries under the terms of which dutiable merchandise 
may be imported. The growth of these conventions made neces- 
sary the preparation of elaborate regulations, in order, first, that 

398 



TREASURY DEPARTMENT. 309 

parcels might be promptly delivered to the addressees, and, sec- 
ond, that the revenue should be properly protected. After careful 
investigation by the Treasury and Post Office Departments joint 
regulations were issued which have greatly increased the effi- 
ciency of the service. 

Basjyage. 

For many years complaints were lodged with the Treasury 
Department regarding delays incident to the passing through the 
customs of passengers and baggage from foreign countries. The 
practice was to assemble the passengers in a room on board the 
vessel on which they arrived and there have them prepare and 
subscribe to their baggage declarations. When this was done the 
baggage, upon arrival of the vessel at the clock, was unladen 
and examined. A careful investigation was set afoot in order to 
determine what relief, if any, might be granted in such cases. 
This investigation disclosed the fact that needless confusion, de- 
lay and inconvenience were due to the existing practice. There- 
upon regulations were promulgated whereby the declarations of 
passsngers are prepared aboard ship en route to the United 
States, delivered to an officer of the ship, and by him turned over 
to the customs officers upon reaching the United States. These 
declarations bear a coupon which is detached by the passenger at 
the moment of preparing his declaration and by him handed to 
the proper customs officer for identification upon arrival at the 
dock. By this method passengers do not come in contact with 
the customs officers until the vessel docks. 

That the existing regulations on the subject have given gen- 
eral satisfaction is evidenced by the facts that complaints have 
ceased and many letters of commendation have been received. 

Life-Saving Service. 

The Life-Saving Service has been extended during the last four 
years by the addition of eight stations, making the entire number 
of station* now upon the sea and lake coasts of the United States 
281. Many improvements have been made in the methods and ap- 
paratus employed in effecting rescues, the most notable being the 
successful application of motive power to the large self-righting 
and self-bailing lifeboats. 

It having become necessary to increase the inducements for re- 
taining trained men in the service and securing competent re- 
cruits, the President, upon the recommendation of the Secretary 
of the Treasury, urged the matter upon the attention of Congress, 
with the result that an act was passed at the last session increas- 
ing the compensation of the field force as follows : District super- 
intendents, $200 per annum; keepers of stations, $100; surfman 
No. 1 in each crew, $5.00 per month ; also a ration or commuta- 
tion therefor at the rate of 30 cents per day for each keeper and 
surfman, equivalent to an increase for each man of $9.12 per 
month. This legislation gives substantial recognition to i most 
worthy and deserving class of Government employees who pur- 
sue a dangerous calling, and who annually save hundreds of lives 
and many million dollars' worth of property. 

Upon the recommendation of the Secretary of the Trensnry, 
also, an act granting authority for the transfer from the Treas- 
ury Department Library to the life-saving stations of such 
books as may be no longer needed in that library, passed both 
houses of Congress at its late session, but not in time for en- 
rollment and approval by the President before adjournment. 

Revenue Cutter Service. 

The act of April 16. 1908, "To inerease the efficiency of the 
Kevenue Cutter Service," is the most important piece oi' legisla- 
tion in recent years for the improvement* of the Revenue Cutter 
Service. It brought about a generaj reorganisation in the upper 
grades in the interest of efficiency and good administration. 
Legislation of this character was recommended to Congress by 
Secretary Corte'vou. and the measure received his earnest sup- 
port. Under this act two additional grades each in the I'm" and 
Engineer Corps were established, thereby affording greater op- 



400 TREASURY DEPARTMENT. 

portunity to officers for advancement, with a corresponding in- 
crease in the life and strength of the «orps. Twenty additional 
junior officers were authorized for duty as watch officers on the 
cruising cutters, which will enable the Department to properly 
officer the ships. The pay of the enlisted men was increased and 
provision made for placing them on waiting orders at three- 
fourths pay after thirty years of faithful service. This -ict has 
been followed by a marked decrease in the number of desertions 
and by an increase in contentment among the crews of the ves- 
sels. 

An increase in the pay of commissioned officers was brought 
about by the Army Appropriation Bill, approved May 11, 1908, so 
that officers of the Revenue Cutter Service receive the same pay 
and allowances as officers of corresponding rank in the army. 

During the past four years eleven vessels of all classes have 
been completed or authorized for the Revenue Cutter Service. 

The Service has been making every effort toward rendering 
assistance to distressed vessels, and its success along these lines is 
attested by the fact that during the fiscal year ending June 30, 
1907. the value of vessels assisted and their cargoes amounted to 
$9,196,097. 

Barenn of Engmring find Printing 1 . 

For some years past the quarters of this important branch of 
the Government service have been inadequate for the immense 
volume of business transacted, and extreme difficulty has been 
experienced owing to the necessity of crowding large numbers of 
employees into confined spaces. Ifnis condition of affairs will 
soon be remedied, however, for Congress, at its last session, 
upon the recommendation of the Secretary of the Treasury, au- 
thorized the purchase of a site and the erection of a building, 
and appropriated over two million dollars towards this purpose. 
The new building will embody the latest and most improved 
methods of construction, and will contain every provision for the 
health, safety, and comfort of the nearly four thousand employees 
that modern building and sanitary science can suggest. 

In the past four years there has been an increase in the out- 
put of the Bureau in paper money and securities for general use 
of nearly thirty-two per cent, and an increase in the number of 
employees on the rolls for labor of twenty-two per cent. The 
five hundred million dollars ($500,000,000) national currency 
authorized to be issued under act of May 30. 1908. is being pro- 
duced at the rate of four million dollars ($4,000,000) per day, 
so that in case an emergency should ever arise the currencj r can 
be distributed to relieve the situation without any delay. 

New Gold Coinage. 

For many years the inartistic designs of the coins of the 
United States have been the subject of criticism, no change ex- 
cept in minor details having been made in any of the coins for a 
number of years. 

In 1904 President Roosevelt took up the question of securing 
more artistic designs for the coins of the United States, and 
through his efforts Augustus St. Gaudens, the greatest of Ameri- 
can sculptors, was induced to undertake the preparation of de- 
signs of the double eagle and the eagle now being coined and 
placed in circulation. 

It can be truth%lly said that, without exception, the gold 
coins of the United States of the new design are the most artistic 
of those of any country in the world, the credit for which is due 
to the active interest taken by President Roosevelt successfully 
to accomplish this purpose. 

Pnblic Health and Marine Hospital Service. 

A National Bureau of Health was established under the Treas- 
ury Department by an act approved July 1, 1902, which reorgan- 
ized and added new public health duties to the United States 
Murine Hospital Service. An advisory board consisting of sanita- 
rians of established national reputations in their various lines of 
work was appointed for consultation with the Surgeon-General of 



TREASURY DEPART ME XT. 401 

the Public Health and Marine Hospital Service relative to the 
work, and investigations to be carried on in the Hygienic Labora- 
tory then in course of construction. This laboratory was founded 
for the investigation of infectious and contagious diseases and 
matters pertaining to the public health. Under this auspicious 
arrangement much valuable public healtn work has been done by 
the public health service, including important investigations on 
th-3 JoHov.ing subjects: 1. The presence and distribution of hook- 
worm disease in the United States. This is a subject of great 
sanitary and economic importance to a large number of our 
Southern States. 2. The cause of the prevalence of typhoid 
fever in cities. Typhoid fever has for some tone been unusually 
prevalent in many cities, and few sanitary subjects are of greater 
importance. 3. The relation of milk to the public health. This 
work has placed in the hands of health officers and physi- 
cians a report containing all available knowledge on the sub- 
ject. Few questions are causing as much agitation and interest 
on the part of' health officers and physicians as is that of milk, 
and possibly none are more important. The work done by the 
Service on the milk problem has been therefore of general utility. 
4. The practical uses and application of disinfectants. 

The Public Health Service inspects annually all establishuuuts 
manufacturing and selling in interstate commerce serums, anti- 
toxines and similar products used in the treatment of disease. 

In the summer of 1905 yellow fever became epidemic in New 
Orleans, and spread with such rapidity that it was soon oeyond 
the control of the local sanitary authorities, who then requested 
the Federal Government to take charge of its suppression. The 
Public Health Service immediately sent a corps of officers into 
the affected territory, who took charge of the work. The confi- 
dence shown on the part of the people living in the invaded ter- 
ritory and the lack of the usual dread and fear customary in yel- 
low fever epidemics were commendatory of the efficiency of the 
work done. 

In the summer of 1907 plague broke out in San Francisco. As 
in the previous epidemic of 1900. the local authorities again 
sought the aid of the National Public Health Service, who since 
that time have had charge of the eradication of the disease in 
San Francisco. 

This Bureau has charge of the national maritime quarantine. 
which prevents the introduction of epidemic diseases. It has also 
conducted the medical inspection of the millions of immigrants 
who have come to this country. 

Work of the Treasiry Department in Coirtuecttoa wit* Public 
Buildings from Jnly 1, 1904, to Mareh 1, 190S. 

On July 1, 1904, there were 375 buildings, exclusive of Marine 
| Hospitals and Quarantine Stations, completed and occupied, the 
| cost of which, including the amounts spent for the sites, exten- 
i sions, additions, and remodeling when required, $135,871,726.31. 
Since that date 120 buildings have been completed at an 
aggregate cost of $33,886,245.40, and four have been added by 
legislation and executive, orders. This makes a total of 499 pub- 
lic buildings, exclusive of the 43 Marine Hospitals and Quar- 
antine Stations, completed and occupied. 

In addition to the above, 30 buildings have been extended 
or remodeled, at a total expense of $3,509,397.20. 

The following is a summary of the cost of the public build- 
ings: 

499 completed and occupied $169,757,971.71 

Extending or remodeling 30 buildings 3,509,397.20 

, Total 173,267,368.91 



Mneh monev ha* teen ivent ov *e« har|»or« and tlie 
moiitlH of our river* at the *aa. but fomya tat Ivel y little 
upon the internal waterway* wh It'll nature ha* furnished 
to the connti'T, and whieh form klub>\n>s of travel from 
one border of it to the »taer. Tie eall from the eon u try for 
the development of 11 uolMhoiiKht-out plan for the Improve- 
ment of ail these waterway* la no emphatic* that it eannot 
longer be re*l*ted.— Hon. Wm. H. Taft, at Kansas City, Mo. 

N 



THE CONSERVATION POLICY. 



The policy of the conservation is a development of the pres- 
ent administration of President Eoosevelt. Its beginnings are 
to be found in parts of his annual message of 1906, dealing 
with public land questions. The first step in definite action to 
make ready a program was the appointment by the President 
of the Inland Waterways Commission ; and in his letter notify- 
ing the members of their appointment, the President formulated 
the fundamental principles of the policy. The' findings and 
recommendations of that Commission, transmitted to Congress 
by the President on February 26, 1908, with the special mes- 
sage which accompanied it, was the next step forward ; and 
the White House Conference of May 13, 14, and 15, 1908,' which 
was presided over by the President and attended by the Gov- 
ernors of the States and Territories, including Alaska, Porta 
Eico, and Hawaii, fairly launched the movement before the 
country at large. 

In his address before the National Editorial Association at 
Jamestown, Va., June 10, 1907, President Eoosevelt said : 

"The conservation of our natural resources and their proper use 
constitute the fundamental problem which underlies almost every other 
problem of our national life. Unless we maintain an adequate material 
basis for our civilization we can not maintain the institutions in which 
we take so great and so just pride ; and to waste and destroy our natural 
resources means to undermine this material basis." 

In his message to the 60th Congress, which assembled De- 
cember 2, 1907, President Eoosevelt said: 

"The conservation of our natural resources and their proper use 
constitute the fundamental problem which underlies almost every other 
problem of our national life. We must maintain for our civilization the 
adequate material basis without which that civilization can not exist. We 
must show foresight, we must look ahead. As a nation we 40 not only 
enjoy a wonderful measure of present prosperity, but if this prosperity is 
used aright it is an earnest of future success such as no other nation 
will have. The reward of foresight for this nation is great and easily 
foretold. But there must be the look ahead, there must be a realization 
of the fact that to waste, to destroy, eur natural resources, to skin and 
exhaust the land instead of using it so as to increase its usefulness, will 
result in undermining in the days of our children the very prosperity which 
we ought by right to hand down to them amplified and developed." 

In his letter inviting the Governors of all the States and 
Territories to meet with him at the White House, May 13, 14, and 
15, 1908, to discuss the question of the Conservation of the Na- 
tion's Natural Eesources the President said, in part : 

"It seems to me time for the country to take account of its natural 
resources, and to inquire how long they are likely to last. We are pros- 
perous now ; we should not forget that it will be just as important to 
our descendants to be prosperous in their time. 

"Recently I declared there is no other question before the nation of 
equal gravity with the question of the conservation of our natural re- 
sources, and I added that it is the plain duty of us who, for the moment, 
are responsible to take inventory of the natural resources which have been 
handed down to us, to forecast the needs of the future and so handle 
the great s'ources of our prosperity as not to destroy in advance all 
hope of the prosperity of our descendants. 

"It is evident the abundant natural resources on which the welfare 
of the nation rests are becoming depleted, and, in not a few cases, are 
already exhausted. This is true of all portions of the United States ; it 
is especially true of the longer settled communities of the East. 

"Facts, which I cannot gainsay, force me to believe that the con- 
servation of our natural resources is the most weighty question now before 
the people of the United States. If this is so the proposed conference, 
which is the first of its kind, will be among the most important gatherings 
in our history in its effect upon the welfare oi all our people." 

The Governors of the States and Territories at the White 
House assembled, after having discussed the conservation of 
the country's natural resources for three days, united in the 
adoption of the following "Declaration of Principles :" 

"We, the Governors of the States and Territories of the 
United States of America, in conference assembled, do hereby 
declare the conviction that the great prosperity of our country 

402 



TEE CONSERVAT/Oy />()Lf('Y. 403 

rests upon the abundant resources of the hind chosen by our 
forefathers for their homes, and where they laid the foundation 
of this great nation. 

"We look upon these resources as a heritage to be made use 
of in establishing and promoting the comfort, prosperity, and 
happiness of the American people, but not to be wasted, de- 
teriorated, or needlessly destroyed. 

"We agree that our country's future is involved in this ; 
that the great natural resources supply the material basis upon 
which our civilization must continue to depend, and upon which 
the perpetuity of the nation itseli rests. 

"We agree, in the light of the facts brought to our knowledge 
and from information received from sources which we cannot 
doubt, that this material basis is threatened with exhaustion. 
Even as each succeeding generation from the birth of the nation 
has performed its part in promoting the progress and develop- 
ment of the Republic, so do we in this generation recognize 
it as a high duty to perform our part; and this duty in large 
degree lies in the adoption of measures for the conservation of 
the natural wealth of the country. 

"We declare our firm conviction that this conservation of 
our natural resources is a subject of transcendent importance 
which should engage unremittingly the attention of the Nation, 
the States, and the people in earnest cooperation. These natural 
resources include the land on which we live and which yields 
our food; the living waters which fertilize the soil, supply 
power, and form great avenues of commerce ; the forests which 
yield the material for our -homes, prevent erosion of the soil, 
and conserve the navigation and other uses of the streams ; 
and the minerals which form the basis of our industrial life, 
and supply us with heat, light, and power. 

"We agree that the land should be so used that erosion and 
soil-wash shall cease : and that there should be reclamation of 
arid and semi-arid regions by means of irrigation, and of swamp 
and overflowed regions by means of drainage ; that the waters 
should be so conserved aud used as to promote navigation, to 
enable the arid regions to be reclaimed by irrigation, and to 
develop power in the interests of the people; that the forests 
which regulate our rivers, support our industries, and promote 
the fertility and productiveness of the soil should be preserved 
and perpetuated; that the minerals found so abundant beneath 
the surface should be so used as to prolong their utility; that the 
beauty, health fulness, and habit-ability of our country should be 
preserved and increased ; that sources of national wealth exist for 
the benefit of the people, and that monopoly thereof should not 
be tolerated. 

"We commend the wise forethought of the President in sound- 
ing the note of warning as to the waste and exhaustion of 
the natural resources of the country, and signify our high ap- 
preciation of his action in calling this conference to consider 
the same and to seek remedies therefor through cooperation 
of the Xation and the States. 

"We agree thai this cooperation should find expression in 
suitable notion by the Congress within the limits of and co- 
extensive with the national jurisdiction of the subject, and. 
complementary thereto, by the legislatures of the several States 
within the limits of and co-extensive with their jurisdiction. 

"We declare the conviction that in 1 he use of the national 
resources our independent States are interdependent and bound 
together by ties of mutual benefits, responsibilities, and duties. 

"We agree in the wisdom of future conferences between 
the President, Members of Congress, .and the (iovcrnors of State- 
on the conservation of our natural resources with a view of 
continued cooperation and action on the lines suggested; and 
to this end we advise that from time to time, as in his judg- 
ment may seem wise, the President call the Governors of Stabs 
and Members of Congress and others into conference. 

"We agree that further action is advisable to ascertain the 
present condition of our natural resources and to promote the 
conservation of the same: and to thai end we recommend the 
appointment by eneh State of u Commission on the Couserwi- 



404 THE CONSERVATION POLICY. 

tion of Natural Resources, to cooperate with each other and 
with any similar commission of the Federal Government. 

"We urge the continuation and extension of forest policies 
adopted to secure the husbanding- and renewal of our diminish- 
ing- timber supply, the prevention of soil erosion, the protection 
of headwaters and the maintenance of the purity and navig- 
ability of our streams. We recognize that the private owner- 
ship of forest lands entails responsibilities in the interests of 
all the people, and we favor the enactment of laws looking 
to the protection and replacement of privately owned forests. 

"We recognize in our waters a most valuable asset of the 
people of the United States, and we recommend the enactment 
of laws looking to the conservation of water resources for 
irrigation, water supply, power, and navigation, to the end that 
navigable and source streams may be brought under complete 
control and fully utilized for every purpose. We especially 
urge on the Federal Congress the immediate adoption of a wise, 
active, and thorough waterway policy, providing for the prompt 
improvement of 'our streams and the conservation of their wafer- 
sheds required for the uses of commerce and the protection of 
the interests of our people. 

"We recommend the enactment of laws looking to the pre- 
vention of waste in the mining and extraction of coal, oil, gas, 
and other minerals with a view to their wise conservation for 
the use of the people, and to the protection of human life in 
the mines." 

The Forest Policy. 

The Forest policy of the Government is not a party issue, for 
it has had the support of both the Republican and the Democratic 
parties, but it has been developed mainly under Republican 
leadership. President Roosevelt has done more than any other 
President to establish and extend it, through his messages to 
Congress and through executive action in creating National 
Forests (or "reserves"). These Forests, preserved for the use 
of the people as unfailing supports of industry and sources of 
present and future prosperity, will be for all time a national 
monument to his foresight. 

The law authorizing the creation of National Forests was 
passed by a Republican Cong-ress (the Fifty-first) and action 
under that law was begun by a Republican President (Harrison). 
The law authorizing the administration of these Forests along 
the present lines was passed by another Republican Congress 
(the Fifty-fifth). The law transferring the control of the 
Forests from the Department of the Interior to the Department 
of Agriculture was passed by the Republican Fifty-eighth Con- 
gress. The appropriations for the Government's forest work 
have from 1898 to the present time been increased by successive 
Republican Congresses. It may justly be claimed that the Re- 
jmblican party, the party of action, has contrived and put into 
effect this great and now accepted policy, though the Demo- 
rcatic part}', the party of opposition, has never disputed its 
wisdom. 

Under these laws, there have been set aside and placed under 
the administration of the Forest Service over 166,000,000 acres 
of the public domain. This land is kept in public ownership for 
the public benefit. The National Forests embrace the more 
mountainous parts of the West. They maintain the flow of 
streams, conserving water supply for irrigation and power, as 
well as maintaining a steady supply of timber for the West. 
They also permit the best use of the forage crop without injury 
to other interests. They do not close the land to prospecting 
and mining development, nor to agriculture where the land is 
more valuable for agriculture than for forest growth, but they 
protect the general welfare by preventing the evils which follow 
forest destruction. They are administered by the Forest Service, 
which opens them to every use consistent with the permanent 
good of the West. Mature timber is sold, or is given away to 
settlers and communities for whom it would be a hardship to 
buy,, under regulations which insure the perpetuation of the for- 
ests through new growth. Each National Forest is in charge of 
a Supervisor, who is a local agent to conduct business with forest 



THE CONSERVA TION POLICY. 405 

users and to look after the protection of the forest- Under hirq 
are forest rangers and guards. These local pincers an- Western 
men, in touch with local conditions, but controlled by the For: 
ester, who administers the policy embodied in existing law by the 
Acts of Congress. ( 

The fundamental principle of this policy is development. Be- 
fore the administration of these Forests was provided for their 
resources were closed against the public. Now they are for all 
the use that can be got out of them — the more the better so 
long as it is real use, not spendthrift waste. They are for all 
kinds of use, not for one kind merely; for the benefit of the 
p\iblie, not for the personal benefit of the first man who might 
be able to get hold of them, regardless of the injury he might 
do the public. 

Development of these Forests is taking place through heavy 
expenditures by the Government, but these expenditures are 
wise because they will greatly increase the usefulness of the 
Forests. In the last two years Congress has appropriated $1,100,- 
000 for such permanent improvements as roads, bridges, trails, 
telephone lines, fire-fighting equipment, and rangers' quarters. 
These are investments of capital for the public benefit. Set- 
tlers, stockmen, miners, lumbermen, all who use the Forests, 
will profit by them. They will ajso aid in the protection of the 
Forests. To promote use the Forest must be opened up. All 
that they have in them must be made accessible. 

This development of the Forests is for the sake of the develop- 
ment and permanent welfare of the country, not for the sake of 
the Government as their owner. The Government is not in the 
position of a landlord. If private interests owned and developed 
them it would be for the sake of the return they could be made 
to yield in money profits. The Government is developing them 
for the sake of the return they can be made to yield in sustained 
prosperity. The standing timber is cut as it is needed by the 
people without decreasing the flow of water — also needed by the 
people — without causing rivers and harbors to fill up with mud as 
they are all the time filling up in the East, and without loss of 
the power of the land to grow more forests for future use. The 
preservation and fullest development of the water of the United 
States, for use in irrigation, as a means of transportation, and 
as a source of power, is vital to our future welfare. 

Forest preservation concerns every great 'Western interest. 
The interests of the farmer, the stockman, the miner, the lumber- 
man, the merchant, and the transportation company, with that 
of the labor which they employ, demand and will demand con- 
tinued supplies of water or wood from the National Forests. It 
is true that what is sometimes called development could be 
brought about faster by giving these Forests away. If Con- 
gress should open the National Forests to homestead entry 
without restrictions, some of the States with large National 
Forests in them would develop very rapidly — for a time. The 
National Forests are now open to homestead entry wherever 
the land is chiefly valuable for agriculture. Some of the "home- 
steads" applied for have from $10,000 to $15,000 worth of timber 
on them. If all timberland were open to entry, every man who 
will stop to think twice knows what would be the result. There 
would be a big boom while the timber lasted, followed by a col- 
lapse. It would be good for the people who won Id pocket the 
proceeds and move a^r.y, but bad for the country. It would be 
good for the lumber business while the forests were being cut. 
but the death of the lumber business when they were gone. It 
would for a few years make plenty of work, put money in circula- 
tion, and stimulate trade, but it would in the long run mean the 
decline and ruin of many communities and the impoverishment 
, of the State. 

f But it may be asked: If the Forest policy is to develop the 

Forests for the benefit of the people, not for the benefit of the 
Government as landlord, why does it lay a tax on those who use 
them? The Government no more lays a tax on users of the For- 
ests when it charges them for value received than it lays a tax 
on other citizens when it 'receives money for po tags stamps sold 
or for land taken up. In the las! ten years it has spent, to de- 
velop and protect tin Forests for the benefit of the people, who 



406 



THE CONSERVATION POLICY. 



own them, and to carry ou the business incidental to their use, 
about $7,000,000. It has received from them in these ten years 
about $4,600,000. The receipts from the Forests are now in- 
creasing- rapidly, but so are the expenditures necessary to develop 
their usefulness. The cost of keeping them from burning- up, 
of seeing to it that they are so used that the rights of everybody 
are protected, of seeing that the Forests are made to yield right 
along, year after year, as. much wood, as much water, ..and as 
much forage as possible for the support of the Western people 
and their industries, added to tlie cost of permanent improve- 
ments, is bound to be heavy. Therefore the consumers of the 
wood and forage which the forests grow, and those who sell for 
their own profits the power which streams within the Forests 
supply, are called on to make a reasonable contribution toward 
the maintenance and development of these sources of their in- 
dividual gain. No other arrangement would be either fair or 
possible. Congress could not .justly take from the National 
treasury the great sums which must be spent yearly upon these 
Forests while making a free, gift to a comparatively tew indi- 
viduals of wood, forage, and land for power development, that 
ihey may enrich themselves at public expense. The States in 
which the National Forests lie are still debtors to the Nation for 
expenditures on their behalf, and will probably remain so for a 
good while to come. 

Though the Government has steadily increased the expendi- 
tures for carrying out its forest policy, the net cost to the peo- 
ple for this work was less in the fiscal year 1907 than in any 
previous year since 1899, the very first year in which anything 
at all was spent on the reserves. Yet in 1899 there were only 
46.000.000 acres of National Forests, while in 1907 there- were 
150,000,000 acres. The following statement shows what all the 
forest work of the Government has cost each fiscal year, begin- 
ning with 1899, what the forests have yielded to the Government, 
and what the total area of the National Forests has been at the 
end of each year: 



Statement of expenditures on account of Forestry and receipts 
from National Forests. 

[Expenditures for 1908 based on allotments; receipts estimated.] 



Fiscal year. 



1S99_ 
WOO. 
1901. 

1302: 

1903_ 
1901- 
1905- 
l&OS 
1907. 



Ap propria tlons 

(include* amounts ex- 
pended from receipts fund 
t9JU T 1908i, 



Division of 

Forestry, 

Bureau of 

Forestry 

( Korest 

Service), 

Department 

of 
Agriculture. 



$28,520.00 

■i 8, 520.00 

88,520.00 

1*5, HO. (X) 

291,860.00 

3 59. 00 J. 00 

aG32,232.36 

1,190, 419. 78 

1,790,678.79 



General 

Laud Office, 

Department 

of the 

Interior. 



$175,000.00 
210,000.00 
325,000.00 
300,000.00 
30 t, 135. 00 
375,000.00 

a217,907.64 



Receipts 

f; om sale of 

timber, 

grazing, 

etc. 



$7,531.83 
36,751.02 
29,250.88 
25, 131.87 
45,838.08 
58, -138. 19 
73,276.15 
767,219.96 
1,571,059.44 



Total area 

of 
National 
Forests. 



46,021,889 
Id, 772, 129 
46,410,209 
60,175,765 
62,351,965 
62,703,494 
85,627,472 
106,999,423 
150,831,665 



1, 190 ^ 



uration of National Forests transferred to Forest Serviee, February 



The Forest policy of the Government is not confined to the 
care and development of the forests which th'e National Gov- 
ernment owns and holds as trustee for the people. It includes 
also the effort to bring about the best use of all timber lands and 
all forest products in the United States, in the interest of the 
general welfare, which is so clearly dependent on continuing sup- 
plies of wood and water. The Forest Service studies to find out 
both how to make the best use of whaf we now have on hand 
and how to get more as cheaply, abundantly, and rapidly as pos- 
sible. 



THE CONSERVATION POLICY. 407 

If the cost of these studies and of the educational work car- 
ried on by the Service were deducted from the total exp< ndi- 
tures for the fiscal year 190T, the remainder would be Less than 
the income to the Government from the Xntioi.nl Forests. In 
other words, these Forests in that year carried themselves. Be- 
cause of their growing- economic importance, Congress author- 
ized the policy of making- expenditures to develop their im- 
portance still further, so that now the Government is again 
spending more money on the National Forests than it is re- 
ceiving from them. In so doing- it is simply investing the money 
for the present and future benefit of the people, and protecting 
a great public property from burning up. 

In holding and developing these great resources, conserving 
timber and water, regulating grazing, and controlling those who 
use the Forests for the development of power, the Government is 
fundamentally helping the home builder. At every point it is 
working to increase She number of those who own their own 
homes, the typical Ajnerican as contrasted with the typical 
European, who i« a tenant paying tribute to a landlord/ The 
National Forest poMcy makes oppressive monopoly of the 
resources of the YYe«t impossible. To the extent that the ordi- 
nary citizen has to turn to one man or one set of men for any- 
thing which he can not do without and which he can not get 
elsewhere — whether it is land, or water, or coal, or means of 
fcra asportation, or opportunity to labor, or permission 1 en- 
gage in business — just to that extant he is in the grip of a mo- 
nopoly. Just to the extent that this monopoly seeks to take ad- 
vantage of his necessity is the monopoly oppressive. The only 
trustworthy guaranty that the ordinary citizen can have that 
a monopoly will not be used to oppress him is Government con- 
trol of it. For the Government of this country is itself con- 
trolled by the citizens of the country. 

Government control of the resources of the Forests prevents 
the control of those resources by private monopolies. These 
are things which some one must own. Is it better for the ordi- 
nary citizen that this some one should be the nation, or private 
individuals, or corporations? Is it better for him to buy timber 
from an agent of the Government, who holds his place as a. 
servant of the public, or from the local representative of a tim- 
ber monopoly which cares nothing whatever about the public? 
Is it better that use of the range in National Forests should be 
allotted on the basis of past use and residence, or on the basis 
of the highest price? Is it better that the development of hy- 
draulic power— a matter capable of complete monopoly in the 
West — should fall absolutely into the hands of corporations free 
to collect from the public whatever they choose to ask. with no 
i return to the public for the use of its own resources, or, that the 
Government should control the monopolists in the interest of 
1 equitable exercise of their power over the industrial life of the 
communities dependent on them? 

Yet with all this, if the effect of Government control were t<> 
prevent the everyday citizen from making a home for hjmself, 
i there would be good ground for criticism. But just the cev< rse 
j is true. The number of permanent homes which can be main- 
1 tained in the West is. through control of the Forests by the 
j Government, greatly increased. For the permanent means of 
livelihood are increased. 



American wa are- worker* vnrk With their heads hh «i 
their hnndN. Moreover. they «nk«' n keen pride. In vrhai th.-y 
are floinft; so thnt, Imleperdent of <Tio rcnnnl, they Hinh to 
turn ont a perfect job. Thie In the urent secret oi our suc- 
cess in competition with the labor of foreign countries.— 
President Roosevelt, in message to ConRreN». l>«»c. 8, 1901. 

The administration of exact Justice hy courts wltho.nl 
fear or favor, unmoved by the Influence of rlie \mmiIHij <» 
by the threats of the demauroyruc. la the blithest Ideal thnt 
a government of the people eau strive for, uml n n > Btesnfl 
by which a suitor, however u u -o ;>n lu r or pour, la deprived 
of enjoying- this is to be condemned, it Is Important, ii<> i 
ever, that appeals to judicial remedies should be limited in 

such a way thnt parties will U*e them morel) to d 

and so c!o«r cftlclent and just executive or letflalatlve ua 
—Hon. Win. 1.1. Taft. at Columbus. Ohio. 



THE CIVIL SERVICE. 



The chief criticisms of the Civil Service of the United States 
indulged in by the opponents of the Republican party are based 
either upon a total misapprehension or a willful misstatement of 
facts. 

The Civil Service law was enacted in 1893 for the purpose of 
stopping the flagrant abuses which had developed under the old 
patronage system of ■ appointments. Under that system the gov- 
ernment service in the Departments at Washington had become 
inefficient and extravagant. Public office was considered a per- 
quisite of the party in power, not a public trust. 

It was to remedy such evils that the Civil Service law was en- 
acted, and during the twenty-five years of its enforcement there 
has been developed a high order of industry, integrity, and ef- 
ficiency in the public service. This development has, of course, 
not been free from difficulties. Mistakes have been made, but 
year by year the merit system has been improved and extended 
until now the competitive classified service covers about 197,000 
Federal officials and is recognized as necessary for good ad- 
ministration. 

The conclusive answers to the criticisms are the following 
plain statements of existing conditions and the course of the 
llepublican party during the twelve years in which it has had 
control of the administration : 

First. — Entrance to the Federal classified serrice is. not de- 
pendent upon personal or political influence ; hence the service 
is now composed of self-respecting, independent men and women 
who appreciate that advancement will depend upon individual 
industry and ability. They do not constitute a body of per- 
manent officeholders who are protected from removal even though 
inefficient and incapacitated, as charged. The power of removal 
is absolute in the head of every Department. The only limita- 
tions upon causes of removal are that employees must be treated 
with justice, that like penalties must be imposed for like of- 
fenses, and that no person shall be removed from a competitive 
position except for such cause as will promote the efficiency of 
the service. The only limitation involved in the procedure pre- 
scribed by the Civil Service rules for removal is that the cause 
of removal shall be stated in writing and filed, and when mis- 
conduct is committed in the view and presence of the- President 
or head of an Executive Department removal may be made sum- 
marily and not even a statement of reasons is required to be 
filed. No notice is required to the employee ; no trial and no 
opportunity for a hearing need be given him under the rules. 
The only limitation is, as stated, that the cause of removal must 
be one which will* promote the efficiency of the service; that is, 
must be, for instance, for misconduct or negligence or laziness, 
or some such cause ; and that one employee shall not be punished 
in a different manner from what another is punished. 

The Civil Service Commission strictly enforces the prohibition 
against making removals for political reasons ; but its authority 
Vs limited to the enforcement of that prohibition. 

The merit system does not result in an undue permanency of 
tenure. 48.2 per cent, of the employees in the classified service 
of the country have served less than five years, and 72.5 per 
cent, have 'served less than ten years. In the District of Colum- 
bia naturally the service is more stable, and in the departments 
at Washington 30.8 per cent, have served less than five years and 
56.1 per cent less than ten years. The appointments made as a 
result of the examinations in the entire service are at the rate 
of 3,600 per month ; about 22 per cent, of the entire service and 
about 15 per cent, of the departmental service in Washington 

408 



TEE CIVIL SERVICE. 409 

changes each year. The inefficient employee gives wajr to the 
efficient, or the efficient employee finds private work more profit- 
able or more congenial. 

The charge that the service is filled with superannuated 
clerks is unfounded. 60.7 per cent, of the employees are less 
than forty years old, and 91 per cent, less than sixty years old. 
In Washington less than 53.1 per cent, are less than forty, and 
87 per cent, less than sixty years old. 

Second. — It is not claimed that a competitive examination is 
an absolutely correct means of determining the qualifications of 
applicants, but it is the best means yet devised. The Civil Ser- 
vice Commission is constantly changing the character of the 
examinations to meet the special requirements of particular 
places. The experience of twenty-five years has shown definitely 
that the average examination can be passed by any intelligent 
person who has had a common school education, ^and does afford 
a remarkably accurate basis for the determination of the relatire 
ability of applicants. 

As a result of the examination for scientific and technical 
positions, there have been built up various corps of thoroughly 
trained men who have placed the scientific work of this Govern'-' 
ment in the forefront among the nations of the world. This 
has been particularly true, and the results obtained have been 
of great practical value, in the Departments of the Interior, 
Agriculture, and Commerce and Labor. 

Third. — It is a mistake to suppose that the Civil Service Com- 
mission exists simply for the purpose of enforcing- the law and 
rules. Its purpose is to provide the most efficient eligibles possible 
for everj- branch of the service. It looks to the good of the ser- 
vice, not to the mere enforcement of a rule. It is the barrier 
against the spoils system, but it does not protect the inefficient or 
dishonest employee. 

The ideal Civil Service law should close the door to entrance 
into the public service except through a method which can be 
followed by any qualified person without political influence or 
favor, but leaves to the executive authorities the power to re- 
move for any cause, other than political or religious. It is to- 
ward this ideal that the present Administration is working. 

The business of the Government has grown in proportions not 
appreciated by the people at large. The executive departments 
are made responsible forHhe expenditure of about $600,080,000 
annually. Such expenditures can be wisely and honestly made 
only by exercising the highest degree of business ability and 
selecting efficient, capable employees who will make good service 
to the Government their ambition. The Republican parly lias 
proved that under its administration the businesg of government 
is so conducted. President Roosevelt, the party's present repre- 
sentative, has appointed men of recognized ability and judgment 
to carry on executive work. He has made no promises impos- 
sible of fulfillment. Hy precept and example he hns inspired 
public officers to a higher sense of duty. In this administration 
neither personal nor political influence has availed to s;iw the 
corrupt official from punishment. American citizens should re- 
memher and take to heart. these words of the President : 

"The most successful government* ire those in which tin average 
public servant possesses that variant of loyalty which we call patriotism. 
together with Common sense and h-mesty. We ran a- little afford to 
tolerate a dishonest man in the public service as a coward in the army. 
The murderer takes a single life: thf coffuptlonisl in public life, whether 
he be bribe giver or bribe taker, «trikos at the heart of the conom mwealth. 
In every public service, as in every army, there will be wrongdoers, there 
will occur misdeeds. This can not be avoided ; hut vigilant watch rfti'Sl be 
kept, and as soon as discovered th* Wrongdoing must be - 1 tbo 

wrongdoers punished." 

Mr. Taft has, during his entire political career, been ;i steady 
and efficient supporter of the improvement of the Civil 3 
He introduced the tnm-it system Into the government of the 
IMiilippines ; he has had charge of one of tin great Departu 
of the Government under the administration of (.'resident I: 
velt. and whatever cominend.it io M is due to l*resident 
in his course in the handling and the improvement of adminis- 
tration is shared by the present candidate oi the party, who Una 
loyally and consistently supported the reforms whieh I'lvsidci; t 
Iloosevelt has introduced. 



410 THE CIVIL SERVICE. 

British Manufacturers Advocate Tariff Reform. 

London, April 21, 1908. 

The progress of tariff reform in England is well illustrated by 
the action of the Associated Chambers of "Commerce at their 
recent meeting in London. This is the most important com- 
mercial body in Britain, and it represents the business life of 
the country. The question before it for decision was "That this 
Association, while approving of the principle of free excb xnge, 
recognizes the grave danger to which our industrial population 
is exposed by the action of scientifically imposed foreign tari ?s, 
and is of opinion that steps should be taken to mitigate the evil 
by the reform of our tariff." 

In a vote this resolution was adopted by 40 to 30, there being- 
31 neutral. As showing the advance of the movement a similar 
motion was rejected by 69 to 27 when made three years ago. 



We are not a nation of classes, but of sturdy, free, inde- 
pendent and honorable people, despising- the dcmfigoKue aiwl 
never capitulating- to dishonor.— McKiiiley's letter of accept- 
ance, l>;i)6. 

The present phenomenal prosperity has been won under 
a tariff made in accordance with certain fixed principles, the 
most important of winch is an avowed determination to pro- 
ject the interests of the American producer, business man, 
wage-worker, and farmer alike,— I*i*esident Roosevelt. 

We have had great problems before and have solved 
them rightly — that is the American way of solving problem*. 
We must approach these new ones in the same spirit with 
which we approached and successfully solved those which 
have gone into history.-— Hon. George B. Cortelyou, at Lr- 
bana, Illinois, June 7, !OOJ>. 

They tell us that a protective tariff -was only designed 
for infant industries, that -we have outgrown that infancy 
and are no longer in need of the duties that enabled us 
to get them started. We have grown, It is true. Our great 
industrial concerns are monsters now, but let me tell you, 
as the boy said who waited till he had grown ap before 
tackling a youthful opponent, the other fellow has grown 
up too.— Hon. James S. Sherman. 

In the great battle of 1890 the Republican party uirain 
stood for the maintenance of the integrity of the nation. 
The tight was against odds produced by a great industrial 
depression, and against the most sophistical arguments. The 
Republican party maintained a ccinjaaigu of education 
iuiioiiff the wasre-earners and the farmers, which ultimately 
led to the complete defeat of this second financial heresy 
which has threatened the integrity of our business structure. 
—Hon. Wm. H. Taft, at Kansas City, Mo. 

Under the system of protection every hour of honest toil 
purchases more of material comfort for the toiler than is at- 
tainable under any other system, the degree of such advan- 
tage being contingent upon the completeness and accuracy 
of the application of the protective system. This advantage 
comes directly or indireetly to all classes of toilers, be they 
weavers, spinners, carpenters, painters, machinists, farmers, 
doctors, editors, or teachers. — Hon. H. B. Metcaif, Pftwtncket, 
R. I., in the American Economist. 

Mr. Bryan's whole system of remedies for the evils that 
hoth Mr. Roosevelt and he and many others recognize, is 
based on his distrust of the honesty, courage and impar- 
tiality of the individual as an agent on beha'f of the people 
to carry on any part of government and rests on the propo- 
sition that our present system of representative govern- 
ment is a failure. He would have government ownership 
of railways because he does not believe it is possib'e to 
secure an iu+erstate commerce commission that the "money 
power" cannot anH will not ultimately own. He would have 
the initiative and referendum beeanse he distrusts repre- 
sentative government and has no confidence in the abliity 
of the people to fir 'I men who will conscientiously, and 
free from the influent* of the "money power," -represent them 
in preparing and voting legislation. He -would take away 
from courts, because he distrusts the ability of judges to 
resist the malign influence of the "money power," the power 
to enforce their own orders until a jury is called to te'l 
the court whether the order has been disobeyed, and thus, 
In practice, though not In theory, the Jury would come to 
pass on the correctness and justice of the court's Order. 
—Hon. Wm. H. Taft, at Columbus, Ohio. 



THE NON-CONTIGUOUS TERRITORY 
OF THE UNITED STATES. 



The last decade has? developed a new quality in the American, 
the power to successfully govern noncontiguous territory occu- 
pied by people of nationalities, customs, and civilization differing 
widely from our own. aiid living- under climatic and other con- 
ditions also widely different from those to which we have been 
Accustomed. This new work has required the American soldier, 
sailor, and citizen to study the characteristics of and devise 
means of government for the millions in the Philippine Islands. 
and with th^m large numbers of Chinese and not a few other 
Orientals: tBe thensands of Chinese and Japanese of the Hawaiian 
Islands, the mixed Spanish and native population of Porto Rico, 
Cuba, and Panama; and, passing from the tropics t<> the Arctic, 
the Eskimo and Indian of Alaska. In all of these cases the ad- 
vent of American influence has brought civilization, education, 
improvement of public health, better transportation facilities, 
diversification of industries, increased commerce, increased earn- 
ings, and with all of these a growing share in domestic govern- 
ment, and produced prosperity, peace and contentment. The 
establishment of peace has been in every case the tirst purpose. 
and following this the introduction of educational facilities, the 
development of transportation, and with this the development 
of commerce. Sehoolhouses, roads, railroads, canals have fol- 
lowed the American flag, and the American soldier, sailor, or 
civil administrator in all of these various and widely sepa- 
rated sections of the world, and these in turn have been followed 
by closer 'relations between the United States and the 12 million 
people Occupying these scattered sections, now known aa The non- 
contiguous territories of the United States, omitting from this 
category, of course, Cuba, which is but temporarily under Ameri- 
can control, and will within a few months be again established 
as an independent American Republic. In chapters which follow 
the conditions now prevailing in these various sections of the 
world, and commonly designated as the noncontiguous territories 
of the United States are set forth in detail. It is not improper 
to say, before entering upon a discussion of these conditions, 
that the trade of the United States with this noncontiguous 
area — the Philippines, Hawaii, Alaska. Porto Pico, and the Pan- 
ama Canal strip — has grown from 35 million dollars in 1897 to 
160 millions in 1907. The imports from these various territories 
have grown from 24 millions in 1897 to 77 millions in 1007. and 
the exports to them from 11 millions in 1S97 to 83 millions in 
1907. In this important work no citizen or official 6t the United 
States has performed a greater or more varied and difficult work 
than has Mr. Taft, in his services in the Philippines* in Cuba, 
and in Panama. 



THE PHILIPPINE ISI,A\I>V 

The assumption of sovereignty over the Philippine islands 
on the part of the United States was not a matd r of voluntary 
action, but was developed suddenly and 
result of a victorious war. The burden of its unavoidable 
ligations had to be promptly met! A governnienl hud to be 
built from the ground up a governmenl involving all the pi 
of law and conditions of :i people numerically greater than 
the si -c of the United States at the time the Federal Consti- 
tution was adopted, yel on recount of tap oonditio 
which they had so long lived thev were r->r the time 
ieasl incapable of self-government. They were 
a territory whose extent north and south, measured bj the time 
required to travel, was equal to the grea< coasl line <>f the 
United States between Eastport, Maine, and the Florid - 

411 



412 NON-CONTIGUOUS TEIVY—THE PHILIPPINES. 

or, more plainly stated, whose territorial length from Bashi 
Channel to Sibuto Island is not less than the length of a ship- 
pathway between Canada and the Gulf of Mexico — a people with 
no language of their own, divided into about twenty separate 
and distinct classes or clans, each with a dialect or Spanish 
patois not always understood beyond the immediate locality in 
which it was spoken — a people such as no other nation on earth 
before had ever been called upon to tranquillize, control and 
govern, and, in a measure, to civilize as well as to train and edu- 
cate in the duties of modern citizenship. Such a people as they, 
in a tropical country thousands of miles from our own shores, on 
the opposite side of the globe, in fact, fell suddenly under the 
care and protection of the United States, a country without ex- 
perience in governing or developing a tropical or oriental people. 

The First Steps In Government of the Island. 

Necessarily, of course, the first steps taken with respect 
to the establishment of American dominion over the Philip- 
pine Islands were war measures. Spain had suddenly lost 
both prestige and dominion over the Philippines, and the Ameri- 
can Army as an unavoidable act of war naturally had to exer- 
cise its functions in martial government. But from the very 
start care was exercised to do away as much and as speedily 
as possible with the austerity and rigor of martial law and 
almost from the beginning the military government was dual- 
ized by delegating certain powers to a Civil Commission, which 
at first shared authority with the military government and 
finally supplanted it. 

Civil government in the Philippine Islands, however, as dis- 
tinguished from military administration, dated from the ap- 
pointment in March, 1900, by President McKinley, of what is 
now generally known as the "Taft Philippines Commission." In 
creating this commission and authorizing it to assume and 
discharge the functions of government, the President still ex- 
ercised the war power of the nation, for the commission thus 
created was an instrumentality for the exercise of authority 
by the President, as Commander-in-Chief of the Army and 
Navy of the United States, to administer th« affairs of civil 
government in territories subject to military occupation. 
The Commission thus established, however anomalous it may 
have seemed, was a civic agency for the exercise of the powers 
of military government, and, being without precedent, it may 
be regarded now as one of those beneficent, wise, and valued 
achievements in our national history which seems to have been 
inspired by a power beyond the ordinary human comprehen- 
sion. 

It is now more than seven years since President McKinley 
committed the government of the Philippine Islands to the con- 
trol of the Philippine Commission with William H. Taft at 
its head, subject to the supervision of the Secretary of War ; 
and meanwhile, during all those years of gradual betterment 
of the conditions prevailing on these Islands, there have been 
no discoveries of any radical error in the original form of 
government or anything to lessen the faith of the Filipino or 
American people in the promises of the United States Govern- 
ment. On the contrary there were so few points to be changed 
when the matter of the Philippine Government came before 
Congress for revision and enactment in detail that Congress, 
after full deliberation and careful consideration, continued the 
whole question of the Philippine Government and its administra- 
tion in the hands of the Chief Executive of the United States, 
whose original instructions arid decrees as well as other amenda- 
tory and incidental acts found necessary subsequently were not 
only approved in the main but continued in force with all the au- 
thority which combined governmental action could give them. 

Purpose of the Taft Commission. 

The general purpose of the Taft Commission as announced 
by President McKinley was "to continue and perfect the work 
of organizing and establishing civil government already com- 
menced by the military authorities" in the Philippines, subject 
in all respects to any laws which Congress might thereafter 



yOX-COXTIGUOUS TEKY—THE PHILIPPINES. 413 

enact. And us a fundamental step in giving civil government 

•eople of the Philippines, it was determined that there 

id be a separation of the executive, the legislative, and the 

ml branches, and that the powers of these several branches 

ild be exercised by different persons. Accordingly. th< 
islative powers were conferred upon the Commission, the judicial 
powers were to be exercised by the courts, which themselves we're 
to be established through legislative action of the Cbmmi 
and the authority to exercise the executive powers was con- 
tinued in the commander of the military forces of the I 
States, where in the beginning it had been placed in main- 
taining the occupancy of the Islands. 

The year following this arrangement of government;! I power, 
in June, 1901. the President of the United Si ites appoint.-.! Horf. 
William H. Taft Civil Governor of the Philippine Islands, and 
transferred from the Military Governor to him as Presidenl of 
the Philippine Commission the authority to exercise the powers 
of the executive branch of the government in all the pacified 
provinces of the Islands, but continuing the authority of the 
Military Governor to exercise authority in those districts in 
which the insurrection continued" to exist. 

On the 1st of September, 1901, a further step toward civil 
executive organization was made by the establishment of sep- 
arate executive departments to which members of the Commis- 
sion were assigned. 

The administrative affairs of the government through these 
newly instituted executive departments were apportioned among 
several newly organized Bureaus or officers in each Department, 
embracing all administrative duties pertaining to the various 
affairs of the Islands, such for example as Health, Quarantine 
and Marine Hospital Service, Forestry, Mining. Agriculture, 
Fisheries, Weather, Ethnology, Public Lands, Patents and Copy- 
rights, Post Offices, Telegraphs, Coast and Geodetic Surveys. Pub- 
lie Works and Public Buildings, Insular Constabulary. Prisons, 
Corporations, Immigration, Internal Revenue. Ranks and Bank- 
ing, Coinage and Currency, Justice, Public Instruction. Public 
Charities, Public Libraries. Museums, Public Records, Official 
Statistics, Public Printing, Architecture, etc., including in fact 
every detail of administrative government known in a civilized 
and salf-governing community. 

It was in the same year that the President appointed three 
distinguished Filipinos as additional members of the Commis- 
sion; and on October 29, 1901. in order to relieve somewhat the 
great pressure of official duties devolviTig upon Civil Governor 
Taft. the President created the office of Viee-Governor and ap- 
pointed Hon. Luke E. Wright to that position. Mr. Wright sub- 
sequently became President of the Commission in 1903. suc- 
ceeding Mr. Taft, who had resigned to accept the position of 
Secretary of War. 

Self-Government in Municipalities. 

Pursuant to the instructions of the President of the United 
States, the Commission by proper legislation made provisions 
for municipal government, to be established throughout the 
Islands as quickly as conditions permitted. They also p 
a general act for.the organization of provincial governments in 
the Philippine Islands. A judicial system was created under 
which the several newly established courts assumed the exercise 
of judicial power-, and the insular constabulary and municipal 
police were created ami installed. A system of civil service \*:i> 
provided for and put into operation by dee enactments, bo 
with a system of account and audit, which were ad ipted and 
rigorously enforced. A syst-m of education, too. was installed 
and forest rv laws providing for the preservation and utili 
of the public forests wen- adopted and enforced. In addition to 
i all these careful provisions of good government, a wis' and ex- 
tensive system of public improvements and repairs was adopted, 
and adequate means of securing revenue by the levv of duties 
and taxes were duly devised and put in force. 

careful, thorough and complete were the various features 
of government formulated by the Philippine Commissioners, 
v, iiii due regard to the principles of Liberty, Equality and 



414 NON-CONTIGUOUS TER'Y—THE PHILIPPINES. 

Justice prevailing in the United States, that Congress in 1902, 
after careful investigation of all that had been done fer the 
government of the Philippine Islands, placed the seal of offi- 
cial legislative approval upon the governmental organization 
in those Island:,, ratifying, approving and confirming each and 
every one of the acts theretofore done and performed in con- 
nection therewith, and besides conferred upon the said Philip- 
pine Government additional authority and discretionary rights 
which not even the President of the United States had previously, 
had authority to bestow. 

Pursuant to this legislation of the Fifty-seventh Congress. 
there was soon afterwards established in the Philippines and 
extended throughout the civilized portions of those Islands, a 
civil government which in certain respects is more extensive 
in its local and independent character than that which exists 
in airy of the States or Territories of this Union. Indeed, not 
being limited by the Constitution in its legislation on this 
subject, as in matters relating to the United States, Congress. 
was able to delegate to local government of the Philippines 
certain valuable powers which cannot under our Federal Con- 
stitution be givru to the States of the Union. Jt might there- 
fore be asserted that no integral or segregated portion of the 
territory of the United States subject to Federal sovereignty 
is to-day exercising by itself and for itself so many of the powers 
of governmental sovereignty as are exercised in the Philippine 
Archipelago. 

Temporarily Withheld Privilege*. 

While all this is so, however, there are two rights or privi- 
leges guaranteed to the citizens of the United States by the 
Federal Constitution which are not yet granted to the Filipinos, 
namely, the right to bear arms and to trial by jury. On this 
point Secretary Tai't, in a report to the President, said: 

"The right to bear arms is one that cannot safely yet be extended 
to the people of the Philippines, because there are among those people 
men given to violence, who with the use of arms would at once resort 
to ladronism as a means of livelihood. The temptation would be too 
great and ought not to be encouraged. Nor are the people fit for the 
introduction of a jury system ; not yet has any considerable part of 
the community become sufficiently imbued with the sense of responsibility 
for the government and with its identification with the government. This 
responsibility and identification are necessity before jurors can sit im- 
partially between society and the prisoner at the bar. Without it they 
are certain always to release the prisoner and to sympathize with him 
in the prosecution against him. The fair treatment of the prisoner is 
sufficiently secured in a country never having had a jury trial by th« 
absolute right of appeal from the decision of a single judge to the deeision 
of seven judges, with a writ of error thence to the Supreme Court of the 
United States. It may be that in the future it will seem wise gradually 
to provide for a jury in various classes of cases, but at present it would 
be premature. 

"The civil rights conferred by Mr. McKinley's instructiens were ex- 
pressly confirmed by the organic act of July 1, 1902. It has been the 
p :rpose of the Philippine government to make the extension of these 
rights a real thing and a benefit for the poorer Filipino, and progress 
is being made in this direction. The great obstacle to it arises from the 
ignorance of the people themselves as to what their rights are and 
their lack of knowledge as to how these rights may be asserted. 

"The work of impressing a knowledge of these things upon the 
people goes, however, rapidly on, and with the education in English of 
a new generation and their succession to the electorate, we can be cer- 
tain that the spread of education as to popular right* and the means . 
cf maintaining them will be wider and wider, until we can have a 
whole community who know their rights, and knowing, dare maintain 
them. 

'Charges have been made that the existing Philippine government 
has not properly preserved these guaranties of civil rights. It is true 
that the Commission has, in effect suspended these guaranties in a 
e iidition equivalent to one of . war in some of the provinces, and has 
t<en sustained in so doing by the Supreme Court of the Ifdands and of 
the United States. It is also true that during a condition equivalent 
t • war, the Commission provided that no one should advocate independence, 
even by peaceable means, because agents of insurrection were inciting 
actiial violence under the. guise of such peaceable propaganda. With the 
ci mihg of peace, the statute ceased to have effect. To-day, however, 
the writ of habeas corpus runs without obstruction. The liberty of the 
press and of free speech is real. There i? no censorship of the press 
fend no more limitation upon it* editors than there is in the City of 
Washington. The publication if criminal libel or seditious language cal- 
c iaied and intended to cau.-v public riot and disturbance is punishable 
iq Manila and the Philippine- a-< it is in many of the States of the 
Union. This freedom of discussion and this opportunity to criticise tl!e 
g •vernment, educate the people in a political way and enable them more 
intelligently to exercise their political rights." 



NON-CONTIGUOUS TER'Y—THE PHILIPPINES. 415 

General Policy of the United States Ti>wardn the Philippines. 

In his recent special report to the President on Philippine 
affairs after his visit to the Philippine Islands, in October last, 
Secretary Taft said as follows : 

"The policy of the United States toward the Philippines is, of 
course, ultimately for Congress to determine, and it is dHBeult to 
one Congress could bind another Congress, should the sec nd < 
to change the policy declared by the first. But we may prone 
that after one Congress has announced & policy up-m the fai;."n or' 
a whole people has for some years acted and Counted gbod 
would restrain subsequent Congresses from lightly changing It. V ■ 
years Congress in silence permitted Mr. McKinley and yourself, a;- Com- 
manders-in-Chief of the Army, to adopt and carry out a policy in thv 
Philippines, and then expressly ratified everything which you had don* 
and confirmed and made part of the statute certain instruction which 
Mr. McKinley issued for the guidance of the Philippine Commission in 
making civil government in the Islands. Not only this, but C "turn s-= 
closely followed, in the so-called organic act, your recommends Mon* a* 
to provisions for a future change in the Philippine Government. Th^ 
national policy may, therefore, be found in the course pursued and de- 
clarations made by the Chief Executives in Congressional messages and 
other state papers which have met the approval of Congress. 

"Shortly stated, the nctlenal pclicy is to govern the Philippine 
Islands for the benefit and welfare and uplifting of the people of the 
Islands and gradually to extend to them, as they shall phow themselves 
fit to exercise it. a greater and greater measure of popular self-go-prn- 
ment. One of the corollaries to this proposition is that the United 
States in its government of the Islands will use earery effort to increase 
the capacity of the Filipinos to exercise political power, both by general 
education of the densely ignorant masses and by actual practice, in 
partial self-government, of those whose political capacity is such that 
practice can benefit it without great injury to the efficiency of govern- 
ment. What should be emphasized in the statement of our national policy 
is that we wish to prepare the Filipinos for popular self-government. This 
is plain from Mr. McKinlay's letter of instructions and all of his utter- 
ances. It was not at all within his purpose or that of the Congre .s 
which made his letter part of the law of the land that we were merely 
to await the organization of a Philippine oligarchy or aristocracy com- 
petent to administer government and then turn the Islands over to it. 
On the contrary, it is plain, from all of Mr. McKinley'* utterances and 
your own, in interpretation of our national purpose, that we are the 
trustees and guardians of the whole Filipino people, and peculiarly of the 
ignorant masses, and that our trust is not discharged until those masses 
are given education sufficient to know their civil right- and maintain 
them against a more powerful class and safely to exercise the political 
franchise. This is important, in view of the claim, to which I shall 
hereafter refer, made by certain Filipino advocates of immediate inde- 
pendence under the auspices of the Boston anti-lmperiali ts, that a, satis- 
factory independent Philippine government could be established under a 
governing class of 10 per cent and a serving and obedient class of 90 
per eent. 

"Another logical deduction from the main proposition is that when 
the Filipino people as a whole show themselves reasonably fit to conduct 
a popular self-government maintaining law and order and offering equal 
protection of the laws and civil rights to rich and poor, and desire com- 
plete independence of the United States, they stall be given it. Tht 
standard set, of course, is not that of perfection or such a governmental 
capacity as that of an Anglo-Saxon people, but it certainly ought to be 
one of such popular political capacity that complete independence i:i 
its exercise will result in progress rather than retrogression to chaos or 
tyranny. It should be noted, too, that the tribunal to decide whether 
the proper r political capacity exists to justify independence is Congress 
and not the Philippine electorate., Aspiration for independence may w«. 11 
be one of the elements in the makeup of a people to show their capacity 
for it, but there are other qualifications quite as indispensable. The 
judgment of a people as to their own political capacity is an unerrln? 
guide. 

'The national Philippine policy contemplates a gradual extension 
of popular control, i. e., by steps. This was the plan indicated In Mr. 
McKinley's Instruction. This was the method indicated in your rdfcuu- 
mendation that a popular assembly be made part of the legislature. Thi - 
was evidently the view of Congress in adopting your recommendation, 
for the title 'of the act is 'For the temporary government of the Philip- 
pine Islands' and is significant of a purpose or policy that the govern- 
ment then being established was not in permanent form, but that changt > 
in it from time to time would be necessary.' 

General Review. 

No better review of the governmental policy adhered to in 
the Philippines and the splendid results achieved under it could 
be found than this recent interest ing special report of Hon. 
William 11. Taft, Secretary of War, Blade bo President Roc 

after the former's return from his last \isit to Manila, where in 
October last la* personally as the re present a t i\ e of t be I' 

dent of the United States opened the General Assembly of the 

Philippine Islands. To nttempl either to dissect or to conn 
or in any way to minimi/e that report would be unjust both t 
author and to the important subjects with which it deals, it 



416 NOW -CONTIGUOUS TER'Y—THE PHILIPPINES. 

self full and complete in its satisfying explanations, that report 
need in this connection only be referred to in a general way, 
inasmuch as it is available to all persons who may be interested 
in the Philippine question. Copies can be ; obtained by appli- 
cation to the War Department. 

In this immediate connection, however, reference must be, 
made undoubtedly to at least one feature of that report which 
concerns the crowning act of the United States Government's 
generous and wise policy of help to the Filipino people. 

It will be remembered that in the very beginning when the 
military government was established, care was taken to dualize 
that government by injecting into it the anomalous feature of 
civic authority, which in time was made to grow as the Filipino 
people seemed less to demand the rigors of military control. 
As the people became obedient to the laws of the land 
and showed an inclination to avail themselves of the splendid 
opportunities of peaceful help offered by the United States Gov- 
ernment, the powers of the military were lessened and those of 
the civic government were enlarged. Finally, as we have seen 
before in the course of this cursory account of Philippine 
affairs, in the quickest possible time provision was made for 
municipal and provincial government by the Filipinos them- 
selves, and meanwhile some of the more eminent Filipinos were 
placed upon the judiciary and others made a part of the Philip- 
pine Legislature. In other words, their own selected repre- 
sentatives were placed in control of the government of their 
towns and provinces, their own people were selected to enforce 
the police authority of the Islands, their own comrades were 
placed upon the court benches, and their best-known and most 
distinguished representatives were made members of the highest 
legislative tribunal, and latterly a Congressional delegation has 
been provided for at Washington — all this in fulfillment of the 
pledge given in the beginning by President McKinley and stead- 
fastly and faithfully adhered to by President Roosevelt, his 
Secretary of War, and their duly authorized agents in control. 

But there is one thing more even than all this which the 
Government of the United States could do and which it had 
promised in the beginning that it would do, namely, the estab- 
lishment of the General Assembly of representative Filipinos 
to be selected by the Filipino people themselves whenever, in 
the language of the enacting law, "the existing insurrections in 
the Philippine Islands shall have ceased and a condition of gen- 
eral and complete peace shall have been established therein and 
the fact shall have been certified to the President by the Philip- 
pine Commission." 

To execute this crowning act of good faith it was provided 
that when the above-named condition of "general and complete 
peace" was attained the President upon being satisfied thereof 
should order a census of the Philippine Islands to be taken by 
the Philippine Commission, and that two years after the com- 
pletion and publication of the census, in case such condition of 
general and complete peace with recognition of the authority of 
the United States had meanwhile continued in the said Islands 
not inhabited by Moros and other non-Christian tribes, the Presi- 
dent upon being satisfied thereof was required to direct the 
Philippine Commission to call a general election for the choice 
of delegates to the popular Assembly of the, people of said terri- 
tory in the Philippine Islands, which should be known as the 
Philippine Assembly. It was further provided that after said 
Assembly was convened and organized all the legislative powers 
previously conferred on the Philippine Commission in all that 
part of said Islands not inhabited by Moros or other non- 
Christian tribes should be vested in a Legislature consisting 
of two Houses, the Philippine Commission and the Philippine 
Assembly. Said Assembly it was enacted should consist 01 not 
less than fifty nor more than one hundred members, to be ap- 
portioned by the said Philippine Commission among the prov- 
inces as nearly as practicable according to the population, in- 
suring to each province at least one member. 

Oh September 11, 1902, the Philippine Commission certified 
to the President that the insurrection in the Philippine Islands 
had ceased and a condition of general and complete peace had 



NON-CONTIGUOUS TER'Y—THE PHILIPPINES. 417 

been established there; and a fortnight thereafter the President 
•ordered that the census of the Philippine Islands be taken. Ac- 
cordingly the census was taken at a cost of nearly seven millions 
of dollars, and it was the first census which had ever been taken 
of the Philippine Islands since- the Americaa occupation. 

The rest of this story of fulfillment of good faith on the part 
of the United States relates to facts too recent to require much 
review in this connection. As is well known, the necessary ac- 
tion was taken by the President of the Philippine government 
to insure an election of members of the Philippine Assembly. 
And on the day set for the meeting- of the Assembly, Secretary 
Taft, to whom more than to any other man connected 
with Philippine affairs was due the steady growth and develop- 
ment of the Filipino people, traveled from Washington to 
Manila to be present at and himself open the first session of the 
first General Assembly of the Philippine government. 

The establishment of this legislative Assembly for the Fili- 
pino people was practically the climax of all that had been 
done looking- to their enfranchisement, by allowing them to 
exercise for the first time in their lives the right to vote for 
their municipal, provincial, and legislative representatives in 
governmental affairs. This legislative Assembly was indeed the 
very epitome of generous concessions to the Filipino people ; 
and as will be seen by an examination of Secretary Taft's spe- 
cial report above referred to, the criticism called forth by this 
generous treatment of the Filipino people had spurred lwn on 
to a defense of the system and the denial that the L'nited 
States had gone too fast in the fulfillment of its promises to 
grant self-government to the Filipino people. The Secretary's 
observations on this point are as follows : 

"In recommending to Congress the provision for a national assembly 
contained in the organic act of the Philippine government, Secretary Root 
and the Commission were moved by the hope and belief that the promise 
of the act, cenditioned, as its fulfillment was, on the existence of peace 
in the Islands, would stimulate activity on the part of all Filipinos having 
political ambition to bring about tranquility. In this respect, as already 
pointed out, the result has abundantly vindicated their judgment. They 
were further moved by the conviction that this step toward greater pop- 
ular self-government would strengthen the hands of the Government by 
securing from the people readier acquiescence in and greater obedience 
to measures which their representatives had Joined in passing than when 
they were the decrees of an alien government. They further believed that 
Ky means of the assembly much more exact and practical knowledge of 
the country would be brought to the law-making power than in any other 
way. Fiually, they thought that the inauguration of such an assembly 
would be a most Important step In the main plan or policy of educating 
Filipinos in the science and practice of popular representative govern- 
ment. They were aware of the possible danger that this was a step 
too far in advance. They did not deny that on the part of a number 
elected there would be a strong inclination to obstruct the smooth working 
of existing government on lrnes of political iu>d material progress. They 
anticipated the probability that in the first assembly elected the majority 
would be in favor of immediate independence ; but in spite of all this 
they were clear in their forecast that the responsibilities of power would 
have both a sobering and educational effect that would lead ultimately to 
conservatism of action and to strengthening the exi8ting government." 

In the beginning no man was kept busier than Mr. Taft 
in discussing and explaining the various necessary actions taken 
by the United States for the gradual improvement of the Fili- 
pino people: and now when the policy which he advocated and. 
under the instructions of the President, executed, has developed 
into a magnificent success, fulfilling all the pledges that had 
been in the beginning made concerning if. new criticismB arise — 
new complaints that the government pas gone too far — that the 
United States had done too much for the people of the Island-.; 
and again Mr. Taft. from his intimate knowledge of and prac- 
tical participation in Philippine affairs, is required to make 
explanations to show that the government luis really not prone 
too fast or already yielded too much in the fulfillment of its 
promises. 

Improved Condition* In the Philippine*. 

Much more might be said on this subject, put in view of 
the well-known facts regarding the improved mora), business, 

and sanitary conditions now prevailing in the Philippine Islands 
another brief extract might here be quoted from the above 
referred to recent report of Secretary Taft to the President 



4)8 NON-CONTKWOUS TER'Y—THE PHILIPPINES. 

on the present conditions in the Philippine Islands, wherein 
he said: 

"Peace prevails throughout the Islands today in a greater degree 
than ever in the history of the Islands either under Spanish or American 
rule, and agriculture is nowhere now impeded by the tear on the part 
of the farmer of the incursion of predatory bands. Under the policy already 
stated, inaugurated by the instructions of President McKinley to Secre- 
tary Root, in reference to the establishment of a temporary governmeHt 
in the Philippines, a community consisting of 7,000,000 people, inhabiting 
300 different islands, many of whom were in open rebellion against the 
Government of the ^United States for four years, with all the di turbancoss 
following from robber and predatory bands which broke out from time 
to time, due to local causes, has been brought to a state of profound 
peace and tranquility in- which the people as a whole are loyally sup- 
porting the government in the maintenance of order. This is the hist and 
possibly the most important accomplishment of the United States in. the 
Philippines." 

In conclusion on this point it might be added that six thou- 
sand Filipino teachers who are now teaching- English have 
received their English education from our normal schools *or 
our American teachers. Their number is growing, and a.s de- 
clared by Secretary Taft they represent and are the most val- 
uable educational asset we have acquired in working out our 
school system in the Islands. The Filipino insular teachers 
are drawn from the graduates of normal schools and also from 
the students sent by the Government and at the expense of 
tne Government to the United States to be educated here. 
Forty-six of these students have recently returned from the 
United States and have been appointed as insular teachers at 
salaries ranging- from eight hundred and forty to nine hun- 
dred and sixty pesos per annum, which of course is much 
less than the salaries paid to American teachers, who get about 
twelve hundred dollars per annum. 

The total school enrollment for the past year, inclusive of 
the Moro province, was 479,978. This, however, was in the 
month of March, when the enrollment reached its highest point ; 
but the average enrollment divided by months was -346.240. at 
which sixty-two per cent were boys and thirty-eight per cent 
girls. The average daily attendance was 209.Q0O, or a percent- 
age of about eighty-five — the highest percentage of attendance, 
however, being ninety-four in the City of Manila. 

In this connection it might be well to quote in full a few 
paragraphs from the last report of Secretary Taft on the Philip- 
pines, in which he discusses "education in schools" as fol- 
lows : 

School Education. 

"Reference has already been made to the fact of the very great ig- 
norance and illiteracy that prevail among the Filipino people. It. is nol 
too much to say that knowledge of Spanish is a fairly good indication 
whether an individual can be said to be educated. Statistics show that 
7 per cent of the people of the Islands speak Spanish ; all tbe other* 
speak in the varying dialects, which among the civilized people n'.mber 
some 16. The Philippine people sh'mld be educated sufficiently to have a 
common medium of communication, and every man, woman, and child sbould 
have the benefit of the primary 'education in that common medium. Plead- 
ing, writing, and arithmetic are necessary to enable the rural labor- r and 
the small hemp, cocoanut, or tobacco farmer to make contracts for the sale 
of his oroducts and to know what price he shtould receive for that which 
he has "to sell. With this knowledge, too, he will soon be able to know 
his own rights and to resist the absolute control which is now frequently 
exercised over him by the local cacique. 

"The necessity for a common school system was emphasized in the 
instructions of President McKinley to Secretary Root, and those respon- 
sible for the government of the Islands have been earnest and active in 
seeking to establish one. The language selected for the schools is English. 
It is selected because it is the language ef business in the Orient, because 
it is the language of free institutions, and because it is the language 
which the Filipino children who do not know Spanish are able more easily 
to learn than they are to learn Spanish, and it is the language of the 
present sovereign of the Islands. The education in English began with 
the soldiers of the American Army, one of whom was detailed from each 
company to teach schools' in the villages which had become peaceful. When 
the Commission assumed authority it sent to the United States for 1,00) 
American teachers, a«d after the arrival ef these pioneers in the Islands, 
a system of primary schools was inaugurated together with normal schools. 

"Public educational work In the Islands is performed under the Bureau 
of Education, with the central onTce located in Manila, having 37 divisions 
each in charge of a division superintendent, embracing in all 379 scho'U 
districts each in charge of a supervising teacher. The total number oJ 
schools in operation during the past year was : Primary schools, 3,435 : 
intermediate schools, 162 ; arts and trades schools. 32 ; agricultural schools, 
5 ; domestic science schools, 17; and provincial high schools, 36, making 
a total of 3,687 and an increase from the previous year as follows : 327 



W0N-C0NTIGU0U8 TWm'T—TWB FMILIMXWM. 4* 

primary aohools, 70 intermediate school*. 16 arts and trade* schooU, 3 
agricultural schools, and 9 domestic ■oiance schools. There are engaged 
in the teaching of these schools at present 717 permanent American teachers 
«.nd 109 temporary appointees, and all of these are paid out of the central 
treasury. In addition to these there are what are known as Filipino 
insular teachers, numbering 455, who are paid out i 

In addition to these there are 5,656 municipal Filipino teachers, all of 
whom speak and teach English and who are paid out of the treasuries of 
the municipalities." 

Educational Fund \e«ded. 

Secretary Tai't. in another part of his excellent report, states 
that the Philippine Government is without lands enough to 
educate in the primary and industrial schools all the present 
generation of school age. and unless some other soun 
funds than the governmental revenue is found it will take longer 
than a generation to complete the primary and industrial edu- 
cation of the common people of these Islands. 'T'ntil that 
is done." he wisely concludes, "we oui/'it not to Hit our guiding 
hand from the helm of the ship of state of the Philippine Is- 
lands." 

lie lays particular stress upon the importance of this edu- 
cation, however, as the only means of rescuing' the Filipino 
people from their present unfitness for popular self-government. 
He believes in their capacity for future development by popu- 
lar education, general and political, which he asserts will en- 
able them to become a self-governing people. Commenting upon 
the generally admitted fact that eighty per cent of the Fili- 
pino people are to-day densely ignorant, he traces the cause 
of that ignorance to the peculiar conditions under which they 
have lived for generations in the past, and says : 

"They are in a state of Christian tutelage. They are childlike and 
simple, with no language but a local Malay dialect spoken in a few prov- 
inces ; they are separate from the world's progress. The whole tendency 
under the Spaniards was to keep them ignorant and innocent. The Spanish 
public school system was chiefly on paper. They were for a long time 
subject completely to the control of the Spanish friar who was parish 
priest and who generally did not encourage the learning of Spanish or 
great acquaintance with the world at large. The world owes to the Span- 
ish friar the Christianization of the Filipino race. It is the only Malay 
or oriental race that is Christian. The friars beat back the wave of 
Mohammedanism and spread their religion through all the Islands. They 
taught the people the arts of agriculture but they believed it best to keep 
them in a state of innocent ignorance." 

In order to lose no opportunity to extend the system of 
general education of the people, every move seems to have 
been calculated for tlfe benefit of the people. For example, 
when the Civil Service was established necessarily, in the be- 
ginning, subordinate officers and clerks had to be chosen almost 
exclusively from Americans and competent foreigners, who grad- 
ually, however, gave way to the appointment of natives. On 
this point Secretary Taft in his recent report to the President 
says : 

"The organization and maintenance of the central government were di- 
rected not only with a view to its efficiency but also to Its educational 
effect upon the Philippine people. This is shown in the appointment of 
three Filipinos to constitute three-eighths of the insular legislature as well 
as by the opportunity offered to Filipinos to enter the civil servloe under 
a civil service law embodying the merit system. In the beginning It 
t was difficult to work Filipinos into the bureaus of the central government, 
| because few of them knew English and fewer understood the Amerioan 
business and official methods, which, of course, obtained in the new govern- 
ment. As the years, went on. however, under greal pressure from the 
Commission, the proportion of Filipinos in the service was Increased from 
year to year. Many natives had learned English and had shown an in- 
creasing aptitude for the work of the civil service. Still in many of 
i the bureaus the progress of Filipinos to the most responsible places I* 
necessarily slow anil the proportion of them to be found in the position* 
\ of high salaries is not as large as it ought to be In the near future. The 
' winnowing-out process, however, is steadily reducing th>> American em- 
ployees in the civil service. It has become a body of high! 
faithful public servants, whom, it is hoped, the Philippine government will 
I make permanent provision for." 

Some Practical Improvements Made in (ho l'lii I lppinca. 
One thing, however, is sure. The benefit and | pur- 

pose of the United States in the beginning of our rit>m 

of the Philippine Islands as annoninc 

■word uttered or ael «l me Ivy the lamented M<-Kiulr\ an 

successor, President Roosevelt, was flip establishment of and 
faithful adherence to a policy of gradual enlightenment and edu- 



420 NOW-CONTIGUOUS TEWY—THE PHILIPPINES. 

cation of the Filipinos, with a view to their gradual but steady 
development into a self-governing people. Under that policy, 
which has never wavered, the United States made quick ar- 
rangements for the participation of the Filipinos themselves 
in civil government, giving them the right to participate in 
the enactment of laws as well as their enforcement through 
the courts, and by the aid of local constabulary and police 
force composed of duly selected Filipinos. More than this, 
good wagon roads were constructed between provinces and sec- 
tions of the Islands which previously had been almost r.n- 
traversable, and railroads, which had hardly been known there 
before, were, together with a system of telegraph lines, post- 
offices, coastwise steamboat transportation facilities, and va- 
rious agricultural improvements, provided for and inaugurated 
in all directions. In addition to these industrial developments, 
watchful attention was directed to the methods and conditions 
of business in the Islands, and at the proper time provision 
was made for the establishment of banks for the safe deposit 
of money — a business blessing which the Filipinos had never 
known of before. 

The Filipino people were also given a non-fluctuating coin 
and paper currency and, as set forth in detail in a preceding 
paragraph, a well-defined system of popular education was in- 
augurated, due provision being made for the education and train- 
ing of Filipino students to act as teachers In the Filipino 
schools. 

Among the most practical advantages secured for the Islands 
is the increase in postal facilities, which enables the people 
to communicate quickly and promptly with the remote parts 
of the Islands. In 1900 there were but nineteen post-offices, 
whereas according to the reports for the last year there were 
five hundred and five post-offices, and the postal employees had 
increased from one hundred and thirteen to one thousand and- 
ninet3^-one, while the receipts from the sale of stamps had 
jumped from 288,187.35 pesos to 607,233.47 pesos. To accomplish 
this gratifying result a system was devised in which mail sub- 
sidies were granted to commercial lines on condition that 
good service at reasonable rates of transportation should be 
maintained upon safe and commodious steamers. The Govern- 
ment vessels which had previously been purchased in order to 
promote intercourse between the Islands are now used on out- 
lying routes only where commercial lines will not take up 
the traffic, but of course are used in connection with the com- 
mercial lines ; and in this way continuous mail routes are 
being- extended and the marine commerce communication be- 
tween the Islands is made to increase and to prosper. By the 
consent of the Secretary of War, and on the recommendation 
of the Commanding General of the Philippines and the agree- 
ment of the civil government there, all the telegraph lines 
in the Islands have now been transferred to the Post-office De- 
partment of the Civil Government of the Philippines. These 
telegraph lines reach into the remotest provinces as well as to 
all of the principal islands of the large Archipelago. 

A Notable Business Benefit. 

One of the most notable benefits conferred upon the Fili- 
pino people is the postal savings bank, which has proved to 
be a most advantageous institution. At first this bank was 
patronized by more Americans than Filipinos, but the Fili- 
pinos are now showing their appreciation of it by their recently 
reported deposits, amounting to over a million pesos. This 
bank, which was established by the Philippine Commission in 
May, 1906. allows any person over six years of age residing 
in the Philippine Islands and not under legal disability to 
open an account. Before its establishment there was abso- 
lutely no secure way for the keeping of money by the people, 
many of whom had been in the habit of purchasing postal 
notes to be retained in their possession indefinitely. Thus the 
Filipinos had little opportunity to make investments of their 
savings, or to make them secure in any manner, and least of 
all in a manner to yield them any income. Tk« postal aaringa 



NON-CONTIGUOUS TEKY—TIIE PHILIPPINES. 421 

banks allow the people to deposit small sums of money on 
which they receive interest at the rate of two and one-half 
pei- cent per annum, to be increased later if the bank shows 
that it can be successfully done without loss to the Govern- 
ment, 

Another very essential institution needed by the people, and 
which, if the plans now making- are executed, will soon be 
provided for, is the proposed Agricultural Bank, authorized 
by the Act of Congress passed last year. As stated recently 
by Secretary Taft in his special report on the Philippines to 
the President : 

"One of the crying needs of the Philippines is capital, and this 
whether it be for the development of railroads, wagon roads, manufactures, 
or in the promotion of agriculture. The usurious interest which has to 
be paid by the farmers is so high as to leave very little for his profit 
and maintenance and ever since we entered the islands the cry for an 
agricultural bank which would lend money for a reasonable interest, say, 
10 per cent, has been urged upon the Commission. Last year Congress 
authorized the government to guarantee the interest of 4 per cent on a 
certain amount of capital invested in such a bank, but up to this time no 
one has embraced the opportunity thus offered to undertake the conduct and 
operation of a bank, although negotiations are pending looking to such a 
result. It is now proposed that the government shall undertake this instead 
of a private individual." 

Railroads and Dirt Roads. 

Aside from all the other beneficial improvements in the 
Philippine Islands, however, one of the most valued, from a 
commercial as well as a moral point of view, is the development 
of the railroad system there. When the United States captured 
the Philippine Islands in May, 1898, there were in operation 
therein only one hundred and twenty miles of railroad, ex- 
tending from Manila northward to Dagnpan. There was later 

I constructed on the authority of the Philippine Commission 

| enough additional trackage to bring the total mileage up to two 
hundred miles, all being in the Island of Luzon. Under the en- 
abling acts of Congress of July 1, 1902, and February 6, 1905, fur- 
ther concessionary grants were made by the Philippine Commis- 

j sion for four hundred and twenty-eight additional miles of rail- 
road in Luzon, and two hundred and ninety-five miles in the Is- 
lands of Panay, Cebu, and Negros. Engineers representing the 
concessionaries immediately left the United States to make the 
preliminary surveys and prepare specifications and maps to be 
submitted to the Governor-General for approval of final routes. 
These final routes are to be substantially in accordance with 
those selected by the Government, which have been highly com- 
mended by the engineers both of the Government and the con- 
cessionaries, one of them stating that the same mileage could 
not have been better selected to produce revenue or to serve 
the Government's ends of reaching the large interior towns 
and rich uncultivated lands and of furnishing an outlet for 
the present and prospective produce of the Islands. All of 
the lines will run through rich country, capable of producing 
large quantities of hemp, rice, sugar, tobacco, cabinet woods, 
and minerals. 

The extension of railroads in the Philippines will correct 
the very deplorable conditions which have heretofore prevailed 
on these Islands. Until 1892 there was no commercial rail- 
road whatever on the islands, but at that time under a grant 
made in 1887, the Manila and Dagupan Railroad began operations 
over a line one hundred and twenty miles long*, hi 1898 when 

\ we took possession of the Philippines, this was the only rail- 
road in the Archipelago, inhabited by nearly eight millions of 
people, with an area of 115,000 square miles. Some idea of 
the backwardness of this people might perhaps be better given 
in a comparative way. For example, in Algeria, with a population 
not exceeding five million and an area of is i.ooo square miles. 
there are about three thousand miles of railway in operation; 
in New Zealand, with a population of eight million and a 
haif. and an area, of 10 1.000 square miles, there are two thou- 
sand four hundred miles of railway in operation; while in 
(Queensland, with a population of five hundred thousand and an 
area of 664,000 square miles, there are two thousand eight 
hundred miles in operation, and in Tasmania with on* hundred 



4M ^ TV0N-C0NTIGU0UI8 TER'Y—THE PHILIPPINES. 

and seventy-two thousand inhabitants and 26,000 square miles 
there are one hundred and twenty miles in operation. 

It will thus be understood what a lack of progress there 
was in the Philippine Islands under the Spanish regime, and 
it was with the view of rescuing the people from the deplorable 
conditions into which this sort of government had placed them 
that the UnYte'd States undertook its munificent policy of de- 
veloping the Islands and uplifting the people, keeping constantly 
a watchful, eye for opportunity to help them along toward good 
government as well as agricultural and industrial improvement. 
In some respects the United States Government, as stated ei*se- 
where in these comments, seems to have been able to do more 
for the Filipino people than for the people of the United 
States, because while County and State and National conven- 
tions have been for a long time past proclaiming the importance 
of improving the roads and public highways and many men 
have been elected to office on that platform, definite laws are 
yet to be passed on that subject. In the Philippine Islands, 
however, during 1904 two hundred and fifty-two miles of new 
roads were constructed and sixteen hundred and sixty-two miles 
of bad old roads were repaired, while during 1905 there were con- 
structed one hundred and fifteen miles of new roads and nine 
hundred and ninety-two miles of roads were repaired — these 
improvements aggregating a total outlay of between three and 
four millions of dollars. The roads will be of incalculable bene- 
fit to the natives in bringing their produce to market and encour- 
aging further, industrial development of the country through 
which they pass. Numerous other roads are also being built 
in the Islands for the purpose of benefit to the agricultural 
districts principally, though some of them, it must be admitted, 
were primarily to assist the military in their operations of safe- 
guarding property and preserving the peace. All of the roads, 
however, will naturally be of permanent use in the gradual 
industrial and commercial growth of the Archipelago, as a 
whole. 

In July, 1906, the Philippine Commission passed an act 
known as the Koad Law, which provides that whenever accepted 
by the Provincial Board and the majority of the Assembly 
of the Presidents and Counsellors of the municipalities of any 
province, five days' work upon the highways by every able-bodied 
man of the province should be rendered every year, or pay- 
ment of an equivalent of five days' wages in cash. It is be- 
lieved that these Assemblies will see their way to accept this 
law, and should they do so there may eventually be established 
throughout the Archipelago what is known as the Caminero sys- 
tem, which consists in dividing the roads into sections of such 
length as can be cared for by the continuous work of one man ; 
those wishing to work out their tax may deposit road material 
at given depositories along the road or give their service to 
new construction or reconstruction where the nature of the 
work is such that gangs become necessary. The money re- 
ceived from those not wishing to work is used to support the 
caminero or road worker. By this system definite responsibility 
for deterioration of any part of the road can readily be placed, 
and it has the further advantage of reducing the expenses of 
repairs, which in the tropics, where the rainfall is so abundant, 
amounts to considerable within the year. 

The Friar Lands. 

The "Friar lands" problem, one of the most fruitful sources 
of unrest in the whole Philippine situation, was finally disposed 
of by purchasing some four hundred and ten thousand acres 
of land at about seven millions of dollars. According to Act 
No. 1,120 of the Philippine Commission, the lands thus pur- 
chased have been placed in the control of the Bureau of Public 
Lands, with directions to proceed as rapidly as possible to their 
sub-division and sale to the occupants thereof upon ten years' 
time and at first cost to the Government. Though the exe- 
cution of this duty will involve the expenditure of much time 
and ialu.r, as w< !! as som'e^ practical difficulties, still there is 
a feneral disposition on the part of the former tenants of the 



NON-CONTIGUOUS TBR'Y—THE PHILIPPINE*. 4M 

religious orders, who are the present occupants of the land, 
to accept the liberal terms offered by the Government. The 
Governor-General of the Philippines in his report on this sub- 
ject sa^s : "Whether any ultimate loss will be incurred in these 
large transactions can only be a matter of conjecture ; but how- 
ever it may be, it must be a subject of real congratulation 
that what threatened to become a cancerous sore on the bod\ r 
politic has been extirpated." 

Present Conditions an to Peace and Order. 

All these improved conditions in the Pnilippines have nat- 
urally tended to the enlightenment and elevation of the people, 
whose heightening self-pride and increasing interest in the gov- 
ernmental affairs have undoubtedy exercised upon them a benef- 
icent influence. At any rate, peace now prevails in the Philip- 
pine Islands to a greater extent than ever before in their history. 
True, there have been disturbances in three of the Filipino prov- 
inces as well as in the Moro province, but none of these had 
for its object the expulsion of the sovereignty of the United 
States, which now seems to be recognized by the Filipino people 
as a fixed government over the Archipelago. In Cavite, which 
is regarded as the "Mother of Ladrones," as the people them- 
selves call it, has ever been the hotbed of Ladronism or gang 
robbers in the Philippine Islands ; and therefore disturbances 
in that neighborhood assume the nature of brigandage rather 
than of insurrection against the civil government. The trouble 
in Samar grew out of abuses in the way of extortion prac- 
ticed upon their ignorant countrymen by prominent natives who 
as agents for large export houses in Manila force them to 
sell their hemp at a nominal valuation and then themselves 
turn it in to the business houses in Manila at the market prices, 
putting the difference in their own pockets. Some unscru- 
pulous outlaws in the country took advantage of the excited con- 
dition of the people caused by these commercial outrages, or- 
ganized them into bands, and used them to revenge themselves 
upon their oppressors and for purposes of reprisal, which have 
been set forth in detailed reports from the Philippine Commis- 
sion. 

The Mount Dajo affair was a culminating incident of six 
months of peaceful effort to induce the band of Malay pirates 
to desist from i-aids upon a peaceful community. These efforts 
were interpreted as cowardice and the outlaws finally sent a 
challenge to the Government forces to come out and fight them. 
In the encounter that ensued the troops were assisted by the 
respectable Moro element of the Islands where the disturbances 
had Occurred. 

The disturbances in the Moro provinces and on the Island 
of Luzon were promptly overcome, while that on the Island of 
Samar continued to manifest itself from time to time. Samar, 
by the way, was an unknown territory which the Spaniards 
during their three hundred years of occupation never attempted 
to explore — the interior of the Island of Samar being a mare 
tropical jungle and mountain fastness, inhabited by semi-bar- 
barous tribes, the haven of the criminal refugees from surround- 
ing islands, and all in all a nest of iniquity too bad eve*, for 
Spain to handle. The work of the Americans there was that 
of pioneers, and with the usual result ; but it is worthy of note 
that the law-abiding inhabitants of the Island have organized 
volunteers to assist the constabulary in putting an end to fur- 
ther disturbances there, and the cooperation between the civil 
I and the military authorities is complete, so that little trouble 
i may be expected there hereafter. 

While of course there must be expected from time to time 
throughout the Archipelago some minor disturbances as occur 
I even in the most highly civilized communities, still it is safe 
to assume that there will not be any organized hostile oper- 
ations on any considerable scale hereafter. The best assurance 
of this assumption is Me noticeable manner in which the people 
throughout the entire Archipelago have settled down to peace- 
fid occupations, tending their fields and plying their trad** 
with a whole-soul*d earnestness never before observed. There 



424 N ON-CONTIGUOUS TER'Y—THE PHILIPPINES. 

are of course also likely to arise times of depression in business 
affairs and instances of great discouragement from the failure 
of crops in certain sections of the Islands — conditions and ex- 
periences which are not unusual in other parts of the world 
where the best of governments prevail — but the reports re- 
ceived from the provincial governors, all of whom are natives, 
indicate the generally increased prosperity and contentment of 
the people, with constantly increasing faith and kindly goodwill 
towards the American government. Not long ago, March 3, 
1903, it will be, remembered Congress appropriated three mil- 
lion dollars in United States currency for the alleviation of dis- 
tress throughout the Philippine Archipelago caused from war, 
loss of cattle from plague, etc.- This money was piaced at the 
disposal of the Philippine Commission and by it expended 
through appropriation acts of the Commission for the relief 
of the communities of the Islands that were suffering most 
acutely. Manj T of the provinces of the Islands where the bene- 
fits of this relief fund were felt have, according to the eloquent 
reports of their governors, shown the good work it has done. 
One provincial governor (Batangas, in 1904), speaking of the 
feeling of the people of his province for this generous aid, said: 
"With an indomitable and invincible spirit, and with head erect, 
proud of their self-reliance during this struggle against the 
cruelties of nature, they only bend the head to kiss and bless 
the generous hand of America and render to it unconditional 
adhesion and infinite acknowledgment for the splendid gifts 
that it has showered upon the people in days of sorrow, misery 
and hunger." 

When the United States assumed control of the Filipinos, 
they were in a chaotic condition of insurrection and intestinal 
turmoil. They were, as a class, steeped in ignorance, and never 
had been accustomed to self-government. Now we find them 
happier, more comfortable, more prosperous, certainly more 
peaceful and in every way more interested in their lives than 
ever before — all living- under governments conducted in the 
municipalities and provinces by their own chosen governing offi- 
cials. We see a judicial system in which a large number of 
their own people hold place as judges, and we find a leg- 
islative body charged with the duty of enacting laws for 
their government — a legislative body composed in the lower 
house entirely of their own people, while in the upper house of 
that legislative body the number of native members of the Com- 
mission, which corresponds to the Senate in this country, is 
within one of equaling those appointed by the United States. 
Few governments on earth to-day are based upon more lib- 
eral principles, which contemplate not only popular suffrage, 
but every other feature of a Republican form of government, 
than which none better has ever yet been suggested either by 
friends or foes. 

It would seem only fit and proper to conclude this paper 
on the Philippine Islands by quoting at length from the Presi- 
dent's recent message to the Senate and House of Represent- 
atives, which constitutes an interesting resume of the question 
and reads as follows : 

"To the, Senate anil House of Representatives : 

"I transmit herewith the report of Secretary Taft upon his recent 
trip to the Philippines. I heartily concur in the recommendations he 
makes, and I call especial attention to the admirable work of Governor 
Smith and his associates. It is a subject for just national gratification 
that such a report as this can be made. No great civilized power has 
ever managed with such wisdom and disinterestedness the affairs of a 
people committed by the accident of war to its hands. If we had followed 
the advice of the misguided persons who wished us to turn the islands 
loose and let them suffer whatever fate might befall them, they would 
have already passed through a period of complete and bloody chaos, and 
would now undoubtedly be the possession of some other power which there 
is ©very reason to believe would not have done as we have done ; that is, 
would not have striven to teach them how to govern themselves or to 
have developed them, as we have developed them, primarily in their 
own interests. Save only our attitude toward Cuba, I question whether 
there is a brighter page in the annals of international dealing between 
the strong and the weak than the page which tells of our doings in the 
Philippines. I call especial attention to the admirably clear showing made 
bv Secretary Taft of the fact that it would have been equally ruinous if 
we had yielded to the desires of those who wished us to go faster in the 
direction of giving the Filipinos self-government, and if we had followed 



XWi'OOVTIOUOUM TMR'T—EAWAlIAy IMLANDt. «« 

J 
tfc* policy adv«o«ite« by ©thsra, who desired ue simply to rule the islands 
without any thought at all of fitting them for self-government. The 
islanders have made real advances in a hopeful direction, and they have 
opened well with the new Philippine Assembly^ they have yet a lone; 
way to travel before they will be fit for cornp government, and 

lor deciding, as it will then be- to do, whether this self-govern- 

ment shall be accompanied by complete independence. It will probably 
•e a generation, it may even be longer, before this point is reached ; but 
it i« moht gratifying that such sub antia) program toward this as .1 
has already been accomplished. We desire thai it be reached at as early 
a date as possible for the sake of the Filipinos' and for our own sake. 
But improperly to enrleavor to hurry the time will probably moan that the 
goal will not be attained at all. 

"(Signed) THEODORE ROOSEVELT. 

"Tka White Ilouwe, 

"January 27, 190i." 



THE HAWAIIAN ISLANDS. 

Tli« Hawaiian Islands are no longer a political issue. While 
a Democratic President and Secretary of State piaaiied for 1 heir 
annexation more than a half century ago. while they many wars 
later applied for admission and raised the American flag-, and 
while that American flag was hauled down by the orders of an- 
other Democratic President, carried out by a former Member of 
Congress, the} r have since that time come permanently under the 
American flag, becoming- a territory of the United States with a 
delegate in Congress, and the relation of those islands to the 
United States is no longer a political issue. Yet the effect of 
annexation upon the prosperity of the people and the prosperity 
©f erur own trade with them is interesting and worthy of record. 

The growth of prosperity in the Hawaiian Islands began wilh 
that closeness of relationship brought about by the reciprocity 
treaty with the United States, which resulted in annexation, and 
perfect freedom of interchange between those islands, a tropical 
area with tropical products to sell, and the United States, a tem- 
perate zone area desiiing- tropical products, and having temper- 
ate zone products te exchange therefor* The production of sugar, 
which was formerly almost the sole product, grew from 25 mil- 
lion pounds at tlie date of the reciprocity treaty to 500 million 
pounds in the year before annexation ; but on the assurance 
which annexation furnished that the markets of the United 
States would remain permanently open to tins product, the sugar 
production of the Hawaiian Islands has in the short period since 
annexation grown to over 800 million pounds, having thus in- 
creased over one-half since 1899. The value of the sugar product 
of the Hawaiian Islands during the decade prior to annexation 
ranged from 8 to 16 million dollars per annum. In 1899 it 
crossed for the first time the 20 million dollar line. Since an- 
nexation the value has ranged from 25 to 35 million dollars per 
annum Practically all of this has been sent to the United 
States, and in exchange tne islands have taken from the Uniie.l 
SI ales everything which they import, except certain products of 
China and .lapan especially required by their Chinese and Japa- 
nese population, and that class of fertilizers for the plantations 
which can only be obtained from the nitrate beds of Chile. That 
the annexation of the Islands and the permanency of trade rela- 
tions therewith have resulted advantageously to the commerce of 
the United States is quite apparent from the fact that the value 
of our shipments to the Hawaiian Islands, which ne\rr touched 
the 10 million dollar line prior to 1900. has heen cont i nuousl v 
above that line since annexation, and in 1907 was pract ically 1 .*» 
million dollars, and in the fiscal year 1908 seems likely lo exceed 
that sum. The total value of merchandise *ent from the United 
States to the Hawaiian Islands in the ei«:ht. years since annexa- 
tion aggregates nearly 100 million dollars, while in the curio 
years immediately preceding annexation the value of our ship- 
ments to those islands was but 58 millions, having 1 thus practi- 
cally dOUbleS as Compared with the corresponding term of years 

immediately prior to annexation. 

Meantime conditions in the islands have been greatly im- 
proved. Large investments of capital from the United 64aUs 



426 WON-CONTIGVOUa TMR'Y—FORTO MIOO. 

were made immediately following the annexation, which thus as- 
sured permanency of government, and permanency of relations 
with the United States ; large additions were made to the popula- 
tion, and new efforts were made towards a diversification of in- 
dustries. The Department of Agriculture established an experi- 
ment station in the Islands, and careful studies have been made 
of the producing power of the various sections with reference 
to various tropioal • and subtropical products, with the purpose 
of diversifying as much as possible the industries and products 
of the islands, and thus increasing the earning power of the 
people, and especially of developing opportunities by which 
persons of small capital or those desiring to build up prosperous 
lines of business ©f their own and own their own homes may 
be able to do so much more readily than in the production of 
sugar, which requires large estates and large investments. 

The Governor of the Islands, Hon. H. W. Frear, in his inaugu- 
ral address in 1907, referring to conditions since annexation, 
said : 

"Seven brief years, and yet -what grand results if we but pause to view 
them ; years, it is true largely of adjustment to new conditions, but equally 
years of advancement. The entire body of Hawaiian statute laws has been 
put into compact and harmonious form and added to by numerous laws, 
remedial and constructive. * * Local government has been established 
without the baneful results predicted. * * Recovery has been had from 
a calamitous pestilence attended by extensive conflagrations in the capital ; 
scientific investigation has been begun for the ultimate eradication of the 
most dreaded disease ; the public health has never been better safeguarded. 
* * The schools have grown in quality of work as well as in number of pupils. 
Progress has been made in the application of advanced criminological 
principles, especially as applied to juvenile delinquents. Evidences of moral 
and religious quickening are apparent on every hand. Muoh has been ac- 
complished in the construction of public works and preservation of forests, 
settlement of public lands, introduction of labor, of city-making material, 
the establishment of diversified industries, the execution of irrigation proj- 
ects, and utilization of water power. * * Even before annexation the con- 
tract labor system had largely disappeared, a system possessing in some 
degree the principle of profit-sharing has come into general practice that 
increases returns to both planter and laborer. The planters have begun ex- 
tensively to provide the laborers with homes of sufficient size for residence 
and gardening purposes ; a beginning has been made toward co-operation in 
the establishment of homesteads of sufficient size to support families Inde- 
pendently." 



PORTO RICO. 



On the 18th of October of this year, Porto Rico completes the 
tenth anniversary of its existence within the jurisdiction of the 
United States. Of this period a year and a half was under mili- 
tary government and eight years and a half under a civil govern- 
ment established by the Act of Congress of April 12, 1900. 

The changes for the better in this period of ten years have 
been remarkable, and the improvement in education, sanitation, 
commerce, and the administration of justice has demonstrated 
the wisdom and far-seeing ability of the Republican party. These 
improvements have not been made without overcoming serious 
obstacles. In less than a year after the Americans assumed con- 
trol, the progress of the island received the worst setback known 
in its history. On August 8, 1899, Porto Rico was visited by the 
most severe cyclone that it has ever experienced, as a result of 
which thousands of lives were lost and millions of dollars worth 
of property destroyed. Not only was the coffee crop for that 
year totally lost, but a very large percentage of the coffee trees 
themselves were completely ruined. In many places the soil on 
the sides of the mountains was washed away, so that where 
fertile plantations once existed, but bare rocks remained. The 
serious nature of this disaster can be understood only when it 
is realized that the value of coffee alone exported during the last 
years of the Spanish Government exceeded the combined value 
of all the other exports. The success of the United States, there- 
fore, has been all the more remarkable when one considers the 
inauspicious beginning of* the administration. 

Free trade between the United States and. Porto Rico was 
established ©n July 25, 1901. All duties collected on goods be- 
tween the United States and Porto Rico prior to this date were 
subsequently appropriated by Congress for the construction of 
schools, roads, and other public improvements on the island. 



WOX-CONTIGUOUS TBR'Y— PORTO RIOO. 427 

The value of the exports and imports under the Spanish gov- 
ernment reached its high-water mark in 1896. wj.ien the total 
trade of the island amounted approximately to the equivalent of 
$22,000,000 United States currenc}'. Under American occupation 
there has been a steady increase in the trade of Porto Rico, 
which, for the fiscal year ending June 30, 1907, amounted to 
$56,263,472. The value of the exports and imports for that year 
each amounted to more than the total trade of the island in any 
one year under the Spanish government. In the same year more 
than 204,000 tons of sugar, with a total value of $1-1,770,000, were 
exported from Porto liico. as compared with the record under 
Spain, in 1884. of 109.000 tons. The amount of sugar now pro- 
duced is more than 320 per cent, greater than it was in 1897, the 
last year of Spanish rule. The value of tobacco exported in the 
twelve months ending June 30. 1907. amounted to approximately 
$5,500,000. The year before the United States assumed control 
(one of the most prosperous years under the Spanish Govern- 
ment) the value of tobacco exported was approximately $700,000, 
showing an increase of 700 per cent, in the ten years of American 
administration. During the past year more cigars were im- 
ported into the United States from Porto Rico than from Cuba. 
The following brief table shows the increase in the trade of the 
island since the issuance of the last campaign book in 1904 : 



Fiscal Year. 


Imports. 


Exports. 


Total exports 
and imports. 


1904_„ 


$13,169,029 
16,536,259 
21,827,605 
29,267,172 


$16,265,903 
18,709,535 

23,257,530 
26,996,300 


$29,431,932 


1905 


35,215,824 


1906 


45,085,195 


1907 


56,263,472 









It will be noted that the total trade in four years has nearly 
doubled. 

In education also there has been a very great advance. More 
than 70,000 pupils are enrolled in the public schools, and the 
expenses for educational purposes now aggregate more than 
$1,000,000 annually. 1,200 school teachers are employed, and 
great effort is being made to extend opportunities for education 
in the outlying rural districts. When the Americans took charge 
of the island, they found but one school building owned by the 
government. There are now over 80 buildings completed or 
under construction, exclusively for school purposes, including a 
normal school in the city of San Juan and high schools in the 
important cities. In addition to this number, over six hundred 
buildings are rented for school purposes. Education is given in 
English and Spanish and the children are rapidly acquiring a 
knowledge of the former language. 

Much attention has been paid to the question of sanitation, 
and in the past ten years thousands of people have been cured 
of uncinariasis, more commonly known as the hookworm disease. 
Prior to American occupation this disease was generally attrib- 
uted to malnutrition. In the early days of American occupation. 
Army surgeons atlendant upon the natives suffering from the 
cyclone, discovered that this sickness was caused by a parasitic- 
worm, and was curable if taken in time. A Commission was 
created in the winter of 1904, for the study and treatment of 
this disease. Free stations for the care of patients were es- 
tablished in central locations throughout the island, and a cam- 
paign of education as to the prevention and cure of the disease 
was at once commenced. The Commission estimated that 90 per 
cent of the rural population of Porto Rico was infected with this 
form of anemia, which gradually sapped the strength of the 
patient, frequently resulting in death. Tn the past four years 
over 150,000 natives, or one-seventh of the population, have been 
treated at the expense of the government. The results have been 
most satisfactory, and many families, disabled by the disease. hav<> 
been returned to the number of wage-earners. Hopes are enter- 
tained that uncinariasis will be eradicated from the island by 
the efforts of the administration. This result would work a great 
change in the social and economical status of the inhabitants of 
the interior. 



4»S NON-CONTIGUOUS TER'Y— PORTO RICO. 

In order to afford opportunities to the farmers of the interior 
to bring- their produce to the seacoast for shipment to the 
markets of the United States and elsewhere, the government has 
bent its energies to the construction of an extensive system of 
roads. In the past ten years twice as many miles of macadam 
roads have been constructed by the American government as 
were built in the 400 years of Spanish control. This policy has 
opened up lands in the interior which ten years ago were prac- 
tically valueless. It is not too much to say that in certain sec- 
tions of the island the value of land has increased 1,000 per cent. 
In order to carry on this work further, the insular governmei I. 
in the winter of 1907, disposed of government bonds to the 
amount of $1,000,000, the proceeds to be devoted exclusively to 
the building of roads and bridges. This is the first and only debt 
of the insular government since the American occupation. The 
splendid financial condition and the economic prosperity of the 
island was so well recognized, that at a time of considerable 
dullness in the bond market, when many excellent municipal 
bonds were not bringing par, these 4 per cent twenty-year serial 
bonds sold at an average of over 107, the longer term series 
bringing over 113. 

In addition to the roads, communication has been greatly in- 
creased by railroad construction, the mileage of which is at 
present approximately double what it was ten years ago. 

The insular government operates the telegraph lines, the num- 
ber of offices of which have increased since 1904 from 39 to 128. 
Practically all of the operators are Porto Ricans, who have been 
carefully trained in this work under the supervision of the 
government. 

A number of charitable institutions have been established 
since American occupation, and the Porto Kicans, always a phil- 
anthropic people, have heartily supported the efforts of the gov- 
ernment on these lines. In the past few years a blind asylum 
has been opened for the care of the indigent blind, the govern- 
ment insane asylum has been enlarged and greatly improved and 
a reform school for boys has been commenced. This latter in- 
stitution is exceedingly important, as it will remove youthful 
violators of the law from the corrupting influence of hardened 
criminals. 

An important step taken by the Congress of the United States 
some years ago was the establishment of the Porto Rico Pro- 
visional Regiment of Infantry. C^amzed in 1899, the enlisted 
and non-commissioned force of the regiment, consisting of two 
battalions, is composed exclusively of Porto Ricans. In addition, 
many of the junior officers are natives of the island, and the 
force is supported entirely by United States funds. Prior to 
the American Occupation no such regiment was found in Porto 
Rico. The military forces which Spain maintained in the island 
were composed of Spaniards and paid from Porto Rican funds. 
In this way not only does the United States put into circulation 
annually a large sum but it provides an institution which gives 
most excellent moral, mental, and' physical training to the natives 
of the island. On account of the physical improvement, due to 
regular exercise and good food, the habits of discipline and 
knowledge of the English language, acquired during the terms 
of enlistment, former members of the regiment find their serv- 
ices in great demand in various important positions throughout 
the island. 

Public order i's excellent, and is maintained by a force of 
some 800 police, composed entirely of Porto Ricans, with the ex- 
ception of' the chief and assistant chief. 

Financially, the United States government* has done much for 
Porto Rico. The customs revenues on foreign articles imported 
into the island are paid into the insular treasury. The internal 
revenue laws of the United States are not extended to Porto 
Rico, but the local legislature is vested with the power of enact- 
ing insular internal revenue laws, and the proceeds from these 
taxes go to swell the, revenues of the Island, and are not deposited 
in the United States treasury. 

Harbor improvements in the port of San Juan, costing more 
than three-quarters nf a million dollars, have been authorized 
and begun, and a public building, to cost $300,000, is under pro- 
cess qf construction in the capital. 



NOT? -CONTIGUOUS TER'Y— PORTO RIOO. 429 

American capital is being invested in various enterprises, the 
most important o*? which are railroads, the construction of sugar 
centrals, or factories for the extraction of sugar from the cane, 
electric lighting plants, trolley lines, and in various agricultural 
enterprises, the most recent and successful of which is the cul- 
tivation of citrus fruits and pineapples. 

There has been adopted an excellent system of laws based on 
codes in force in various parts of the United States and made 
adaptable to conditions existing in the island. Among the most 
important are codes of criminal and civil procedure, and a civil 
and criminal code, which do away with many provisions of the 
former laws repugnant to the ideas of American jurisprudence. 

The object of the Republican party in conducting affairs in 
Porto Rico has been twofold : first to increase the prosperity of 
the island and to enforce impartial justice, giving equal opportu- 
nity to all for advancement; and second, to educate the natives of 
the island to the standards and principles of American adminis- 
tration, so that increased self -government may be granted them 
as soon as they show their capacity for it. The administration 
not only has for its purpose the establishment of good govern- 
ment, but it endeavors to educate the people so that they can 
take more and more part in that government. Great steps in this 
direction have already been made. The 66 municipalities of the 
island have complete autonomy. The officials of the municipali- 
ties are elected by popular vote, and have full power to enact 
ordinances with regard to municipal affairs. 

In the judicial branch, the Supreme Court is composed of 3 
Porto Ricans and 2 Americans. The judges and district attor- 
neys of the district or trial courts are composed of 13 Porto 
Ricans and 3 Americans, while all the municipal judges and jus- 
tices of the peace are Porto Ricarus. The legislative assembly 
is made up of two houses, the lower house or House of Delegates, 
consisting of 35 members, or 5 from each of the 7 districts of the 
island, are elected by popular vote, and are all Porto Ricans. The 
upper house, or Executive Council, consists of 11 members ap- 
pointed by the President, "at least five of whom shall be native 
inhabitants of Porto Rico." It will therefore be seen that no 
act can be passed except with the approval of the lower House 
of Delegates, composed entirely of Porto Ricans and elected by 
popular vote. 

The number of Americans in positions supported by insular 
revenues is comparatively small, being less than one-ninth of the 
total number of employees. Should the municipal employees bq 
included in this number, the percentage of Americans would of 
course be very much smaller. It will be seen therefore that the 
Porto Ricans have a very important share in the government. 
Xever before in the history of the island have they been allowed 
such a large and influential part in the administration as they 
have at the present time. 

The wisdom of the policy of the Republican party during the 
past 10 years, as directed by President McKinley and President 
Roosevelt, has been fully demonstrated, and has more than justi- 
fied the exrwc tat ions of even its wannest friends. It is safe to 
say that in »o ether tropical country in the world has there e>er 
been, in so short a time, such rapid and marked inerease in sani- 
tation, order, prosperity and education. 



THE PANAMA CANAL. 

From Christopher Columbus to Theo lore Roosevelt. :\ period 

of 400 years, man sought in vain U)\- a means of transferring 

spls carrying men and mjerchand^se adross that narrow 

of land which separates the waters of the Atlantic and 

Re oceans, known as the isthmus of Panama. S ■• ires Of 

surveys were made: thousands of lives were lost: millions of 

dollars expended in futile attempts, and it remained for the 

Government oi i' u ' 1'uited States,, under a Republics i President 

arid Secretary of War, to take the prelimiu; ad with 

the assent of Congress to actually snter upon the work of 



430 THE PANAMA CANAL. 

constructing a ship canal. In doing this they have laid the 
plans so broadly and carefully that the country and the world 
may expect to see a completed modern canal, capable of floating 
the largest of vessels, in operation by 1915, and to see it con- 
structed at a minimum cost and, what is more important, at a 
minimum loss of life. It was the first care of President Roose- 
velt and Secretary Taft in developing plans for this work to 
inaugurate a system by which the appalling loss of life which 
had characterized all former undertakings on the Isthmus 
should be averted, and in this they have been eminently suc- 
cessful. The state of health of the thousands of workmen and 
officials employed on the canal, and the success of the efforts 
to prevent tropical diseases have been the marvel of the medi- 
cal and scientific world, while the speed at which the work is 
being pushed forward under modern methods is a matter of 
surprise to the foreign observers and of pride to every Ameri- 
can. 

The canal is no longer an issue. No American, whatever his 
party, raises his voice against the policy of the construction 
and ownership and control of this American Interoceanic Canal 
bjr the Government of the United States. The feeble protests 
which were uttered against the prompt recognition of the Re- 
public of Panama by this Government were heard no more 
when a score of the leading countries of the world hastened to 
follow our action, and when the issue was presented to the 
Democratic party in the ratification by the Senate of the treaty 
with Panama in February, 1904, one-half of the Democrats vot- 
ing cast their votes with the Republicans for ratification. Since 
that time the question has been no longer a party issue, and 
Democrats have vied with Republicans in their expressions of 
gratification that the dirt is actually flying. Men who have been 
for years prominent leaders in the Democratic party are devoting 
their time and energies on the Isthmus and at home to up- 
holding the hands of the President and the Secretary of War, to 
whom the details of this great work have been intrusted. 

Record of the Work. 

It remains therefore to present at this time merely the 
record of the work performed in this great enterprise, which 
every American, irrespective of party, is proud to cal! that of 
his country. 

Under the provisions of an Act of Congress which had been 
approved March 3, 1899, the President appointed a commission 
to examine and report upon the different practicable routes for 
an Isthmian canal, and this commission finally reported in 
January, 1902, in favor of the Panama route, although in No- 
vember, 1901, it had reported in favor of the Nicaragua route. 
It changed its recommendation, it seemed, in favor of the 
Panama route after the French canal company had agreed to 
dispose of all its rights, property, and unfinished work on the 
Isthmus for forty millions of dollars. 

Section 7 of the Spooner Act (June 28, 1902) provided for 
a commission of seven members, at least fonr of whom should 
be engineers, and at least one an officer of the army ;:nd one 
an officer of the navy. The first commission was appointed 
under this Act on March 8, 1904, with Admiral Walker, of the 
navy, as Chairman, and General George W. Davis, as the army 
member, and in addition the following five civilians : William 
Barclay Parsons, C. E. ; William H. Purr, C. E. ; Benjamin M. 
Harrod, C. E. ; Carl Ewald Grunsky, C. E., and Mr, Frank J. 
Heeker. 

On May 8, 1904, the Commission passed a resolution designat- 
ing General Davis as the representative of the Commission on 
the Isthmus, and under the provisions of a letter addressed 
by the President to the Secretary of War on May 9, 1904, General 
Davis was designated Governor of the Isthmian Canal Zone, 
and was the only member of the Commission who was to be 
regularly stationed there. In this letter, which might be 
probably considered an executive order, the President put the 
work of the Commission under the supervision of the Secretary 
of War. 



TEE PANAMA OANAL. 481 

The Act of Congress approved April :2:j, 1 001, provided that 
until the expiration of the Fifty-eighth Congress ail ihe mili- 
tary, civil, and judicial powers, as well as the power to i 
all rules and regulations necessary for the government of the 
Canal Zone, and all the rights, powers, and authority grv 
to the United States by the terms of the treaty between Ihe 
United States and the Republic of Panama, should be vested in 
such person or persons and exercised in such manner as the 
President should direct. In the letter of .May Q, 1904. above men- 
tioned, the President directed that these powers should be vested 
in and exercised by the Canal Commission until the close of the 
Fifty-eighth Congress. Under this authority the Commission 
enacted twenty-four laws, covering a wide range of subjects, 
but dealing principally with the organization of the govern- 
ment of the Zone and the judiciary, including a criminal eode. 

In May, 1004, Lieutenant Marl; I'rooke. Corps of Khiginei i's. 
U. S. A., representing the United States on the Isthmus of 
Panama, was instructed by the Attorney General of the United 
States to take possession of all the canal properties there. This 
transfer of property having been made, instructions were at 
once given Lieutenant Brooke by the Isthmian Canal Commission 
to continue operations with the same force of employes and 
laborers as were engaged on the work under the French Canal 
Company at that time. At this time no excavation was being 
done except in the Culebra Division, and the total excavation 
from May to December, 1904, amounted in round figures to 
243,000 cubic yards. 

In the meantime, the Walker Commission was occupied with 
various problems concerning- sanitation and government of the 
Canal Zone, and the acquiring of necessary plant for prosecut- 
ing the work. Colonel W. C. Gorgas, U. S. A., was appointed 
Chief Sanitary Officer, and immediately organized a most effi- 
cient system of sanitation. 

The Commission was given control over the Panama Rail- 
road, all the commissioners being- made directors, it being re- 
cognized that the railroad must be an adjunct to the construc- 
tion of the canal, and at the same time fulfilling the purpose 
for whieh it was constructed as a route of commerce. 

Mr. John F. Wallace was engaged as Chief Engineer on 
June 1, 1904. 

Nearly all matters of importance came before the Walker 
Commission as a body, there then being no separate and inde- 
pendent heads of departments as provided in the present organi- 
zation, except that the Chief Engineer and the Governor of the 
Zone had a certain limited authority. The Walker Commission 
was succeeded by the Shonts Commission on April 1, 1905, con- 
sisting of four civilians, two of whom were engineers, two army 
engineers, and one civil engineer of the navy. Mr. Wallace was 
continued as Chief Engineer and made one of the Commissioners. 
The personnel of this Commission was as follows : T. P. Shonts, 
Chairman; Charles E. Magoon, Governor of the Canal Zone; 
John F. Wallace, Chief Engineer; Reaft Admiral M. T. Endieott, 
[J. S. Navy; Brig. Gen. Peter C. Hains, U. S. Army: Col. O. H. 
Ernst, U. S. Army, and Benjamin M. I La. rod. 

Under the provisions of an executive order of fche President, 
dated April 1. 1905, three distinct departments were mvnled. 
namely: (1) The Chairman, in charge of fiscal affa'irsj 
( liase and delivery of materials and supplies, accounts and 
auditing; the commercial operations in ihe United Statefe erf 
the Panama Railroad and Steamship Lines, ami of Khe general 
concerns of the Commission, subject to the supervision ancl 
direction of the Secretary of War 1 ; I "> Th-> Qoretrnor of i he 
Canal Zone, in charge of administration of law and of all 
matters of sanitation, and required to reside on the Isthmus; 
(3) The Chid' Engineer, in charge of aetiial work of bemstlrae- 

tion on the Isthmus, having custody of supplies and platfl there; 

charged with fche practical operation of th<- railroad *o 'he 
Isthmus, with special view bo it i ruc- 

tion ; also required to reside ^n the I- i hums. TIm< other engi- 
neer members of the Commission <*onstitTrfced an i 

peering committee and their ho:i [qifn rt •■■•-, were in Was iii^ton. 
The order provided for the appointment l>v the Commission of an 



482 THE PANAMA CANAL. 

Executive Committee of three members to act in place of the 
Commission during intervals between meetings, and the three 
heads of the Departments above named constituted this Com- 
mittee. These heads of Departments were authorized to ap- 
point all officers and employes in their respective Departments, 
subject to the approval of the Commission. 

Mr. Wallace resigned on June 28, 1905, and was succeeded by- 
Mr. John F. Stevens as Chief Engineer, although the latter was 
not made a Commissioner until June 30, 1906. 



Lock Canal Adopted. 

Chief Engineer Wallace, in a report dated February 1, 1905, 
recommended that a sea-level canal be constructed, and shortly 
thereafter a coinmitee of three of the engineer members of the 
Commission, namely, Messrs. Burr, Parsons, and Davis, also 
recommended the adoption by the Commission of a sea-level 
plan. Up to this time it had been assumed that a lock canal 
would be constructed substantially in accordance with the plan 
recommended by the former Commission in 1901. 

The reports of Chief Engineer Wallace and the Engineering 
Committee, above referred to, favoring a sea-level canal created 
doubt as to the best type of canal to be constructed, and in the 
President's order of April 1, 1905, appointing the Shonts Com- 
mission, he declared his intention to appoint a Board of Con- 
suiting Engineers to advise on the important engineering ques- 
tions arising in the selection of the best plan for the construc- 
tion of the canal. This Board was appointed by the President 
by an executive order dated June 24, 1905, and consisted of the 
following eight American and five foreign engineers: General 
George W. Davis. Chairman; Mr. William Barclay Parsons; Mr. 
William TL Burr; Mr. Alfred Noble; Gen. Henry L. Abbot; Mr. 
Frederic P. Stearns; Mr. Joseph Ripley; Mr. Isham Randolph, 
Americans; and Mr. William H. Hunter, British; Mr. Ad. 
Guerard, French,; Mr. Eugene Tincauzer, German; Mr. J. W. 
Welcker, Dutch, and Mr. E. Queilennec. of the Suez Canal Staff. 
This Board divided in its recommendations, eight members, in- 
cluding the five foreigners, and General Davis, Mr. Parsons and 
Mr. Burr, advocating a sea-level canal with a minimum width 
of 150 feet; the other five members recommended a lock canal 
with an 85-foot summit level and three locks at Gatun on the 
Atlantic side, and one at Pedro Miguel, and two near the coast 
on the Pacific side. On June 29, 1906, Congress passed an Act 
directing that the Canal be constructed "of the general type 
proposed by the minority of the Board of Consulting Engineers," 
the President, the Secretary of War, and the majority of the 
Commission having united in recommending this type. 

The delay in reaching a decision as t<* the type of canal 
retarded somewhat the progress of the work, but as soon as the 
question was definitely decided the work was prosecuted with 
gradually increasing vigor. 

Description of tlie Canal. 

The canal will have a summit elevation of 85 feet above the 
spa. to b> r a'-'hed by a flight of three locks, located at Gatun. 
on th* At' intic side, and by a flight of two locks at Mirafiores, 
and one !<>"k at Pedro Miguel on the Pacific side; all these locks 
to be in duplicate, that is, to have two chambers, side by side. 
The summit level will be maintained b} r a large dam at Gatun 
and a small one at Pedro Miguel, making' the great Gatun Lake, 
which will have an area bf 164.23 square miles. A small lake, 
about two square miles in area, with a surface elevation of 55 
feet, will be formed on the Pacific side of the canal between 
Pedro Miguel and Mirafiores, the valley of the Rio Grande being 
closed by a small dam and the locks at Mirafiores. 

'I he canal is to be about fifty miles in length from d°ep 
water in the Caribbean Sea to deep water in the Pacific Ocean. 
Th° distance from dee]) water to the shore line in Limon Bay, 
x I intic side, is about 4 1 /? miles, and from the Pacific shore line 
lw deep water is about 5 miles; hence the length of the 



THE PANAMA CAJTAL. 4tt 

canal from shore to shore will b*e approximately 40^ mile*. 
The bottom width of the canal will vary from 200 feet in Cule- 
bra Cut to an indefinite width in the deep waters of Gatun 
Lake. The approaches from deep water to land on both sides 
of the canal are to be 500 feet wide, and the cuts in the shal- 
low parts of the lakes from 500 to 1,000 feet wide. The canal 
will have a minimum depth of 41 feet. Each lock will have 
a usable length of 1,000 feet, a width of 110 feet, and a de[/th of 
4 feet 4 inches over the sills. The walls of the locks will be of 
concrete, and the gates of steel. 

The great Gatun dam, which will impound the waters of the 
Chagres, the Gatuncillo, and Trinidad rivers, and create a lafce 
whose normal summit level will be 85 feet above the sea, will 
be practically a mile and a half long, half a mile wide at the 
base, with its crest 135 feet above mean tide, and the top thick- 
ness of the dam of the cross section now adopted will be 80 
feet. There will be a spillway in about the middle of this dam, 
constructed through a hill or solid ground now existing, by 
means of which the level of the lake will be controlled, it being 
the intention never to let it exceed 87 feet in height. The level 
of water in the lake will be the same as that throughout the 
Culebra Cut, and as far as the upper lock gates at Pedro 
Miguel. 

In entering- the canal from the Atlantic side a *hip will 
proceed from deep water in Lirnon Bay to Gatun locks, a dis 
tance of slightly over seven miles, through a channel 500 feet 
wide ; going through the flight of three locks at Gatun. she will 
traverse nearly six-tenths of a mile before reaching Gatun Lake. 
85 feet above the sea ; thence for a distance of nearly 16 miles 
there will be a channel through the lake of 1,000 feet or more 
in width to S&n Pablo; from San Pablo to Juan Grand*'. 3.8 
miles, the channel will be 800 feefc wide; from Juan Grande to 
Obispo, 3.7 miles, the channel will be 500 feet wide, and it 
may be said that at this point navigation through the lake will 
be terminated and the entrance to the Culebra Cut will begin, 
although the channel from Obispo to Las Cascadas, a distance 
of one and a half miles, will be maintained at 300 feet ; thence 
to Cucaracha, a distance of 4.7 miles, the channel x v I be 
200 feet wide and from Cucaracha to Pedro Miguel, a distance 
of 1.9 miles, the channel will again widen to 300 feet. Going 
through the Pedro Miguel lock and approaches, nearly three- 
tenths of a mile in total length, the vessel will be lowered to 
the level of Miraflores Lake. 55 feet above mean tide, through 
which there will be a channel 500 feet wide and 1.4 miles long to 
the Miraflores locks ; thence through the two Miraflores locks, of 
a total length, including approach walls of over nine-tenths of a 
mile, she will be lowered to the tide level and proceed through a 
channel 500 feet wide and 8 miles long to deep water in the 
Pacific. 

It will thus be seen that about 25 miles will be navigated 
through the two lakes, where the minimum channel width is 
500 feet, and where, therefore, practically full speed can be 
maintained. The sea-level channels at both ends of the canal, 
a total length of about 15 miles, can also be traversed at prac- 
tically full speed. Aside from the locks there will be only 
about 8 miles to be navigated through channels from 200 to 300 
feet wide. 

Amount of "Work Done by the French. 

The amount of material excavated by the ohl and new French 
Panama Canal Companies was 81>548,000 cubic yards, and ot 
tMs amount it has been estimated thai about 3G.ono.noo yards 
will be utilized in the construction of the present canal. 



Work Done by the CommlMion. 

The plan adopted by the United States required a total ex- 
cavation, srince May 1, 1904, of approximately 148,000*000 cubic 
yards. I'p to the i »8, there ; " excavated 

31.892.000 cubic yard-. LeaviDg 110,108,000 cubic yards to be ex- 
•avated. 



494 THE PANAMA CANAL. 

JH&U Caring- for Health of Employees. 

Up to the end of January, 1908 (the latest date for which 
figures are now available), there had been expended over 
$13,000,000 on account of civil administration, municipal im- 
provements, and sanitation^ which covered the work of build- 
ing roads, providing fire and police establishments, courts ol' 
justice, schools, postolfiees, the erection and. maintenance of 
hospitals, and the sanitation of the Canal Zone, including the 
Cities of Panama and Colon. 

The principal streets of Panama and Colon have been paved, 
and water works and sewer systems established in both cities. 
Three large reservoirs have been constructed and pumping 
stations and standpipes established where needed, ample pro- 
vision thus having been made for supplying waiter for all towns 
and villages in the Canal Zone, as well as in the cities of 
Panama and Colon. 

During the past year fifteen hotels for Americans, eighteen 
mess halls for Europeans, and twenty-three kitchens for West 
Indian laborers have been operated, the employes concerned 
paying- for their meals practically only the cost of food and 
the operation of the different establishments. 

President Roosevelt, commenting upon this subject in his 
special message to Congress after his visit to Panama in 1906, 
said : "The first great problem to be solved, upon the solution 
of which the rest of the work depended, was the problem of 
sanitation. * * The results have been astounding. The Isth- 
mus had been a pyw'dra for deadly unhealthfulness. Now, after 
two years of our occupation, the conditions as regards sickness 
and the death rate compare favorably with reasonably healthy 
localities in the United States." 

Contracts to Lowest Bidders. 

The following- is a provision relative to contracts for pur- 
chase of supplies contained in the executive order of the Presi- 
dent, of January 8, 1908, regarding the organization and work of 
Uie Commission, and is substantially the same as that contained 
in the executive order of the President dated April 1, 1905 : 
> yn "jSontracts for the purchase of supplies, involving an es- 
timated expenditure exceeding $10,000.00, shall be made only 
after due public advertisement in newspapers of general cir- 
culation, and shall be awarded to the lowest responsible bidder, 
except in case of emergency, when, with the approval of the 
Secretary of War, advertising may be dispensed with. 

"In the making of contracts for supplies or construction in- 
volving an estimated expenditure of more than $1,000.00 and 
less than $10,000.00, competitive bids shall be secured by invi- 
tation or advertisement whenever practicable." 

The I* al» or Snpply. 

Americans are given preference in every branch of the work 
in which their services can be had. Pew of them are willing 
to undertake the hard labor on the canal in that climate, and 
therefore for this class of labor the Commission has been com-, 
pelled to look elsewhere. 

The skilled labor force is recruited in the United States. 
Agents of the Commission receive applications for all outside 
positions, personally examining the individual and looking into 
his previous service record. Whenever an applicant is not with- 
in convenient reach of the employment agent written applica- 
tions are received direct by the Washington Office of the Com- 
mission; This includes trainmen, steam-shovel operators, fore- 
men, and mechanics. Clerks, stenographers, draftsmen, doctors, 
and nurses are secured through the Civil Service registers. All 
appointments are made through the Washington Office, which 
also arranges for transportation of employes to the Isthmus, 
including members of their families. The skilled force on June 
TiO. 1906. 'was approximately 2.500 and on June 30, 1907, actually 
4.-104. To increase this force 1.904 men and provide for the 
usual separations, due to sickness, resignations, etc., 3,038 men 
were brought from the United States during the year. 



THE PANAMA CANAL. 4$6 

An executive order, signed by the Secretary of War by au- 
thority of the President, February 8, 1908, provides that on and 
after that date the employment of skilled laborers, clerks, and 
all others who had theretofore been known as gold employees 
of the Commission should be restricted to American citizens, 
except where American labor or service of the t-naracter re- 
quired is not available. Foreign employees were not to be 
affected by this order save that in the event of any reduction 
in force preference should be accorded to American citizens. 

Owing- to the unwillingness of American laborers to engage 
in the heavy work in the tropical climate of Panama the un- 
skilled labor force is brought from the West Indian Islands and 
from Europe. On June 30, 1907, the unskilled labor force con- 
sisted of 4.317 Europeans and 14.008 West Indians. 

Appropriations for the Canal. 

In addition to the $40,000,000.00 paid to the French Com- 
pany for its property and rights of all kinds on the Isthmus, 
and' the $10,000,000.00 paid to the Kepublic of Panama for the 
rights granted under the treaty between that Republic and the 
United States, there have been appropriated by Congress the 
following amounts "to continue the construction of the Isth- 
mian Canal" : 

Act of June 28, 1902. This Act limits the 
amount to be thereafter appropriated to 
the sum of $145,000,000, of which there 

is appropriated thereby $10,000,000.00 

Act of December 21, 1905 11.000.000.00 

Act of February 27, 1906 5,990,786.00 

Act of June 3.: 1906 25.456.415.08 

Act of March 4, 1907 27,161,307.50 

79.608,568.58 
Act of February 15, 1908 12,178,900.00 



91.787,468.58 



Time of Completion of Canal. 

In addition to excavation preliminary work on the locks and 
dams is progressing, and it is estimated that the laying of 
concrete in the locks will commence about January 1, 1909. It 
has also been estimated that the determining factor in this 
time of completion of the canal will be the construction of the 
Gatun dam, and while the total excavation required for the 
rest of the work could probably be finished in less time, it is 
the intention to adjust the whole work so that all the separate 
parts will be completed at approximately the same time, which, 
it has been unofficially estimated, will be about January, 1915. 



Wliat tlie Canal Moans. 
[By Charles M. Pepper.] 

There are many meanings 1<> the ("anal and many results 
from its construction by the United States. 

The daily story of the strain shovels is one of the most fasci- 
nating and instructive chapters in the history of canal construc- 
tion, telling as it dot's in the record of the thousands of cubic 
yards excavated in the Culcbra Cut the marvelous engineering 
progress that is being made on the Waterway; The sanitary 
miracle wrought in freeing the Isthmus from yellow fever epi- 
demics and other tropical diseases and in insuring a healthy 
and effective body of laborers is another chapter in canal build- 
ing to which the world offers no parallel. The transplanting of 
the American bona 1 life, the schools, the churches, and the Young 
Men's and Young Women's Christian Associations is a contribu- 
tion to Christian civilization which will find a responsive echo 

in the millions of American homes where these ideals ;m> cucr 
ished. The zealous and intelligent devotion to duty which is 
shown by the (anal Commission and its employees, Prom the 
highest to the lowest, is an example for all peoples who would 



436 THE PANAMA CANAL. 

advance in civic virtue up to the American standard. But there t 
are other chapters in which the Canal policy, as inaugurated by 
President Roosevelt and carried out by Secretary Taft, opens 
new prospects. There is both the immediate and the ultimate 
expansion of American commerce and the legitimate extension of 
the moral and political influence of the United States which 
goes with it. 

The Canal means more trade in the Orient and on the West 
Coast of Central and South America. It means more trade in 
the first j)lace because the trade routes are shortened. The 
Canal puts into force the railway maxim of the short rail and the 
long- water haul as the best for the producer, the common car- 
rier and the consumer. This shortening of the routes means that 
the Mississippi Valley with its agricultural products, its flour, 
its farm tools and other machinery has this haul for the 500,000,- 
000 consumers in the Orient, it means that the cotton mills of 
the South will be closer to this huge body of buyers, and that 
the shipping of the world will draw on the Southern coal fields 
for fuel. It means that the factories of New England and the 
Eastern States, saving the 10,000 miles voyage around Cape Horn, 
will have a short cut from the Western to the Eastern Hemis- 
phere, which will neutralize the advantage that the Suez Canal 
gives to their European competitors ; that New York will be as 
near to China as Liverpool is, and that it will be 2,000 miles 
nearer to Japan. 

Here is some of the trade of the United States with the Orient 
and with Oceania to-day : Japan, $108,000,000 ; the Chinese Em- 
pire and Hongkong, $70,000,000 ; the British East Indies, $93,000,- 
000 ; the Dutch East Indies, $14,000,000. This is a big quantity of 
goods going out and a big quantity coming in, most of which will 
be favorably affected by the Canal route. It is some measure of 
the future growth of our Pacific commerce, which in the last dozen 
years has risen from $125,000,000 to $400,000,000. 

Then there is the trade with our American Asiatic capital — 
Manila. The foreign commerce of the Philippines under our peace- 
ful and fostering control has now reached $65,000,000, and is ex- 
panding toward the $100,000,000 mark. The present interchange 
of $20,000,000 of commodities between the United States and the 
Philippines will undoubtedly grow, and the United States will 
absorb a larger share of the business. There is also the trade 
of our strategic territory in the mid-Pacific, the Hawaiian 
Islands, which, when the Canal is opened, will be shipping 
through it 400,000 tons of sugar-cane products to the refineries on 
the Atlantic coast. 

But above all, there is the Pan-American meaning of the 
Canal. It means that for a large section of South America the 
dream of James G. Blaine becomes true and the markets of the 
United States are extended, while the products of those coun- 
tries flow to us in an unbroken stream. It means that the pol- 
icy of closer commercial relations which was inaugurated by 
President Roosevelt will continue unchecked, and that the influ- 
ence of the visit of Secretary Root in fostering and fomenting 
Pan-American trade will grow deeper, while the Monroe Doctrine 
will vindicate its utility to the commerce of both continents. The 
Canal means that the people of the West Coast of Central and 
South America, through their reciprocal commercial interest, will 
be neighbors to the United States in fact as well as in name. 

The foreign trade of the South American and Central Ameri- 
can countries which are within the radius of the Canal now ap- 
proximates $300,000,000 annually. It is not an exaggerated esti- 
mate that by the time the waterway is opened this commerce will 
have reached $500,000,000, and the tendency will be for it to 
gravitate more and more to the United States. Here is an illus- 
tration of the way commerce has grown since the United States 
obligated itself to build the Canal : 

** In 1904 the trade between the United States and Chile was 
$15,150,000; Bolivia, a few thousand dollars; Peru, $7,000,000; 
Ecuador, $3,700,000. In 1907 the trade was: Chile, $28,500,000; 
Bolivia, $2,500,000; Peru, $13,000,000; Ecuador, $4,800,000. In a 
single year the imports from Peru were increased by nearly 
$5,000,000, and this was because the great American mine inter- 
ests were getting 1 the first returns from their copper investments 



THE PANAMA OAWAL. 4M 

and were sending- thousands of tons across the Isthmus to the 
nulis and factories of the United States to be fabricated into 
railway material, electrical apparatus, and the countless other 
articles, into which copper enters. When the Canal is opened 
and these shipments can be made without the necessity of the 
railway transfer across the Isthmus their volume will be vastly 
increased, and substantially all the mines of the Andes will be 
laying down their products in the United States. 

The. Canal means that the^ vast treasure house of the Andes, 
the silver and gold, the tin and copper mines, are to be opened 
up by capital from the United States, while the products of the 
farms and the output of the factories will be carried to .them 
more quickly and more cheaply. There are hundreds of millions 
of untouched mineral wealth lying in these mountains waiting 
not for future ages, but for the present generation to exploit 
them. The Canal means the railway building which will make 
this exploitation possible, because under the paramount moral 
influence of the United States and under the commercial pros- 
perity which the Andean countries see coming to them as a result 
of the Canal all are encouraged to maintain the stable govern- 
ment which alone can draw foreign capital to them. 

There is now $75,000,000 of American capital invested in the 
section of South America which is directly tributary to the 
Canal. Much of this capital was invested after it became settled 
that the United States would build the waterway. Without such 
incentive those Andean treasure-houses would have remained un- 
touched for generations yet. This American capital has gone into 
the heart of South America — Bolivia — where it is building rail- 
ways and is opening up tin and copper and silver mines. There 
is $25,000,000 of it that already has g'one, and more will g-o in the 
future. It has gone into Peru, where $20,000,000 has been in- 
vested in a single enterprise, that of exploiting the great Cerro 
de Pasco copper fields. Other investments of American millions 
have been made in other copper mines and smelting works in 
Peru. American capital has gone into Ecuador, where it con- 
trols the marvelous railway leading from the coast through the 
clouds over the Andean plateaus to the ancieut capital of Quito. 
In all the countries it has gone into these mining and railwaj' 
enterprises, and it is now going into general trade, so that 
American goods are being pushed and handled by Americans. 

One of the first results of the Canal has been the development 

of the Kepublic of Panama into a prosperous tropical State. In 

I 1907 it had a total foreign trade, of more than $19,000,000. Nearly 

$8,000,000 of this was exports from the mills and factories of the 

United States to the Canal Zone to be employed in building the 

I waterways. All told, the United States shipped $18,665,000 worth 

j of goods to Panama. Of the imports taken by it in addition to 

the Canal supplies there was $5,200,000 of other commodities 

from the United States, and the prosperous little commonwealth 

j increased its exports by $843,000, the total amount being 

$1,961,000. Practically all these exports were taken by the 

United States. 

Here are some of the products from the farms and factories 
of the United States that were consumed on the Isthmus during 
1907: Flour, $350,000; cotton cloths and wearing apparel, $850,- 
000; coal, $545,000; explosives, $275,000: steel rails, $370,000; 
wire. $167,000; locomotives. $1,093,000; other steam engines. $1.- 
015,000; miscellaneous iron and steel products. $1,540,000; boots 
and shoes, $421,000; packing house products. $1,400,000; illumi- 
nating and other oils. $280,000; vegetables, $284,000; paints, 
$157,000; soap, $110,000: sugar, $94,000; lumber and various 
.products of lumber, $2,000,000; miscellaneous products. $1,600- 
I 000. 

The growth in the eommeree between the United States and 
the countries of Central and Soulh America, 1 he new market for 
railway material and machinery, for textiles and breadstuff si 
the employment of American capital in building the railroads 
and in opening up the mines. I In- opportunities foxr young Ameri- 

cans which these enterprises have offered, arc among the first 
fruits of the Canal. A larger trade, more paying investment*, 
and wider opportunities will come as the work progress**. 



438 DEMOCRATIC EXPANSIONISTS. 

THE DEMOCRATS AS EXPANSIONISTS. 

Democrats Schemed for the Annexation of Cuba, Hawaii and 
Other Islands. 

Nearly every Democratic President from Jefferson to Bu- 
chanan expressed a desire for the addition of Cuba to the terri- 
tory of the United States, several of them hinting at a similar 
desire with reference to Porto Eico, and that at least one of 
them actively pressed for the annexation of the Hawaiian Is- 
lands to the United States, while schemes looking to the addi- 
tion of non-contiguous territory in Central America and upon 
the Isthmus of Darien were favored by leading Democrats. 

Many Democratic Presidents Wanted to Annex Cuba. 

Jefferson, both Avhile President and afterwards, in corre- 
spondence with Madison and Monroe, frequently expressed a 
desire that Cuba should some time become a part of the United 
States, and the Democratic text hook as late as 1898, issued as 
an official document of the Democratic party, quotes extracts 
from his letters 'in support of that statement. President Monroe 
also expressed himself in favor of making Cuba a part of the 
United States. Polk favored the annexation of Cuba, and Hon. 
James D. Eichardson, the present member of Congress from 
Tennessee, who now holds up his hands in holy horror at the 
thought of this kind of expansion, says in his index to the 
Messages and Papers of the Presidents, page 332, volume 10 : 

President Polk made a proposition in 1840 for the purchase of the island 
by the American Government for $100,000,000. In 1834 the Ostend mani- 
festo claimed the right of the United States, should Spain refuse to sell 
Cuba, to take and annex it. 

The Ostend manifesto, it will be remembered, was an an- 
nouncement made by President Pierce's Ministers to England, 
France and Spain (Buchanan. Madison, and Soule), in which they 
suggested that an earnest effort be made to purchase Cuba at a 
price not to exceed $120,000,000, and added that if this should be 
refused by Spain "we should be justified by every law, human 
and divine, in wresting it from Spain if we possess the power,"' 
a proposition of which Lossing, the historian, says : "The bald 
iniquity of this proposition amazed honest men in both hemi- 
spheres." 

Spain having refused to sell, and the sentiment of the world 
failing to sustain the Democratic proposition to seize the inland, 
Pierce's Administration failed, but that of Buchanan immediately 
took it up again, and President Buchanan, in three of his annual 
messag-es to Congress, urged that Cuba ought to be made by 
purchase a part of the United States. Daring his term a bill 
for that purpose was introduced in Congress by Senator Slide 11, 
whose name is well remembered in connection with the Confede 
rate Government, and was sustained by Southern Democrats 
generally, while the same proposition for obtaining control of 
the island of Cuba by some process was publicly commended by 
Jefferson Davis in a speech in his own State during that time. 
The efforts of the various Democratic Presidents for the pur- 
chase of Cuba having been rejected by Spain, the Democratic 
national convention took up the question and in the platforms 
upon which two of its candidates, Douglas and Breckinridge, 
ran in 1860 it declared pointedly in favor of the annexation of 
Cuba, as follows : 

Resolved, That the Democratic party are in favor of the acquisition of 
the island of Cuba upon such terms as shall be honorable to ourselves and 
just to Spain. 

Democratic Efl'ort to Annex Hawaii. 

It is also on record that at least one Democratic President 
attempted to make Hawaii a part of the United States, al- 
though within the memory of the present generation a Demo- 
cratic President hauled down the United States flag in that is- 
land and withdrew from the Senate a treaty of annexation 
which a Republican President had sent to that body. Under 
President Pierce an active effort was made to annex Hawaii, 
and probably would have been successful but for the death of 



DEMOCRATIC EXPANSIONISTS. 481 

the King after the treaty of annexation had been prepared and 
forwarded to the United States. It is a matter of official record 
in the State Department that negotiations were opened I)}' Presi- 
dent Pierce, through his Secretary of State. Marcy, and the 
Minister to the Hawaiian Islands, David L. Gregg, for the an- 
nexation of Hawaii; that a treaty for that purpose was drawn 
and forwarded to the United States in 1854, and tha; while 
President Pierce objected to certain of its features, his Secretary 
of State responded to Minister Gregg that — 

This Government will receive the transfer of the sovereignty of the 
Sandwich Islands with all proper provisions relative to existing rights 
of the people thereof, such as are usual and proper to territorial sover- 
eignty. Tlie President directs me to say that he can not approve of some 
of the articles of the treaty ; there are in his mind strong objections to 
the immediate incorporation of the islands in their present condition into 
the Union as an independent State. It was expected that the Hawaiian 
Government would be willing to offer the islands to the United States 
as a Territory and leave the question in relation to their becoming a 
State to the determination of this Government, unembarrassed by stipu- 
lations on that point. * * * The President desires me to assure you 
that he takes no exception whatever to your course in this difficult and 
embarrassing negotiation, but, on the contrary, it is highly approved. 
Your efforts have been properly directed and your ability is appreciated 
and commended. 

Yucatan and the Danish West Indies wanted by Democratic 
Presidents. 

In addition to the above evidence of Democratic efforts to 
add island territory to that of the United States, a part of it 
thousands of miles awaj r , it may be further remarked that 
President Polk in a message to Congress, on April 20, 1848, in- 
timated strongly a desire to send troops to Yucatan and take 
possession of that territory, suggesting that this might be ad- 
visable in order to prevent that territory from falling into the 
hands of a European power, while President Johnson, after 
severing his allegiance to the Republican party and receiving 
the support of the Democrats, recommended, in a mes.-age to 
Congress, the purchase of the Danish West Indies. 

[Extracts from Democratic Platforms.] 

18-14 
The reoccupation of Oregon and the reannexation of Texas 
at the earliest practicable period, are great American measures. 
which this convention recommends to the cordial support of the 
Democracy of the Union. 

1860 
That the Democratic party is in favor of the acquisition 
of the Island of Cuba on such terms as shall be honorable to 
ourselves and just to Spain, at the earliest practicable moment. 

1884 
This country has never had a well-defined and executed 
foreign policy save under Democratic administration. That 
policy has ever been in regard to foreign nations, so long as 
they do not act detrimental to the interests of the country or 
hurtful to our citizens, to let them aloue ; that as a result of 
this policj' we recall the acquisition of Louisiana, Florida, Cal- 
ifornia and of the adjacent Mexican territory by purchase 
alone, and contrasl these grand acquisitions of Democratic 
statesmanship with the purchase of Alaska, the solo fruit of -a 
Republican administration of nearly a quarter of a century. 



IMPORTS OF TROPICAL AM) SUBTROPICAL ARTICLES INTO 

llli: I M'l'lM) STATES. 

These tables are given because of their special interest at 

this time when i he United States is developing a close relation 

of interchange with certain tropical areas: In the Porto 

j Rico and Hawaii, an absolute freedom of interchange of its 

manufactures and temperate /one products for the tropical pro- 



4 40 



DEMOCRATIC EXPANSIONISTS. 



ductions of those islands ; in the case of the Philippines, re- 
duced rates of duty on articles coming from those islands, and 
in the case of Cuba, a reduction in rates of duty on products 
coming- from that island and in return therefor reduced rates 
of duty on articles from the United States entering that island, 
It will be seen that the value of tropical and subtropical mer- 
chandise brought into the United States, including that from 
our own islands, has grown from 145 million dollars in 1870 to 
567 millions in 1907, and that a very large prox^ortion of these 
articles are of classes absolutely required for manufacturing or 
for foods and in most cases of a class which are not produced 
in the United States, or at least not sufficient for our own re- 
quirements. 



Value of principal imports of tropical and subtropical articles 
at quinquennial periods from 1870 to 1907. 



• Articles. 


Year ending June 30 — 


1870. 


1890. 


1900. 


1907. b 


Sugar and molasses a 

Coffee 


$60,802,601 

24,234,879 

3,017,958 

6,043,102 

3,459,665 
7,416,592 
4,181,736 
13,863,273 
331,573 
2,511,334 
1,288,494 

418,064 
1,513,126 

670,131 
1,007,612 

224,918 

52,760 

1,776,908 


$82,915,044 
78,267,432 
24,331,887 
20,541,767 

14,854,512 

20,746,471 

21,710,454 

12,317,493 

1,392,728 

3.221,292 

5,697,280 

2,859,642 
3,223,071 


$85,949,891 
52,467,943 
45,329,760 
26,373,805 

31,792,697 
19,263,592 
15,661,360 
10,558,110 
7,960,945 
6,320,711 
6,884,704 

6,210,985 
3,401,265 
2,430,702 
2,279,036 
1,909,483 
1,736,458 
2,189,721 
1,667,256 
1,049,034 
1,083,644 
1,446,490 
1,209,334 
411,029 
563,065 
536,303 


$127,351,448 
78,384,182 


Silk 


71,411,899 


Fibers _ 


42,254,355 


India rubber and gutta 
percha __ -_ - _ - __ 


59,121,320 


Fruits and nuts _ 


37,040,689 


Tobacco, and mfrs of 

Tea i 


35,608,109 
13,915,544 


Cotton 


20,995,684 


Vegetable oils __ 


15,394,581 


Gums _ _- 


14,974,156 


Cocoa, and mfrs of, and 
chocolate - 


14,578,989 


Spices 


5,113,000 




5,355,600 


Rice _ . 


2,540,674 

1,588,767 

1,741,383 

1,453,298 

794,503 

909,582 

1,943„272 

1,827,937 

559,867 

1,108,726 

282,775 

416,718 


4,548,256 


Cork, and mfrs of_. 


4,063,982 


Feathers __ 


4,401,154 


Opium 


3,088,126 


Licorice . 


1,140,541 


Ivory _ 




2,470,405 


Dyewoods and extracts 

Indigo 


1,337,093 
1,203,664 


913,465 
1,233,541 


Vanilla beans __ __^ 


1,523,156 


Sago, tapioca, etc 


388,621 


1,432,082 


Barks for quinine 


380,552 


Sponges 


86,483 


488,426 






Total __ 


$144,830,587 


$307,246,555 


$336,687,323 


$567,166,242 



a Only cane sugar not above No. 16 Dutch standard in color, and molasse*. 
b Includes articles from Hawaii and Porto Rico. 



Quantities of principal articles of tropical and subtropical growth 
imported from 1870 to 1907. 



Articles. 


Year ending June 30— 














1870. 


1880. 


1890. 


1900. 


1907. 


Sugar a_ -lbs. 


1,196,622,049 


1,829,286,030 


2,332,820,896 


3,305,087,796 


5,198,909,054 


Coffee — do. 


235,256,574 


446,850,727 


499,159,120 


787,991,911 


986,599,779 


Silk -do. 


583,589 


2,562,236 


5,943,360 


11,259,310 


18,743,904 


India rubber 












and gutta 

percha, lbs. 

Tobacco, leaf 

__ lbs. 


9,624,098 


16,826,099 


33,842,374 


58,506,569 


77,510,728 


6,256,5 10 


9,759,355 


28,720,674 


19,619,627 


42,341,300 


Cotton do. 


1,698,133 


3,547,702 


8.606.019 


67,398,521 


127,833,300 


Fibers tons. 


43,533 


111,751 


195,332 


249,306 


312,983 




3, 6 10, S 15 


7,403,i)!3 


18,266,177 


41,746,872 


92,249,819 


Olive oil gal. 


251,727 


3S3 , 1 :i 1 


893, 084 


007,702 


3,449,517 


Tea lbs. 


47,40S, 181 


72,102,936 


83,886,829 


84,845.107 


86,362,490 


Rico do. 


; 43,123,939 


57, 000, 255 


124, 020, 171 


116,679,891 


213,144,062 



a Cane sugar under No. 16 Dutch standard in color only; figures of 1907. 
include sugar from Hawaii and Porto Rico. + 



COLONIAL TRADE. 



441 



Trade of the United Kingdom with it* Colonies. 

The table which follows showing- the trade of the United 
Kingdom with its Colonies is suggestive and interesting, es- 
pecially in the showing which it presents as to the market which 
that country finds for its merchandise in the communities with 
which it has relations of this character. It will be noted that 
while the total exports of the United Kingdom have barely 
doubled in the period from 1869 to 190G, the exports to her colo- 
nies have nearly trebled during the same period and that the 
value of her merchandise sold in the colonies in that period 
aggregates 16 billions of dollars. 

Statement showing the total imports and exports of the United 
Kingdom, and the amount imported from and exports to her 
Colonies during the past thirty-eight years, 1869 to 1906. 



Y«ar. 



1869 
1870 
1871 

1872 

1873 

1874 

1875 

1876 

1877 

1S7S 

1879. 

1880 

1881 

1882 

1SS3. 

1884. 

1885 . 

1886 . 

1887 . 
1888. 
1889. 
1890 . 



181)2 
1393 

1891 
1895 
1KW 
1897 
1818 
1899 
1900 
1901 
1902 
1903 
1901 
1905 
1906 



Imports. 


Exports. 


Total imports. 


Imports from 
colonies. 


Total exports. 


Exports to 
colonies. 


$1,437,857,131 


$312,681,854 


$1,153,433,750 


$252,531,187 


1,475,802,590 


315,506,938 


1,187,818,128 


269,561,917 


1,610,886,833 


354,981,010 


1,380,016,2758 


270,389,037 


1,726,116,521 


386,267 J989 


1,530,946,581 


319,287,259 


1,806,869,996 


894,235,759 


1,513,604,689 


346,240,316 


1,801,007,465 


399,815,456 


1,448,515,983 


379,140,151 


1,819,776,951 


410,819,255 


1,370,466,870 


373,041,611 


1,825,690,362 


410,401,481 


1,219; 003, 331 


341,384,435 


1,949,4*3,383 


435,814,531 


1,228,011,903 


368,647,838 


1,794,622,816 


379,810,859 


1,191,617,195 


350,352,514 


1,766,499,960 


384,174,348 


1,210,701,211 


323,665,917 


2.001,218,678 


450,242,765 


1,308,885,999 


396,753,915 


1,932,109,943 


445,477,755 


1,445,753,321 


421,831,021 


2,009,959,922 


483,880,460 


1,492,361,365 


449,361,013 


2,077,467,869 


480,233,514 


1,486,109,501 


439,933,016 


L,S98j825,38d 


460,273,531 


1,4 W, 326, 242 


429,729,930 


1,805,315,553 


410,741,034 


1,321,129,720 


416,034,710 


i, 702 ,610", 686. 


39^,488,695 


1,308,891,227 


400,184,316 


1,762,780.410 


407, 806 ,'203 


1,308,765,830 


400,367,265 


1,886,429,313 


422,975,439 


1,153, 027, (503 


446,393,791 


2,081,098,356 


473,315,335 


1,585,831,773 


442,053,886 


2,047,297,603 


467,968,548 


1,597,438,932 


459,993,595 


2,119,074,911 


484,045,050 


1,504,301,909 


451,229,956 


2.032,392,927 


475,779,718 


1,419,266,863 


395.215,961 


1,969,415,018 


446,596,048 


1,348,893,391 


3S2,425,688 


1,987,210,018 


457,023,556 


1,332,378,922 


382,438,613 


2,027,820,221 


461,897,767 


1,391,003,109 


370,205,123 


2,150,063.031 


153,596,873 


1,422,329, 115 


441, 148, 230 


2,194,932,434 


157,586,162 


1,431,598,345 


423,212,102 


2,2S9,905,792 


484,815,112 


1,430. 8D. 072 


438, 


2,360.425.605 


519,881,701 


1,603,680,413 


45 -.005, 678 


2;545,545,281 


533,030,835 


1,724,559,874 


496,500,059 


2,540,265,299 


513,771,110 


1,692,881 . 160 


550,490,518 


2,571,416,135 


51 9, 708, 295 


1,699,570,518 


571 . 3 


2,640,561,306 


553,178,880 


1,753,75s, 175 


581,469,826 


2,681,629,483 


584,069,573 


1,805,515. 196 


587,792.88! 


2,719,669,426 


622,273,136 


1,983,568,499 


507.1S2.101 


2,958,289,385 


691,817,141 


2,241,888,602 


635.793.s7l 



Total exports of 
|16. 064 .0.55, 170. 



United Kingdom to colonies from 1869 to 1906, 



We are no more againnl organisation* of capital than 
against organizations of labor. We welcome both, demand- 
ing; only that eneh shall do rigrht and shall remember its 
duty to the Republic. — President Roosevelt at Milwaukee. 
Wis., April 3, 1003. 

Any i3 n just discrimination in the terms upon which tra im- 
portation of freight or passengera is afforded an individual 
or a locality pnrulyy.es and withers the business of the In- 
dividual or the locality exactly n« the binding; of tin* ar- 
teries and veins lending to a member of the human bod.v 
destroys its life.— Hon. Win. II. Intl. at < olumhus. Ohio. 



The course of the Republican party ila.ee its urbanization 
in 1850, and its real assumption of control In 1801, down 
to the present day. Is remarkable for the foresight nml 
ability of its leaders, for the discipline and solidarity o: 
its members, for its efficiency and deep sense of respon- 
sibility for the preservation and successful maintenance «>i 
the government, and for the r.rcntest resourcefulness I n 
meeting the various tryiiut ami difficult Issues vihlcli a 
history of now a full hnl f-cent u r> have presented for »o- 
lution. — Hon. Wm. II. Tuft, at Kansas City, Mo. 



RECENT TEMPORARY GOVERNMENT 
OF CUBA BY THE UNITED STATES 
AND ITS EFFECT ON THE CONDI- 
TIONS IN THE ISLAND. 



On May 20, 1902, the military government of Cuba, by order 
of President Roosevelt, issued in compliance with the promise 
made by the United States Congress in the Teller Resolution, 
transferred the government of Cuba to its newly elected Presi- 
dent and Congress. Under the presidency of McKinley, a 
brief war with Spain had secured Cuba's freedom from 
Spanish dominion. Three years of military administration had 
established order, constituted a government, placed the finances 
of the country on a sound basis, and the new Republic entered 
on its national life under the best auspices. But one circum- 
stance distinguished it, in its relation with the United States, 
from other Latin American Republics ; namely, the- existence 
of a law of the American Congress, known as the Piatt amend- 
ment, which had been adopted by the Cubans as a part of 
their constitution, and was later embodied in a permanent 
treaty between the two countries. According to the law and 
treaty, the Republic of Cuba undertook to enter into no com- 
pact with foreign powers which would tend to impair the inde- 
pendence of the Republic, to contract no public debt to the ser- 
vice of which it could not properly attend, to lease coaling sta- 
tions to the United States, and to execute and extend plans for 
the sanitation of the cities of the Island, and consented that the 
United States might exercise the right to intervene for the 
preservation of Cuban independence, the maintenance of a gov- 
ernment adequate for the protection of life, property, and indi- 
vidual liberty, and for discharging the obligations with re- 
spect to Cuba imposed by the Treaty of Paris on the United 
States which were now to be assumed and undertaken by the 
Government of Cuba. 

But while economically, with the assistance of the United 
States, the progress of Cuba was highly gratifying, in political 
matters, where the Cubans were left to themselves, the result 
was not so satisfactory. It was soon evident that political pas- 
sion was becoming more and more intense, and personal am- 
bition keener. To such an extent was partisanship carried in 
the Cuban Congress, that the minority party, availing them- 
selves of the provisions of the constitution which require the 
presence of two-thirds of the total membership of each branch 
to open sessions and of the omission of the constitution to 
provide means for compelling the attendance of absent mem- 
bers, remained away from the meetings of the Congress and 
prevented sessions except at irregular intervals. During the 
term of Congress lasting from April 4th to October 20th, 1904, 
a period of 199 days, the Lower House was, due to the obstructive 
tactics of the minority, able to hold but sixteen daily sessions 
and the Senate but twenty-six daily sessions; and a similar 
rcord of infrequent and irregular sessions continued throughout 
1905. 

For the administration of the executive departments no law 
whatever has been provided. The Cuban Congress, engrossed in 
its political squabbles, took no steps to remedy the situation 
beyond passing an electoral law, the defects of which made 
extraordinary fraud possible, and a skeleton provisional law. 
Those who had criticised the military government for promul- 
gating legislation instead of leaving all legislative matters for 
the action of the Cuban Congress, were effectively silenced. So 
barren of legislative results were the sessions of Congress, that 
in five years of the self -administered Republic only two annual 
budgets were passed; the three remaining budgets being pro- 

442 



OVR &OVERVMBXT OF CUBA. 4M 

vided, when Congress had failed to act, by the doubtful expedient 
of executive order. 

Another source of bitterness was the policy of the govern- 
ment, in the hands of the Moderate party, to dismiss the office- 
holders of the opposition party, the Liberals, and to reserve 
the positions in the public service for its own followers. Local 
pride was especially outraged b}' the action of the Moderate 
government in turning out the Liberal town councils, by illegal 
or technical interpretations of the irritating municipal law, and 
substituting Moderates. 

But what most exacerbated the strained relations between 
the political parties were the intimidation and colossal frauds 
practiced at the elections of 1905. The Liberals claimed that 
the Moderates used the rural guard and municipal police to in- • 
timidate the voters, that the assaults to which the Liberals were 
exposed were such as to make it dangerous for them to appear 
for registration, and they accordingly refrained from regis- 
tering, and withdrew from the elections. Nevertheless, the re- 
turns made by the Moderate election judges showed that 432,313 
persons had voluntarily appeared for registration. That the 
electoral lists had been padded to the degree of absurdity is 
made evident by the fact that the census of Cuba just completed 
shows that there are now in the Island only 419.342 persons of all 
parties entitled to vote. It is probable that 200,000 names were 
fraudulently inserted in the registration lists. 

Even during the elections there had been armed encounters 
between individual Moderates and Liberals. In Cienfuegos, an 
attempt made by the Moderate chief of police to arrest a Lib- 
eral congressman resulted in the death of both, and the gov- 
ernment was bitterly blamed. A few months later a post of 
the rural guard near Habana was attacked and several guards 
murdered while asleep, and prominent Liberals were charged 
with this deed. But it was not until August, 1906, that open 
revolt against the government began. On that date a small 
armed force took the field, and uprisings immediately followed 
throughout the country led by prominent leaders disaffected 
with the government. The ranks of the insurgents were aug- 
mented on account of the natural tendency to insurrection that 
had. been cultivated by a long period of insurrection in Cuba, 
as well as by the inclination of many to secure relief ■ from 
daily toil and live on the country and property of others. The 
power of this irregular force to do damage was incalculable. 
The greater part of the wealth of Cuba lies in its sugar plan- 
tations and sugar mills, most of which are owned by foreign 
capital, and the flaring of a few matches could in a short tin it- 
have destroyed property of this kind to che value of millions of 
dollars. 

The government of Cuba found itself entirely unprepared. 
Its artillery and rural guard force was comparatively small, 
and so scattered as to be unable to cope with the insurrec- 
tionists. The government made desperate efforts to organize 
militia, but with very unsatisfactory results. President Palma, 
in a letter to a friend a few weeks later, thus summarized the 
situation : • 

From the first days of the insurrectionary movement I understood 
the situation and was able to appreciate it with a serene mind. I saw 
before me numerous masses, tired or the order and legality to which tb j 
appeared to have submitted during the four years of the Republic, eager 
for license and forays, follow like a mob the first adventurer \*fco in- 
vited them to rise; I saw everywhere persons who sympathized with 
disorder and encouraged disturbances; I saw the press in the morning, 
afternoon, and at all hours, assisting with unparalleled cynicism th« 
secret conspiracy organized in behalf of the rebels; 1 suddenly found 
myself in the midst of a tremendous social disorganization, with thousands 
of insurgents in three provinces and the menace bf rebellion In two others, 
without sufficient regular forces to undertake immediately an active cam 
paign against the former and to beat ami disorganize them; at the sam< 
time I constantly feared that they would carrj I • the great sugar plan 
tations of Santa Clara the measures of destruction already realized on 
railroad stations, locomotives, bridges, culverts, etc.; 1 saw th 

ins fall off by one-half and the other income of the State to 26 
per cent., and that the millions of the Treasury were being spent In 
1 streams with uncertain result and to very doubtful advantage, a 
part being used for keeping up ha'-tlly improvised militia, which 
that very reason, could not Inspire sufficient confidence as to th( ; ' i.l:. 
For undertaking the labor, the privations, *vt\ the d 
persecution of adversaries, who were also Cubans and in a great m 
of cases friends and comrades. 



444 0*722 GOVERNMENT OF CUBA. 

The Appeal for Intervention by the United States. 

By the beginning of September the Cuban government realized 
the helplessness of its situation, and applied to the United States 
Government for American intervention ; and President Palma an- 
nounced his irrevocable intention to resign his office in order 
to save his country from complete anarchy. The American 
State Department did all in its power to discourage the request, 
bat the pleas of the Cuban government continued. On Sep- 
tember 14, 1906, President Roosevelt sent an official letter to 
Sehor Quesada, the Cuban Minister to Washington, in which he 
described the terrible disaster imminent in Cuba and the evils 
of anarchy into which civil war and revolutionary disturbances 
would assuredly throw her, and pointed out that the only way 
in which Cuban independence could be endangered was for 
the Cuban people to show their inability to continue in their path 
of peaceable and orderly progress, and that our intervention 
in Cuban affairs would come only if Cuba herself showed that 
she had fallen into the insurrectionary habit. He solemnly 
adjured all Cuban patriots to band together to sink all differ- 
ences and personal ambitions, and to rescue the Island from 
the anarchy of civil war. He said that, under the treaty with 
Cuba, as President of the United States he had a duty in the 
matter which he could not shirk ; that the 3rd article of the 
treaty explicitly conferred upon the United States the righ* 
to intervene for the maintenance in Cuba of a government, 
adequate for the protection of life, property, and individual 
liberty; that the treaty conferring the right was the supreme 
law of the land and furnished him with the right and means 
of fulfilling the obligation he was under to protect American 
interests; that his information showed that the social bonds 
throughout the Island had been so relaxed that life, property, 
and individual liberty were no longer safe; and that, in his 
judgment, it was imperative for the sake of Cuba that there 
should be immediate cessation of hostilities and some arrange- 
ment which would secure permanent pacification of the Island. 
He closed the letter by announcing that he would send to 
Habana the Secretary of War, Mr. Taf t, and the Assistant Sec- 
retary of State, Mr. Bacon, as special representatives of the 
American government, to render all possible aid toward secur- 
ing peace. 

The Peace Commission. 

Secretaries Taft and Bacon arrived in Habana September 19, 
1906. The task confronting them was extremely serious. Though 
there was no doubt that the American naval forces assembling 
in Habana harbor could in a short time disperse any large bodies 
of insurgents, it was quite evident that the employment of force 
would certainly give rise to guerilla warfare, which would have- 
caused an immense destruction of property, and cost much blood 
and money to suppress. 

The Peace Commission, constituted by Secretaries Taft and 
Bacon, gave hearing to prominent men of the Island, and had 
many conferences with the leaders of the different political 
parties, it received and considered suggestions for the settle- 
ment of the pending differences, and finally proposed a com- 
promise which it made earnest efforts to have accepted. The 
compromise contemplated the resignations of the Vice-Presi- 
dent, Senators, and Representatives, Governors, and Provisional 
Councilmen elected at the fraudulent elections of December 
1905; the laying down of the arms of the insurgents; the con- 
stitution of a commission for the purpose of drafting laws 
most urgently needed ; and the holding of elections under the 
provisions of the electoral law to be drafted by such com- 
mission. Their endeavors to have the plan accepted by all par- 
ties were without avail. The President insisted on resigning, 
all the cabinet officers resigned, and the President called a 
special session of Congress to submit his own resignation and 
that of the Vice-President. Pursuant to the call, Congress met 
September 28, received the resignations, and adjourned on the 
same day without electing a successor to the President. The 
country was thus left without a government, and President Palm«v 



OUR GOVERNMENT OF CUBA. 445 

so informed the Peace Commission, and stated that it was ne 
sary for him to turn over the national funds to some responsible 
person. Secretary Taft accordingly Issued the following proc- 
lamation establishing- the Provisional Government of Cuba: 

"To the People of Cuba : 

"The failure of Congress to act on the irrevocable resignation of 
the President of the Republic of Cuba, or to elect a successor, leaves 
this country without a government at a time when great disorder prevails, 
and requires that pursuant to a request of President Palma, the necessary- 
steps be taken in the name and by the authority of the President of 
the United States to restore order, protect life and property in the Island 
of Cuba and islands and keys adjacent thereto and for this purpose to 
establish therein a provisional government. 

"The Provisional Government hereby established by direction and in 
the name of the President of the United States will be maintained only 
long enough to restore order and peace and public confidence, and then 
to hold such elections as may be necessary to determine those persons 
upon whom the permanent government of the Republic should be devolved. 

"Insofar as is consistent with the nature of a provisional govern- 
ment established under authority of the United States, this will be a 
Cuban government conforming, as far as may be, to the Constitution of 
Cuba. The Cuban flag will be hoisted as usual over the government build- 
ings of the Island. All the executive departments and the provisional and 
municipal governments, including that of the City of Habana, will continue 
to be administered as under the Cuban Republic. The courts will continue 
to administer justice, and all laws not in their nature inapplicable by 
reason of the temporary and emergent character of the Government will 
be in force. 

"President Roosevelt has been most anxious to bring about peace 
under the constitutional government of Cuba, and has made every endeavor 
to avoid the present step. Longer delay, however, would be dangerous. 

"In view of the resignation of the Cabinet, until further notice the 
heads of all departments of the Central Government will report to me 
for instructions, including Major-General Alejandro Rodriguez, in com- 
mand of the Rural Guard and other regular Government forces, and Gen- 
eral Carlos Roloff, Treasurer of Cuba. 

'Until further notice, the Civil Governors and Alcaldes will also report 
to me for instructions. 

'I ask all citizens and residents of Cuba to assist in the work of 
restoring order, tranquillity and public confidence. 

"(Signed) "WM. H. TAFT, 

"Secretary of War of the United States, 

"Provisional Governor of Cuba". 

The general public satisfaction with this action is apparent 
from the fact that, though the government and the insurgents 
had thousands of men under arms, this simple decree was suffi- 
cient to establish the provisional administration, the only Ameri- 
can force landed being a small squad of marines to protect the 
Treasury. The important and delicate task of the disarmament 
of the insurgent forces and of the militia was then successfully 
carried into effect by commissions consisting' of American officers 
and prominent Cubans; and a general annuity was issued. The 
general attitude of the people of Habana toward the action of 
the Peace Commission was made evident when Secretaries Taft 
and Bacon embarked for the United States on October 13, 1900. 
The people of Habana forgot their political differences, and 
taking thought of the fact that the horrors of civil war had been 
averred, all parties joined in a demonstration of gratitude and 
praise for the work that had been accomplished. The shore 
of the bay was lined with thousands or' cheering people, all 
available water craft was pressed into service to escort the 
ships to the mouth of the harbor. Cue torts exohanged salutes 
with the vessels, and amid cheers and all possible display of 
goodwill the Peace Commission left Cuba. 'The character and 
extent of the service of Secretaries Taft and Bacon, ami the 

appreciation 1 hereof in Cuba, are Indicated in the resolution 

adopted by a mass meeting of I he American residents of Habana, 
as follows : 

"Gentlemen : 

"The American residents of Cuba, temporarily organised for the pur- 
pose of making known to you their situation and necessities in connection 
with the recenl disturbances, desire to express to you their high appre- 
ciation of tiie great services your wise and prudent measures havi 
eured t<> them and to all the people of Cuba. 

"The results you have accomplished are greater than could bav< 
ably been hoped for at the lime of your arrival. Nearly thirty 1 1 1 - 
armed men, moved by the mosi Intense apd bitter pa re then ar- 

rayed against the armed Torre ol the government and a disastrous conflict 
W as ii □ which enormous loss a f life and property would have been 

inevitable, it scarcely seemed possible that these angrj elements ol dis- 
cord and strife oould be brought into peaceful and orderly citizenship 



446 OUR GOVERNMENT OF CUBA. 

without bringing into active service the military power at your command 
to compel a cessation of the struggle for supremacy between the contend- 
ing forces. But in less than one month the wise and sagacious methods 
you pursued and the skill and adroitness with which you approached the 
difficult task committed to your .charge have brought peace and quiet to 
Cuba. Warlike conditions have vanished, with no immediate probability 
of their resumption. The armed forces have surrendered their arms and 
most of them are already in their fields and shops engaged in peaceful 
industry. 

"Not the least satisfactory of the considerations involved is the fact 
that in the settlement of the turbulent conditions that have prevailed, 
you have caused but little irritation or resentment, and have secured from 
the Cuban people increased respect and regard for the United States, and 
greater confidence and trust in the goodwill and wishes of the American 
people for the people of Cuba and their future welfare. 

"We do not believe that so successful and speedy an achievement 
under conditions so difficult and dangerous has any parallel, and the 
thanks and gratitude of the people of Cuba, as well as of the great 
people you represent, are due to you for these inestimable services. 

"Wishing you a safe return to the United States and the enjoyment 
of higher honors in the future, we are, 
Very sincerely yours, 

"S. S. HARVEY, 

"H. E. HAVENS, 

"WM. HUGHES, 

"H. W. BAKER, 

"DR. C. CLIFFORD RYDER, 

"ALFRED LISCOMB, 

"W. ROBERTS, 

"WM. B HINE, 

"J. E. BARLOW, 

"CHAS. HASBROOK, 

"Committee." 

Upon Secretary Taft's leaving the office of Provisional Gov- 
ernor, President Roosevelt ai^pointed in his place the Hon. Charles 
E. Magoon, who had shortly before retired from the position 
01 Governor of the Canal Zone and the American Minister to 
Panama, in which post he had successfully carried out the diffi- 
cult task of organizing the Canal Zone Government, and had 
e ^oblished friendly relations with the Republic of Panama. To 
assist him, officers of the United States Army were appointed 
advisers to the acting secretaries of the Cuban executive de- 
partments. 

Governor Magoon's Administration. 

Governor Magoon's administration has been one the bene- 
fits of which will endure for generations in Cuba. Its most 
lasting monument and the most grateful to the poor farmer 
of the country will be the network of roads constructed under 
American supervision. Cuba is dependent upon its agriculture 
for the production of wealth, and has been subjected to great 
economic waste by reason of lack and cost of inland trans- 
portation. The products of Cuba are hauled to market over 
trails that are barely passable during* the dry season and abso- 
lutely impassable during the rainy season. In many localities 
it is impossible to transport the products in wagons or carts 
and necessary to pack them on horses or mules. Where carts 
can be used, it is necessary to employ from four to ten oxen, 
horses or mules, where two would be sufficient if good roads 
existed. Days are spent in hauling a load to market where 
hours would be sufficient if the roads were good. Realizing 
the necessities of the situation, the provisional government has 
given its best efforts to supplying the remedy. A comprehen- 
sive plan of road improvement was adopted ; and in all parts 
of the Island trunk roads and local roads have been constructed 
and are now under construction, to the amazement and delight 
of the agriculturist, who has never seen his needs given such 
attention. On September 29, 1906, when the provisional gov- 
ernment began, there were but 366 miles of macadamized high- 
way in Cuba, many of which had been constructed under the 
American military government. On May 1, 1908, the, mileage had 
been increased by the provisional administration to 573 miles and 
there were 457 miles of road under construction, most of which 
will be completed by the end of the current year. 

Other public works have been provided in all parts of the 
Island. Harbors have been dredged, lighthouses built, hospitals, 
asylir.ns, courthouses and other public buildings erected and 
repaired, bridges provided, and waterworks furnished the prin- 



OUR GOVERNMENT OF CUBA. 44T 

cipal towns. All these important works, as well as the road- 
work, have been paid for out of current funds. 

Careful attention has also been given to the legislative needs 
of the Island. It was a commentary on the necessity for legis- 
lation that nearly all the bases of settlement between the 
warring factions, proposed during the period of deliberation 
which led up to the establishment of the provisional government, 
incorporated more or less urgent demands for legislation, and 
particularly for legislation under the constitution affecting mu- 
nicipal and judicial administration. • To meet this demand for 
legislative action, and in pursuance of the plan of the Peace 
Commission, an advisory commission was created, composed oi' 
twelve members, nine of whom were prominent Cubans, all 
political parties being represented, and three Americans, who 
had had experience with Spanish law. The commission on or- 
ganizing was charged with the drafting of five laws: An 
electoral law. a municipal law, a provincial law, a judiciary 
law, and a civil service law. To these have since been added 
a law organizing the armed forces, a military code, a law or- 
ganizing the national executive departments, a general telephone 
law, a notarial law, and the revision of portions of the mort- 
gage law. Numerous minor decrees have also been reported by * 
the commission, and the lack of adequate legislation at present 
obliged the commission to draft a municipal accounting law and 
a municipal tax law in connection with the organic muni- 
cipal law. The work of the Advisory Law Commission is thus 
a work of organization of practically ever3 r fundamental branch 
of the Cuban Government. The law of the executive departments, 
together with the civil service law, will reorganize the execu- 
tive power of the national government; the organic municipal 
law and the laws of municipal accounting and municipal tax- 
ation will afford to the municipalities a government in harmony 
with the constitution ; the electoral law is applicable to offices 
national, provisional, and municipal ; the judiciary law organizes 
the courts and provides for the independence of the judiciary ; 
while the law of armed forces and the military code organize the 
military establishment of the Eepublic. Of these laws, the elec- 
toral law and the law of armed forces, as well as numerous 
minor decrees reported by the commission, have been promul- 
gated by the Provisional Governor. Drafts of the provincial 
and municipal laws have also been reported and approved. In 
all of these cases the proposed laws have been printed and 
distributed for public criticism prior to promulgation. Most 
of the laws drafted by the commission will be promulgated by 
the Provisional Governor, and the remainder will be submitted 
for action to the Cuban Congress. 

In addition, a commission has been convened, constituted 
by prominent Cuban judges and lawyers, for the revision of 
the harsh and antiquated penal code and the code of criminal 
procedure. 

Much attention has been given to the matter of sanitation. 
which, in Cuba, is not only of vital importance to the health of 
the inhabitants but has also a direct bearing upon the develop- 
ment and commerce of the country, for vessels will not seek- to en- 
ter a port of the Island if all other ports of the world are quar- 
antined against Cuba. The matter is also one of serious moment 
to the people and the commerce of the Southern Slates of 
the United States. The dreaded yellow fever had been stamped 
out in Cuba during the American military government, i >u t 
has reappeared. Indefatigable work on the part of the pro- 
visional administration has again suppressed Lt. In view of the 
special importance of sanitation in Cuba, a law has hern pro- 
mulgated which nationalizes the sanitary service of the rsland, 
and provides a national board of sanitation charged with the 
responsibility of securing proper sanitation throughout the Island 
and invested with the authority necessary for obtaining thai 
result. 

Public order has been kept perfectly, and at no time for a 
century has the Island been as quiet and as free from marauding 
bands as under the American Provisional Administration. I'he 
presence in the Island of an American Annj detachment, 
Bering about 5.000 men, and known as t he Annv of Cuban 



448 01712 GOVERNMENT OF CUBA. 

Pacification, has assisted in great measure in renewing confi- 
dence. The rural guard, which had been used as a political 
agency, has been reorganized by American Army officers and 
restored to its original efficiency. For the purpose of enabling 
the new Cuban government to maintain itself, a decree has been 
issued providing for the organization of the armed forces. Under 
this decree the method of calling the militia into service is 
regulated, and provisions are made for the establishment of a 
permanent army, which is now being organized. 

It fell to the provisional government to pay practically the 
entire cost of the uprising of 1906, as well as the debts incurred 
by the Cuban government, when it was struggling with the in- 
surrectionists, as the damage caused by the revolutionary forces. 
Such payments have, up to the present time, amounted to over 
$9,000,000. As a consequence of the revolution, about 15,000 
claims for damages were filed by Cubans and aliens, the total 
amount claimed exceeding $4,000,000. A commission of Ameri- 
can officers and Cubans have investigated and reported on every 
claim, and recommended payments to the amount of $1,390,088.39, 
all of which have been made, except in a few cases that are being 
reconsidered on appeal. 

Many long pending questions, which had troubled the Cuban 
authorities for years, have also been settled. A question be- 
tween the State and the Catholic Church, involving the pur- 
chase of property owned by the Church in Habana and used by 
the State, has been satisfactorily settled and the purchase car- 
ried out. A water famine in the outskirts of Habana has been 
remedied by the acquirement in behalf of the municipality and 
under excellent conditions of a water concession, on account 
of which the city and national government had been engaged 
in costly litigation for years, while the public suffered from 
lack of water. A decree has been issued to facilitate the de- 
marcation of large unsurveyed estates held in common in the 
eastern part of the Island, the division of which has for a 
century been regarded as necessary for the public interests. Other 
decrees have served to clear up doubts arising in the interpre- 
tation of customs tariffs, and have simplified the manner of 
drafting manifests, as well as the customs regulations for the 
entry and clearance of vessels. Still other decrees have been 
promulgated for the settlement of minor difficulties which had 
arisen under the present laws. 

A remarkable feature of the provisional administration has 
been the satisfaction and content with which its acts have been 
received by the Cuban people, and the cordiality existing be- 
tween the American government officials and all political par- 
ties, as well as the commercial and industrial bodies of Cuba. 
This state of public sentiment is all the more gratifying in 
view of the previous bitterness between the political parties, 
and of the difficulties and embarrassments with which the pro- 
visional administration has had to contend by reason of long 
periods of drought, labor strikes, and business depression, which 
have affected the agricultural and commercial interests. All 
classes have perfect confidence in the American government, and 
realize that their welfare is the object of constant solicitude 
and effort. 

Preparation for Restoration of Cuban Government, 

In the meantime, the work of preparation for the return 
of the government to the Cubans has gone on as rapidly as 
circumstances would permit. Soon after the advisory commis- 
sion began to consider the electoral law the opinion was ex- 
pressed in the commission, as well as in the public press, that 
a census of the Island should be taken in order to secure a 
reliable basis for the electoral lists, and that the local elections 
be held before the national elections in order that they might 
serve as a test of the electoral law. Secretary Taft again visited 
Cuba in April, 1907, and among other matters which received 
his attention was that deciding upon the fate of the forth- 
coming elections. As a result of his conference with the national 
committees of the various political parties, and with other rep- 
resentative bodies, he announced that a census of the Island 



OUR GOVERNMENT OF CUBA. 441 

should be taken in as short a time as was consistent with 
making- it thorough, fair, and complete for electoral purposes, 
that the municipal and provincial elections would be field as 
soon as practicable after the termination of the census, that 
within six months after these local elections the national elec- 
tions would be held, and that as soon as the president 
and senators were designated by the presidential and sena- 
torial electoral colleges the government would be devolved upon 
the Cubans. On January 14th of this year. President Roosevelt, 
in transmitting to Congress the report of the Provisional Gov- 
ernor for 1906-07, ordered that the provisional administration 
end not later than February 1, 1909. In pursuance of the 
plan laid out by Secretary Taft, a careful census of the Island 
has been taken under the direction of an official of the United 
States Census Department. The election boards provided for 
by the new electoral law have been constituted, and it is ex- 
pected to hold the local elections in July of this year, and the 
national election in the fall; whereupon, in compliance with 
President Eoosevelt's order, the government of the Island will 
devolve upon the officials designated as a result of such election, 
not later than February 1, 1909. 



The empire that shifted from the Mediterranean will in 
the lifetime of those now children hid fair to shift once more 
westward to the Pacific. — President Roosevelt at San Fran- 
cisco, Cal., May 13, 1903. 

The contention that we are not a nation with power to 
govern a conquered or purchased territory, robs us of a 
faculty most important for good to every sovereignty. — Hon. 
Wm. H. Taft, at Cleveland, Ohio. • 

It is no longer a Question of expansion with us; we have 
expanded. If there is any question at all it is a quest ioja of 
contraction; and -who is going to contract? — President Mc- 
Kinley at Iowa Falls. Iowa, Oct. 16, 1899. 

It is a good lesson for nations and individuals to learn 
never to hit if it can he helped, and then never to hit softly. 
1 think it is getting to be fairly understood that that is our 
foreign policy. — President Roosevelt at San Francisco, Cal., 
May 13, 1903. 

The policy of expansion is what distinguishes the admin- 
istration of McKlnley and adds another to the list of patri- 
otic victories of the Republican party. By this policy the 
United States has become a world power.— Hon. Wm. H. Taft, 
at Kansas City, Mo. 

The construction of the canal is now an assured fact; but 
most certainly it is unwise to intrust the carrying out of so 
momentous a policy to those who have endeavored to defeat 
the whole undertaking.— President Roosevelt's speech accept- 
ing 1904 nomination. 

The guns that thundered off Manila and Santiago left ns 
echoes of glory, but they also left us a legacy of duty. If 
we drove out a mediaeval tyranny only to make room for 
savage anarchy, we had better not have begun the task at 
all.— President Roosevelt in The Strenuous Life, p. 11. 

When we legislate for Alaska we are acting within the 
clearly granted authority of the Constitution, and when we 
legislate for the Philippines we are likewise within the 
scope and plain purpose of the Constitution.— Hon. (. W. 
Fairbanks, In V. S. Senate, February 22. 100ft 

For years the commerce of the world has demanded mi 
isthmian canal, and recent events give us the assurance that 
this vast undertaking will be accomplished at an earls 
day under the protection of the American ting.— Hon. < . 
W. Fairbanks, at St. Paul. Minn.. August 81, 1903. 

f We are the trustees and guardians of the whole Filipino 

people, and peculiarly of the ignorant masses. nn.l our trust 
ts not discharged until tln.se musses are given education 
sufficient to know their civil rights and maintain them 
against a more powerful eluss and safely to exercise »« 
political franchlse.-Hon. Wm, B. Taft. in special report to 
the President. 

One vital, dominating fnet confronts the Democrat It 
IlllvJv which no oratorv, which no eloquence, which UO 
rhetoric can obscure: BRYAN'S NOMINATION MKANS TAI 1 1 
ELKCTION.— New York World. 



MERCHANT MARINE. 



During the past twelve years of Republican control American 
ship-building- has made steady growth in tonnage and improve- 
ment in design. The closing fiscal year of President Koosevelt's 
administration is the banner ship-building year in American his- 
tory. Up to June 20, 1908, the output was 590,231 gross tons 
(the highest record in any earlier year was 583,450 gross tons), 
and the few remaining days of the fiscal year will bring the 
aggregate up to 600,000 tons. Of this large output, however, no 
vessels were built exclusively for the foreign trade. Were it 
not for the coasting trade policy, which reserves to American 
vessels exclusively the transportation of freight and passengers 
between American ports, doubtless domestic shipyards would 
have almost entirely disappeared from our seaboard, and even 
our war vessels would have been built abroad, or if at home, at 
an enormous increase in cost. Every industrial factor and every 
act of Congress which tends to promote shipbuilding for mer- 
cantile purposes at the same time renders the United States 
more capable of producing its own war vessels, and such legis- 
lation accordingly contributes to national defense. For this 
reason, if for no other, the Republican policy of promoting ship- 
building at home is entitled to the support of every patriotic 
citizen. 

The following table shows the total merchant tonnage (gross 
register tons) under the American flag, divided according to 
the trade in which engaged, on June 30 of each year named, and 
also the gain or loss for each period of four fiscal years, cover- 
ing the four latest national administrations : 

Total American merchant shipping. 



On June 80-^ 


Foreign 
trade. 


Coasting 
trade. 


Sea 
fisheries. 


Total. 


1892 

1896 


977,624 
829,833 
816,795 
888,628 
861,446 


3,700,773 
3,790,296 
4,286,516 
5.335,164 
6,010,658 


86,524 
83,751 
61,528 
67,743 
66,670 


4,764,921 
4,703,880 


1900 


5,164,839 


1904 - 

1907 ... _ 


6,291,535 
6,938,794 







Gain or ] 


oss in four years. 








Foreign 
trade. 


Coasting 
trade. 


Sea 

fisheries. 


Total. 


1893-1896 — 


—147,791 

— 13,038 
71,833 

— 27,182 


89,523 

496,220 

1,0*8,648 

675,494 


— 2,773 
—22,223 

6,215 

— 1,073 


—61,041 


1897 1900 . 


460, 959 


1901-1904 


1,236,696 


1905-1907* 


♦647,929 







*Gain or loss in three years. The returns lor June 30, 1908, not yet com- 
pleted, will show a total increase during the four years of over 1,100,000 gross 
tons. 

American tonnage built during recent periods of four fiscal 
years, beginning June 30th: 

Gross register 
tons. 

1893-1896, inclusive 681,532 

1897-1900, inclusive 1,106,518 

1 901-1904, inclusive 1,767,014 

<r 1905-1908, inclusive 1,811,624 

In 1896 the production of steel vessels in the United States 
amounted to only 96.331 gross tons; by 1908 it had increased to 
425,000 gross tons. Two-thirds of the merchant tonnage of all 

450 



MERCHANT MARINE. 451 

types under the American flag on the sea, on the lakes and the 
rivers of the United States were built during the administra- 
tions of Presidents Mclvinley and Roosevelt. In 1906 115,500 men 
employed on American steam vessels, valued at $386,773,000. were 
paid $61,265,000 in wages. 

In 1905 50,750 workmen in American shipyards were paid 
$29,241,000 in wages. 

Legislation for Seamen. 

The Republican Party in control of Congress and the execu- 
tive departments has steadily endeavored to improve the con- 
ditions of American labor at sea as well as American 
labor on the land. At the late session Congress, by the act of 
April 2, 1908, for the first time provided for Government deter- 
mination of the numbers of the crew of every steam vessel, pas- 
senger or freight, thereby providing also for the fixing of hours 
of labor. It also passed an act for the regulation of seagoing 
barges, the most dangerous form of navigation on our coasts, 
and thus both gave better protection to the crews on such vessels 
and at the same time took steps to reduce a serious menace to 
navigation along our coasts. 

More rigid inspections at home and abroad of the seaworthi- 
ness of vessels have been prescribed by Congress and the Ad- 
ministration. As long ago as 1898 a compulsory scale of pro- 
visions for seamen on American vessels was fixed by law very 
much superior in the quantity and quality of the food furnished 
to seamen on other vessels. Indeed, the standard of living on 
American ships thus provided has already led other nations to 
legislate in the same direction, thus improving the conditions 
of labor at sea generally. The same act of December 21, 1898, 
provided for the prompter payment of wages, already much 
higher on American than on foreign ships, and for the return of 
wrecked, sick or injured American seamen from abroad, or from 
Alaska, Porto Eico, Hawaii, the Philippines and the Canal Zone, 
at the expense of the Federal Government. Forecastle quarters 
on American ships are now equal to any on foreign ships and 
superior to most. Warm rooms are provided in cold weather. 

The penalty of imprisonment for the seaman's breach of a 
civil contract has been abolished and all forms of corporal 
punishment prohibited by heavy penalties. Prompt trials of cases 
in which a seaman is a party are now required by law. 

Legislative enactment and administrative effort have been 
directed successfully against the crimping system by which sea- 
men have been cheated of their wages. Abuses under the sj's- 
tem of allotment of wages have been reduced to a minimum, and 
"shanghaiing" on American vessels has practically ceased since 
the acts of 1906 and 1907. Under these several acts the Federal 
courts have inflicted heavy penalties on those engaged in de- 
frauding seamen. Of the act of 1898 the Supreme Court has 
said : 

"The story of the wrongs clone to sailors in the larger ports, not 
merely of this nation but of the world, is an oft-told tale, and many 
have been the efforts to protect them against such wrongs. One of the 
most common means of doing these wrongs is the advancement oi 
Bad men lure them into haunts of vice, advan.ee a little money to con 
tinue their dissipation, and having thus acquired a partial control and 
by liquor dulled their faculties, place them on board the vessel Just 
ready to sail and most ready to return the advances. When ,. 
i shipboard and the ship at sea, the sailor is powerlei relief 

| is availing. It was in order to Stop this evil, to protect the sailor, ami 
I not to restrict him of his liberty, that this statute was | 
1 while in some cases it may operate harshly, no one can doubt tl 

best interests of the seaman as a class arc preserved )^y such legislation." 

The wages of seamen on American vessels are much higher 

| than on foreign vessels. Thus the average monthly wages paid 

at Bremen, the groat German seaport, are $16, and at Livi 

$18 for seamen and $20 for firemen. \t v u York seamen on 

American vessels are paid $25 and firemen $35 to $40. \n., 

engineers and mates arc paid double the corresponding British 

wages. The American S. S. "St. Louis" ( ' L,62 baa a 

1 monthly pav roll of $11,300 tor 380 men; the British S. S. 

■ "Oceanic" (17,274 gross tons) pays $9,891 bo 131 men, and the 

German S. S. "Kaiser YYilhelm der Grosse" I •■ tons) 



458 MERCHANT MARINE. 

pays monthly only $7,715 to 500 men. Thus indirectly the 
American system, which contributes toward higher wagv/s in 
American industries on shore, causes also higher wag«is on ship- 
board. 

The Shipping' Question, 

In volume, merchant shipping under the American flag is 
surpassed only by merchant shipping under the British flag. Tu 
its types and uses, however, our shipping differs radically 
from the shipping of other maritime nations. It is almost wholly 
devoted to domestic transportation, and relatively is far below 
our strength as a naval power. 

By comparison with our rank in any other of the great 
divisions of industrial and commercial endeavor, the position of 
the United States as an ocean-carrying power is insignificant. It 
is humble by comparison with the commercial sea power of other 
leading nations, with which in nearly every other respect we are 
classed. Even in the discharge of ordinary functions of govern- 
ment we have put ourselves under the protection of foreign flags. 
Over a year ago it became necessary to dispatch a small force of 
American troops to Cuba ; they were sent under the British 
flag. Not one American steamship of any kind now 7 runs to Bra- 
zil, or Argentina, or Chile, or Peru. An American mail service to 
those southern countries is absolutely nonexistent. Not one 
American steamship now runs from either our Atlantic or our 
Pacific coast to Australasia. 

In the performance of its plain duties the Federal Government 
has to resort to foreign agencies and foreign protection. There is 
not to-day another first-class power in a similar position. There 
is not another which, if it found itself in that position, would 
allow such conditions to continue longer than until by sufficient 
expenditure they could be corrected in the shortest possible 
time. Such expenditures would be as clearly for public purposes 
as appropriations for the Army, the Navy, the Panama Canal, or 
the postal system. 

From the messages of their Presidents and the reports of 
their heads of Departments for many years past the American 
people have become familiar with the trifling share of American 
vessels in our own foreign carrying trade and with the fact that 
an American steamship is almost never seen in the world's sea- 
ports outside of the Caribbean and the Gulf of Mexico. Last 
year, for example, only 10.6 per cent, of our combined exports and 
imports were carried in American ships ; our vessels registered 
for foreign trade aggregated only 871,146 gross tons, a fleet 
equaled in tonnage and greatly exceeded in efficiency by the 
fleet of one foreign shipping corporation, while any one of seve- 
ral foreign corporations owns more ocean-going steam ton- 
nage than the entire amount of such tonnage registered under 
the American flag. 

McKinley, Roosevelt, and Taft on Shipping. 

The best means of restoring the American merchant marine 
to .its former prominence in foreign trade has been the subject of 
careful investigation by the leading men of the Eepublican party 
during the past twelve years. In his annual message of December 
3, 1900, President McKinley said: 

Foreign ships should carry the least, not the greatest part of Ameri- 
can trade. The remarkable growth of the steel industries, the progress 
of shipbuilding for the domestic trade, and our steadily maintained ex- 
penditures for the Navy have created an opportunity to place the United 
States in the first rank of commercial maritime powers. 

Besides realizing a proper national aspiration this will mean the 
establishment and a healthy growth along all our coasts of a distinctive 
national industry, expanding the field for the profitable employment of 
iahor and capital. It will increase the transportation facilities and reduce 
freight charges on the vast volume of products brought from the interior 
to the seaboard for export, and will strengthen an arm of the national 
dpfense upon which the founders of the Government and their successors 
have relied 

Every constructive measure on the subject brought before 
Congress has been Eepublican in origin and principle, and has 
encountered unbroken Democratic obstruction, save in one in- 
sta'lice when a Democratic- Senator and two Democratic Repre- 
sentatives patriotically joined w-ih the majority. It is thus a 



MERCHANT MARINE. 468 

moral certainty that, as in most other matters, no constructive 
legislation to advance our maritime interests is to be expected 
from a Democratic administration or a Democratic House of 
Representatives. B 

In his first annual report as Secretary of Commerce and 
Labor, in 1903, Secretary Cortelyou recommended the appoint- 
ment of a Merchant Marine Commission, and President Roose- 
velt in his message to Congress the same year strongly urged 
the appointment of such a Commission. Accordingly, Congress, 
in the early part of 1904. created a Merchant Marine Commission 
of five Senators and live Representatives, who made an exhaustive 
investigation into shipping. As a result of this investigation after 
favorable action in the Senate the Republican majority in the 
House also passed on March 1. 1907. a bill providing- for increased 
American ocean mail facilities which incidentally would have 
benefited American shipbuilding with its almost infinite subsidi- 
ary interests, would have improved our means of ocean trans- 
portation, and would have developed a merchant fleet auxiliary 
;o the Navy. By the usual Democratic tactics this bill was fili- 
bustered to death on March 3 and 4, 1907, in the Senate by two 
Democratic Senators who had been recently rejected by their 
own States. 

At the session of Congress just closed the Senate passed a 
bill to improve our mail service with South America, the Philip- 
pines. Asia and Australia in exact accord with the recommenda- 
tion and argument in President Roosevelt's message of December 
3. 1907. That bill is now pending in the House Committee on 
Post-Offices and Post-Roads and will be considered at the next 
session of Congress. The bill was also passed by the Senate as 
part of the Post-Office Appropriation bill, but in this shape lacked 
eight votes of approval by the House. President Ro#serelt's 
recommendation and argument of December 3, 1907, follows : 

The time has come, in my judgment, to set to work seriously to make 
our ocean mail service correspond more closely with our recent commercial 
and political development. A beginning was made by the ocean mail act 
of March 31. 1891, but even at that time the act was known to be in- 
tte in various particulars. Since that time events have moved 
rapidly in our history. We have acquired Hawaii, the Philippines, and 
lesser islands in the Pacific. We are steadily prosecuting the great work 
of uniting at the Isthmus the waters of the Atlantic and the Pacific. To 
a greater extent than seemed probable even a dozen years ago, we may 
look to ar. American future on the sea worthy of the traditions of the 
As the first step in that direction, and the step most feasible at 
the present time, I recommend the extension of the ocean mail act of 1891. 
That act has stood for some years free from successful criticism of its 
principle and purpose. It was based on theories of the obligations of a 
great maritime nation, undisputed in our own land and followed by other 
nation since the beginning of steam navigation. Briefly those theories 
are. that it is the duty of a first-class power so far as practicable, 
to carry its ocean mails Under its own flag ; that the fast ocean steam- 
ships and their crews, required for such mail service, are valuable aux- 
iliaries to (he sea power of a nation. Furthermore, the construction of 
such steamships insures the maintenance in an efficient condition of the 
shipyards in which our battleships must be built. 

The expenditure of public money for the performance of such neces- 
sary functions of government is certainly warranted, nor is it m . 
to "dwell upon the incidental benefits of our foreign commerce, to the 
shipbuilding industry, and to ship owning and navigation which will ao- 
company the discharge of these urgent public duties, though they, too. 
should have weight. 

In an address before the Chamber of Commerce of Trenton. 
New Jersey, on March 23. 1908, Secretary Taft said: 

I cannot understand any difference in principle between government 
assistance to our merchant marine and our protective tariff system, our 
m of improvement of internal waterways, or any other method by 
which the general welfare is promoted through the government's 

of particular industries, in which all may engage. Let us hope that 
the mail subsidy bill will lead to the establishment of direct lines between 
Xew York on the one hand, ami between 

Philippines on the other, and that it may 
be the means of pointing out how a wid. witenance »t tho 

marine may be inaugurated in the public int. i 

ling from I i build a 

canal across the Isthmus of Panama. Can it be that this 
be built solely for vessels of other countries than the United • 
it true that tlie flag of the United States will fly over but ' 
passing through this gr< I ■ : ' The work on tb< 

,gon, The i the rate now of upward ol I • 

million cubic yards a month. We have every hope thai from 

next July our battle fleel maj be able to ;> cend thro-. cks u, 

the new-made lake and I 
to the sc;,. Ought we not in the six years which ; - 

imr- 
obant marine I ' '« »uui of money on 

commercial as well us naval and war strategic grounds T 



464 MERCHANT MARINE. 

Trade with South America. 
Secretary Koot, after his visit to South America and Mexico, 
which opened a new era of Pan-American comity, bringing us 
in closer touch with our sister American Republics, said at the 
Trans-Mississippi Commercial Congress at Kansas City, on No- 
vember 20, 1906 : 

It is absolutely essential that the means of communication between 
North and South America should be improved and increased. 

This underlies all other considerations and it applies both to the 
mail, the passenger, and the freight services. Between all the principal 
South American ports and England, Germany, France, Spain, Italy, lines 
of swift and commodious steamers ply regularly. There are five sub- 
sidized first-class mail and passenger lines plying between Buenos Ayres 
and Europe ; there is no such line between Buenos Ayres and the United 
States. jNo American steamships run to any South American port beyond 
the Caribbean. 

The mails between South America and Europe are swift, regular, and 
certain ; between South America and the United States they are slow, ir- 
regular, and uncertain. Six weeks is not an uncommon time for a letter 
to take between Buenos Ayres or Valparaiso and New York. The mer- 
chant who wishes to order American goods cannot know when his order 
will be received or when it will be filled. The freight charges between 
the South American cities and American cities are generally and sub- 
stantially higher than between the same cities and Europe. At many 
points the delivery of freight is uncertain and its condition upon arrival 
doubtful. The passenger accommodations are such as to make a journey 
to the United States a trial to be endured, and a journey to Europe a 
pleasure to be enjoyed. The best way to travel between the United States 
and both the west and the east coast of South America is to go by way 
of Europe, crossing the Atlantic twice. It is impossible that trade should 
prosper or intercourse increase or mutual knowledge grow to any great 
degree under such circumstances. 

We are a nation of maritime traditions and facility ; we are a nation 
of constructive capacity, competent to build ships ; we are eminent if not 
pre-eminent, in the construction of machinery ; we have abundant capital 
seeking investment ; we have courage and enterprise shrinking from no 
competition in any field which we choose to enter. Why, then, have we 
retired from this field in which we were once conspiciously successful? 

I think the answer is twofold : 

1. The higher wages and the greater cost of maintenance of American 
officers and crews make it impossible to compete on equal terms with 
foreign ships. The scale of living and the scale of pay of American 
sailors are fixed by the standard of wages and of living in the United 
States, and those are maintained at a high level by the protective tariff 
The moment the American passes the limits of his country and engages 
in ocean transportation he comes into competition with the lower foreign 
scale of wages and living. 

2. The principal maritime nations of the world, anxious to develop 
their trade, to promote their shipbuilding industry, to have at hand trans- 
ports and auxiliary cruisers in case of war, are fostering their steamship 
lines by the payment of subsidies. England is paying to her steamship 
lines between six and seven million dollars a year. It is estimated that 
since 1840 she has paid to them between two hundred and fifty and three 
hundred millions. The enormous development of her commerce, her pre- 
ponderant share of the carrying trade of the world, and her shipyards 
crowded with construction orders from every part of the earth indicate 
the success of her policy. 

Against these advantages to his competitor the American shipowner 
has to contend ; and it is manifest that the subsidized ship can afford to 
carry freight at cost for a long period to drive him out of business. 

Plainly these disadvantages created by governmental action can be 
neutralized only by governmental action, and should be neutralized by 
such action. 

What action ought our Government take for the accomplishment of 
this just purpose ? Three kinds of action have been advocated : 

1. A law providing for free ships — that is, permitting Americans to 
buy ships in other countries and bring them under the American flag. 

2. It has been proposed to establish a discriminating tariff duty in 
favor of goods imported in American ships— that is to say, to impose higher 
duties upon goods imported in foreign ships than are imposed on goods 
imported in American ships. We tried that once many years ago and have ' 
abandoned it. In its place we have entered into treaties of commerce 
and navigation with the principal countries of the world, expressly 
agreeing that no such discrimination shall be made between their vessels 
and ours. To sweep away all those treaties and enter upon a war of com- 
mercial retaliation and reprisal for the sake of accomplishing indirectly 
what can be done directly should not be seriously considered. 

3. There remains the third and obvious method — of neutralizing the 
artificial disadvantages imposed upon American shipping through the action 
df our own Government and foreign governments by an equivalent ad- 
vantage in the form of subsidy or subvention. In my opinion this is what 
should be done ; it is the sensible and fair thing to do. It is what must 
be done if we would have a revival of our shipping and the desired 
development of our foreign trade. We cannot repeal the protective tariff ; 
no political party dreams of repealing it ; we do not wish to lower the 
standard of American living or American wages. We should give back 
to the shipowner what we take away from him for the purpose of main- 
taining that standard; and unless we do give it back we shall continue 
to go without ships. 

Such subventions should not be gifts. They would be at once com- 
pensation for injuries inflicted upon American shipping by American laws 
and the consideration for benefits received by the whole American people — 
not the shippers or the shipbuilders or the RailiT"' «i-vn« T - •-♦ 
manufacturer, every miner, every farmer, every merchant whose prosperity 
depends upon a market for ale produote. 



MERCHANT MARINE. 455 

Foreign Steamship Trusts. 

The trust question has been uppermost in the minds of the 
American people during the past few years. An American trust 
can be dealt with through the instrumentality of American laws, 
but a foreign trust is beyond our reach. That the commerce of 
South America is dominated by a foreign steamship trust is well 
known — a trust that can give rebates at pleasure, and that 
can and does lower and increase prices according to circum- 
stances. So far as steamships are concerned this important 
American trade is now, and for several years lias been, monopo- 
lized by a foreign shipping trust or combination, whose weapons 
are rebates, discriminations, and boycotting, and whose policies 
are dictated from Liverpool and Hamburg. 

Mr. Anderson, the present consul-general at Rio de Janeiro, 
says of the foreign steamship combination : 

Merchants complain that the high freight rates obtaining on gooda 
from the United States to Brazil generally continue to act as a deter- 
rent to trade in general. The conference rates (the conference is the 
European steamship trust) on goods from the United States to this 
part of South America are nearly twice as high as freight rates from 
Asiatic ports to the United States. 

Ambassador Griscom, at Rio de Janeiro, said in a report of 
October 1, 1906 : 

The English company of Lamport & Holt have been running a monthly 
service (between Rio and New York) with a practical monopoly, and 
without competition the freights have been prohibitive. It is hoped 
that we are entering upon a new era, more favorable to merchants who 
may desire to reach out for trade with Brazil. The crying need of 
our relations with Brazil is better steamship communication. Inquiry 
among our leading financiers and merchants indicates that encouragement 
by our National Government in the form of a small postal or other 
subvention would quickly bring about the- establishment of a good line 
of American steamers between New York and Rio. Given a few facilities 
our trade with Brazil must inevitably go ahead with leaps and bounds. 

Consul-General Anderson has this to saj^ on the subject : 

High freight rates shut American exporters out of markets which 
otherwise they might have. Low freight rates, for instance, would enable 
American millers to ship American flour to ports in Brazil far south of 
their present limit. Freight rates from New York to Brazil similar to 
those obtaining between New York and the Far East would mean largely 
increased sales of American flour. What is true of flour is true of other 
things. The rebate system adopted by the shipping combine also works 
directly and materially against small shippers, among the latter being 
most American exporters selling to the Brazilian trade. 

One or more strong American steamship lines, sufficiently 
compensated by the Government for the carriage of our mails, 
will effectually thwart the schemes of this now all-powerful 
foreign steamship trust, and secure competition in the trade 
with South America. 

Pending' Republican Proposition*. 

Briefly stated, the Republican shipping project now before 
Congress is based on these considerations : 

(a) Profits of ocean mail service to be devoted to the im- 
provement of that service. 

(b) Improvements to be made where most needed. 

(c) Expenses for the whole ocean mail service not to exceed 
receipts in any one year. 

(d) American mail steamships to be employed if possible in 
extending and improving the service. 

(e) Export trade to be extended. 

(f) Facilities for buyers and sellers to make the voyage 
comfortably between the United States, South America, and 
Australia. 

(g) Shipbuilding to be encouraged. 

(h) Auxiliary naval strength to be increased. 

With an initial cost of less than $1,500,000 the project eon- 
templates with 27 fast steamships (involving an expenditure by 
shipowners in American shipyards of over $30,000,000 for Ameri- 
can labor and its products) a fortnightly service to Rio de 
Janeiro and to Buenos Ayres; to Manila over two routes across 

the Pacific, one via Hawaii, one direct, and a Service once in 

three weeks from the Pacific coasi to Australasia, fche approxi- 
mate length of each route outward and the compensation to he 
paid for, twenty-six voyages in a year (or to Australasia eigh- 
teen voyages, aa follows : 



466 MERCHANT MARINE. 








Nauti- 
cal 
miles. 


Yearly 
compen- 
sation. 


Number 

of 

ships. 


Atlantic or Gulf coast to Rio de Janeiro 


5,000 
6,000 

7,800 

6,500 
7,300 


$598,000 
717,600 

932,880 

777,400 
604,410 


5 


Atlantic or Gulf coast to Buenos Ayres__ 


6 


Pacific coast via Hawaii to Japan, China, and 
the Philippines _ 


6 


Pacific coast direct to Japan, China, and the 
Philippines _ ___ ___ 


3 


Pacific coast via Hawaii to Australasia __ 


4 






Total j 




3,630,320 


27 









This estimate is for the maximum amounts which, conld be paid 
in any instance. The actual bids of steamship companies might 
be for smaller amounts and would be sure to be for smaller 
amounts if there were several bidders. Moreover, the Postmaster- 
General in his discretion might decline to pay more than $3 per 
mile if he believed that this rate was sufficient compensation to 
secure a service. 

Foreign Subsidies. 

Other nations for military, mail, and commercial purposes 
deem it important to promote their national shipping in foreign 
trade by national assistance. The annual grants for these pur- 
poses at the present time by the principal nations are substan- 
tially as follows : 

Subsidies to shipping. 



Country. 


Mail. 


General. 


Total. 




$1,288,201 

82,455 

5,019,703 

1,825,651 

5,204,068 

1,757,812 

3,417,042 

367,468 

48,338 

63,300 


$656,270 


$1,944,471 
82,45-5 
8,643,423 
1,825,651 
6,516,268 
2,819,151 
6,135,507 






. 3,623,720 






1,312,200 
1,061,639 
2,718,465 


Italy 




367,468 




116,018 


137,556 




63,300 




1,595,701 


1.595,701 




1,629,927 
81,849 


1,629,927 


Sweden 




81,849 








Total - 


20,785,814 


11,084,013 


31,869,827 



Subsidies and pmjments for the ocean mail service of Great 

Britain and the United States from 1810 to 1901. 

[Compiled from official sources.] 





Great 
Britain. 


United States. 




Mail payments. 


Total 

amount 

paid. 


Year. 


British mail 

and admiralty 

subsidies. 


To American 
steamers, 


To foreign 
steamers. 


1870 


$6,107,761 
4,860,000 
3,873,136 
3,612,065 
• 3,662,805 
3,625,915 
3,490,864 
3,184,425 
3,827,260 
4,142,139 
4,277,972 
4,328,501 
4,442,361 
4,574,805 
4,450,317 
4,516,583 
4,716,397 
4,801,028 
4,743,000 
4,371,000 
4,017,000 
5,536,612 
5,170,323.59 
5,095,076.21 
4,542,978.75 
4,475,067.64 


$791,389 

740,361 

38,780 

49,048 

43,319 

76,727 

86,890 

109,828 

120,170 

147,561 

259,788 

646,031 

711,443 

633,035 

1,027,735- 

1,288,674 

1,038,141 

998,211 

1,269,660 

1,250,381 

1>525,313 

1,611,794 

1,587,108.75 

1,651,867.81 

1,767,294.88 

1,564,372.83 


$315,944 
236,283 
161,029 
282,855 
286,319 
335,946 
376,528 
505,573 
420,507 
443,201 
478,748.95 
495,630.87 
461, 956. S7 
429,850*37 
394,636.60 
392,670.18 
437,882.06 
487,088.24 
518,951 
575,666 
556,195 
597,9 tO 
850,208.15 
913,413.07 
1,028,603.15 
1,204,424.28 


$1,115,333 


1875 ___ 


976,644 


1880 


199,809 


1885 


331,903 


1886 ^__ 

1887 


329,391 
412,673 


1888 

1889 _. 


4013,418 
515,401 


1890 


510,677 


1891 


590,765 


1892 


733,537.51 


1893 


1,141,662.69 


1894 


1,173,100.80 


1895 


1,062,802,56 


1896 


1,122,372.50 


1897 


1,681,344.40 


1898 


1,478,023.21 


1899 

1900 


1,485,250.09 
1,788.614 


1901 


1,826, OH 


1902 


2,081,508 


1903 

11)04 __ 


2,209.735 
2,137,376.90 


1905 

1906 


2, 565, 280.8* 

2,795.Si)S.03 


1907 


2, 76*. 790. 11 



MERCHANT MARINB. 



457 



The figures above for British mail and admiralty subsidies 
for the year 1907 do not include the new admiralty sub'sidy of 
$729,000 a year which is now being paid to the Cunard Company 
under a 2<*-year contract by which the British Government ad- 
vanced $13 : 000,000 to the company at 2% per cent interest, in fact 
giving to that company the two finest ships ever constructed in 
England; the "Lusitania" and the "Mauretania," if the company 
would operate them to carry the mails and hold them in reserve 
for military purposes, each steamer capable of carrying 10,000 
soldiers armed and equipped. 

Neither do these figures include the sum of approximately 
$1.?50.000 which England has spent annually for some years upon 
picked sailors on her merchant vessels to train them for service 
on her battleships should ocasion arise and to retain them for the 
purpose. 



]'a(ne of foreign carrying trade of the United States in Ameri- 
can and foreign vessels, etc. — Total United States imports and 
Exports. 

[From the Statistical Abstract.] 







By sea. 








Year 








By land 
vehicles. 




end- 
ing 
June 

30. 


In Amer- 
ican 

vessels. 


In foreign 

vessels. 


Total. 


Per cent 
in Ameri- 
can 
vessels. 


Total by 

land 
and sea. 




Dollars. 


Dollars. 


Dollars. 




Dollari. 


Dollars. 


I860— 


5 97, 2 17,757 
881,516, r8fc 


255.010,793 
298,478,278 


762,288,550 
584,995.066 


66.5 
65.2 




762,288,550 
584,995,066 
435,710,711 
594,928,502 

669,855,034 


18$l'— 




1862— 


217,695^418 


218,015,296 


435,710,714 


50. 




1863— 


241,872,471 


843,056", 031 


584, 92-, 502 


41.4 




186L_ 


184,061,486 


485,793,548 


669,855,031 


27.5 




1865— 


107,102. 872 


137,010,121 


601,412,996 


27.7 




604,412,996 
1,010,938,552 


1886- 


325,7ll',861 


885,220,691 


1,010,938,552 


32.2 


—————— 


1867— 


297,834,901 


581,330,103 


879,165,307 


33.9 




879,105,307 
848,527,647 


18**— 


297,981,573 


950,981',O74 


848,527,647 


35.1 


—————— 


1869__ 


280,958,772 


586,492,012 


876,448,784 


33.2 





878,448,784 


18t?-- 


352/. ■ 


638,927, 188 


991,890,889 


35.6 




991,896,889 
1,132,472,258 


18ft- 


353,664,172 


755,822,576 


1,109,186,748 


31.9 


"~22^9S5l5l5 


187*2- 


3v5,-8W,101 


;-,J.346,36_ 


l/,184j 677,463 


29.2 


27,650,770 


1,212,328,233 


1873— 


340,306,592 


966,722,651 


1,313,029,243 


26.4 


27,869,978 


1,340,899,221 


1874A 


350,451,991 


939,206,106 


1,289,658,100 


27.2 


23,022.510 


1,312,080,040 


1875__ 


314,257,792 


881 ,788, 517 


1,199,016,309 


20.2 


20,388,235 


1,219,434,514 


1876— 


311,076,171 


813, 35 J, 987 


1,124, 431, 15S 


27.7 


18,473,154 


1,142,904,312 


1877— 


316,660,281 


850,920,536 


1,176,580,817 


26.9 


17,401,810 


1,194,045,627 


1878- 


313,050,906 


876,991, 129 


1,190,012,035 


26.3 


20,477,364 


1,210,51:',399 


1S79— 


272,015,692 


911,269,232 


1,183,284,924 


23. 


19,423,685 


1,202,708,609 


1880- 


25^,346,577 


1.221,265,431 


1,482,612,011 


17.4 


20,981,393 


1,503.5: )3, -404 


1881'— 




,002,983 


1,519," 


16.5 


25,452,521 


1,545,011,974 


1882^. 


217,2 


1,212..-: 


1,410,20-. 51-1 


15.8 


34,973,317 


1,475,181,831 




240,120,500 


1,258; i 


1,1: IS,: '27, 921 


16. 


48,092,892 


1,547,020,318 


1884- 


■•)9, 035 


1,127,7 


1,301,497,231 


17.2 


46,714,068 


1,408,211,308 


18*1 . 


&4,8i 




1,27 (,381,309 


15.3 


45,332,757 


1,319.717,084 




197,349,503 


l;073,9H',118 


1,271,260,616 


15.5 


43,700,350 


1,31 1,900, J60 


1887— 


194,35 


1,165,194,508 


1,359,551,254 


14.3 


48,951,725 


1,408,502,979 


1888- 


190,85?, 473 


1,174,697,321 


1.365,554,794 


14. 


54,350,827 


1,419,911,021 


18891. 




1.217. 063) 511 


1,120, 80S, 049 


14.3 


66,0. 


1,487,538,081 




2Cfe, 19 


1,371,116,711 


1,573.5,7.-30 


12.9 


73,571,263 


1,947,139,093 


1891 __ 


206, 15 


1 150,0 


1,656, 


12.5 


72,856,194 


1,729.397,006 




220,173,731 


1,564, 


1,784,733,386 


12; 3 


72,947,224 


1,857,680,810 


1803 


197,76 


1. 128,: 




12.2 


87,984,041 


1,714.066,118 


1894L. 




1.2 7:-:. 02 2,1 50 


1,168,290,072 


13.3 


78,844,522 


1,517. 13".. 191 


1895- 


170,507,196 


I ,285,85)6,102 


103,388 


11.7 


'i,742 


1.5'.'.' 






1,:;,7. 


1,505,665,108 


12. 


96,6 


1,662,831,612 




189,075,277 


1 ,525,7 


1,714,8 


11. 










I ,582, 


1,7 13, -J'. I "i 


9.3 


103.7 


,531,984 




L60,l 


1,646,263,857 


1,806,876,068 


8.9 


117.2 


1,921,171,791 


1900- 




,444,424 


.28,616 


9.3 


154, S 5,650 


2,244,424,288 


I'Hll .. 






2,151,933, ill 


8.2 


159,001 






185 ; 81 


l,flhl;fl 


2, 164 |i 


8.8 




140.348 


1903— 


211,' 




2,210,801,120 


9.1 


20.5.059,496 


2.445,-00,918 


L904 








10.3 


70,009 


2,151,91 1,012 








MM, MIS 


12.1 


242,2 


2,688,071,737 


1906— 








12.0 




2.970. 426,90 
3,316.272,58^ 


1907— 




2,684,2 


3,002,027,317 


10.6 


812,645,188 



A nation like Mint of the United States, with eighty mil- 
lions of |it'0|ilc, with resourees unexampled In the history of 
the world, with Ideal* n« hi^h ns those of any nation, with 
the earnest desire to spread the principle! of liberty and of 
popular government, rannot maintain a position of isola- 
tion With re«l»eo1 to tlie peoples Of the uorld when fate 
■hall have thrust some of those peoples under our contral. 
—Hob. Wm. II. Taft. at Cleveland, Ohio. 



*^ 



458 MERCHANT MARINE. 

4 Our Future Is on the Sea. 

[From the speech of the Hon. J. Sloat Fassett, of New York.] 

You will remember there are two great American questions put to 
every proposition : 

First. Is it right? 

Second. Will it pay? 

The great prizes of the future are to be won from the waters, not 
from the lands. Our political well-being and our social integrity and 
health are all wrapped up in developing a merchant navy large enough to 
carry our goods to all the open and opening markets of ths world in 
times of peace, and strong enough, ' in cooperation with our Army and 
Navy, to protect our coasts, as well as our commerce, in times of war. 
This can be done, as matters are at present, only by putting up our sub- 
sidies, or putting down our wages and reducing our scale of living, but 
the scale of living will not go backward ; that is too dear a price to 
pay. If war should come — which God forbid — and if our Navy and our 
Army should undertake to meet ideal conditions and strike the swiftest 
possible blow with the greatest possible force, at the greatest possible 
distance from home, we should find ourselves'- utterly unable to meet con- 
ditions. We codld not embark a single Army division of 20,000 men 
fully armed and fully equipped and prepared for any point, either on the 
Atlantic or Pacific coast.' We could not supply the auxiliary transports 
and hospital ships and other necessary ships for the Navy alone, to say 
nothing of supplying ships to carry and provide for troops. We should 
be reduced in spite of our glorious Navy, to the ridiculous and dangerous, 
if not the fatal, absurdity of operating our fleet within sight of shore and 
waiting to receive the attack of the enemy at the enemy's own pleasure 
and in the enemy's own good way. Our trade rivals subsidize and flourish. 
We are living on a high plane. We could not and would not reduce 
the comforts in the lives and homes of our American working people, 
either at sea or on land, so v/e must come squarely to the line and 
give aid, and give it quickly, and give it abundantly in the form of 
adequate subsidies for services rendered and to be rendered. We must 
give it not because it will be of advantage to individuals here and there, 
but in spite of that fact ; not because it will increase the revenues of 
corporations engaged in deep-sea commerce, but in spite of that fact. 
We must give it in this way, because it is necassary for the well-being 
of all our citizens ; because it enables us in times of peace to obtain se- 
curity in times of war ; we must do it to insure the best interests of 
our future ; we must do it because it will pay to do it and because it 
is right to do it. We must subsidize because it is the only way ; because 
we must be prepared to meet the call of our manifest destiny ; because 
we cannot shirk the burden put upon us by circumstances, and we must 
do it quickly— before our ships are all gone, and before our sailors have 
all disappeared. It is not a question of pride ; it is not a question of 
pleasure ; between failure and success, we must choose success ; between 
humiliation and victory, we must choose victory. We must choose to meet 
our rivals as gloriously on the seas as we have ever met them on the 
land. To maintain our merchant victories by land we. must arrange for 
merchant victories at sea. 

From First Annual Report of Secretary of Commerce and 
Labor, Hon. George B. Cortelyon, 1903. 

For years the condition of our shipping in foreign trade has 
been a matter of concern to public-spirited Americans. It is vir- 
tually the only form of commercial and industrial activity in 
which the country has not recently shown creditable growth. As 
an industry it holds exceptional relations to Government. From 
the nature of things, it has been exposed in an unusual degree to 
foreign competition. These and other considerations make it a 
fitting subject for our highest statesmanship. Strong appeals in 
its behalf by our Presidents from the time of General Grant 
and earnest efforts more recently in Congress have so far brought 
meager results. Congress has made it the duty of the Depart- 
ment of Commerce and Labor to foster, promote and develop our 
shipping interests. Commerce and labor, however, are not the 
only interests concerned in the improvement of our merchant 
shipping. Recent legislation and administration have aimed to 
render more effective the militia of the States as an important 
factor in the national defense. In our past wars the men and 
ships of the merchant marine were the reserves that put our 
Navy on a war footing, and under like circumstances they must 
perform the same service. Government aid to the merchant ma- 
rine, in its naval features, should conform closely to our general 
naval policy. The position among nations now occupied by the 
United States warrants the maintenance of an ocean mail service 
equal to that of the United Kingdom or of Germany, in order 
that like those countries we may possess the best possible facili- 
ties of communication in our dealings with distant quarters of 
the world. By the establishment of such service other nations 
have helped to build up their siypbuilding industries and to 
strengthen their position on the sea. 






MERCHANT MARINE. 



Ocean Mail Receipts and Revenue*. 

For some years past the postage collected on our foreign 
ocean mails has been very much greater than the expenses of 
our foreigiD ocean mail service. For the past fiscal year our 
revenues (postage) from foreign ocean mails were $9,579,0*43.48 
and expenses $2,941,816.67, leaving an apparent surplus of 
$3,637,226.81. From this surplus something (between $500,000 
and $600,000) should be deducted for railroad transportation, so 
that the actual surplus was about $3,000,000. It is proposed to 
apply this surplus of ocean mail revenues to the improvement 
and extension of the ocean mail service in those directions where 
improvement and extension are most needed. 

Receipts, cost and aurplus of our foreign mails. 



Year. 


Receipts. 


Cost. 


Surplus. 


1907 

1906 


$6,579,013.48 
6,008,807.53 
4,711,215.03 
5,095,389.18 
4,991,974.54 
3,737,318.57 
3,005,323.61 
8.467, 13d. 26 


$2,941,816.67 
2,965,624.21 
2,670,793.43 
2,516,0-)3.0ij 
2,3S3,588.S0 
2,245,625.55 
2,062,537.16 
2,014,537.96 


$3,837,226.81 
3,013,183.32 


1905 


2, 910, 410. 6U 


1904 


2,579,336.12 


11)03 .„ _ 


2,608,385.71 


1902 

1901 . 

1900 


1,491,693.02 

942.7b6.40 

1,452,001.30 







Ship Materials Already Free. 

All materials of every kind required for the construction. 
equipment or repair of vessels built in this country for the for- 
eign trade or for the long-voyage coastwise trade between our 
Atlantic and Pacific seaports are free of duty under sections 12 
and 13 of the free list of the Dingley tariff, as follows : 

Dingley Tariff Free Ld»t. 

Sec. 12. That all materials of foreign production which may be nec- 
essary for the construction of vessels built in the United States tor 
foreign account and ownership, or for the purpose of being employed in 
the foreign trade, including the trade between the Atlantic and Pacitic 
ports of the United States, and all such materials necessary for the build- 
ing of their machinery, and all articles necessary for their outfit and 
equipment, may be imported in bond under such regulations as the Sec- 
retary of the Treasury may prescribe ; and upon proof that such materials 
have been used for such purposes no duties shall be paid thereon. But 
vessels receiving the benefit of this section shall not be allowed to engage 
in the coastwise trade of the United States more than two months in 
any one year, except upon the payment to the United States of the duties 
of which a rebate is herein allowed : Provided, That vessels built in the 
United States for foreign account and ownership shall not be allowed to 
engage in the coastwise trade of the United States. 

Sec. '13. That all articles of foreign production needed for the repair 
of American vessels engaged in foreign trade, Including the trade beweeu 
the Atlantic and Pacific porta of the United States, may be withdrawn 
fiimi bonded warehouse** free of duty under such regulations as the Sec- 
retary of the Treasury may prescribe. 

Under this law not only steel plates and shapes, but articles 
of equipment so elaborate and costly as ships' compasses, have 
been imported free of duty for the use of vessels built in this 
country for the foreign trade and for the coastwise trade be- 
t ween the Atlantic and Pacific. 



Ocean Freight* and Fare*. 

The total amount expended in ocean freights and fairs in 
trade between the United States and foreign countries, both 
going and coming, is not a matter of official record. Prom 
careful computations made by American and foreign authorities 

ii is estimated however, that in 1906 the fares paid by pass.-n- 
<>crs to and fro between the United States and foreign countries 
amounted to $65,000,000^ the cost of transport inn- the mails, both 
going and coming-, to aboul $5,000.1)00. and freights on car^ueH 
to $155,000,000, making a grand total of $225,000,000. 



4M MERCHANT MARINE. 

Number and net and gross tonnage of steam and sailing ves- 
sels of over 100 tons, of the several countries of the world, as 
recorded in Lloyd's Register for 1901-8. 




Steam. 


Sail. * 


Total 
tonnage. 


Flag. 


Num- 
ber. 


Gross tons. 


Num- 
ber. 


Net tons. 


British : 
United Kingdom 


8,292 
1,219 


15,930,368 
1,070,771 


1,225 
781 


1,069,300 
250,229 


16,999,668 
1,321,000 






Total 


9,511 


17.001.189 


2,006 


1,319,529 


18,320, §68 


American (United States): 
Sea 


1,029 
465 
83 


1,503,059 

1,618,718 

39,118 


1,905 
47 
29 


1,225,652 

119,045 

6,336 


2,728,711 

1,737,763 

45,454 


Lake 

Philippine Islands 


Total. 


1,577 


3,160,895 


1,981 


1,351,033 


4,511.928 




Argentine 

Austro-Hungarian 


169 
312 
131 

283 
87 
501 
455 
809 

1,713 
2.55 
397 
829 

1,181 
65 
687 
468 
889 
132 
295 


105,916 

677,221 

191,597 

191,088 

107,727 

650,955 

776,855 

1,284,368 

3,705,700 

421,743 

823,325 

1,068,747 

1,264,002 

62,675 

720,198 

673,301 

686,517 

106,929 

288,913 


74 

14 

2 

78 

63 

358 

92 

674 

381 

156 

710 

6 

980 

133 

672 

110 

649 

170 

148 


27,155 
11,398 
1,118 
19,597 
48,589 
77,635 
36,772 

477,415 

404,862 
44,789 

396,084 
3,219 

654,529 
38,363 

217,713 
35.448 

191,031 
58,092 
54,825 


133,071 

688,619 

192,715 

210,685 

156,316 

728,590 

813,627 

1,761,733 

4,110,562 

466,532 

1,219,409 

1,071,873 






Danish 


Dutch 

French 

German 

Greek 

Italian 

Japanese 


Norwegian 


1,918,531 




101,038 


Russian 

Spanish _ 


937,911 
708,749 


Swedish 


877,548 


Turkish 


166,021 


Other countries 


343,738 






Total 


20,746 


33,969,811 


9,457 


5,469,106 


39,438,917 



Condition of American merchant marine 1880 to 1907. 





American vessels. 


Regis- 
tered ton- 
nage 
ofvessels 
passing 
tnrough 
Sault Ste. 
Marie 
Canal. 


Y«ar. 


Built 


Engaged 

In foreign 

trade. 


Engaged 
In domes- 
tic trade. 


Engaged 
In com- 
merce of 
Great 
Lakes. 


1880 


Tons. 

157,409 
159,056 
294,122 
369,302 
199,633 
211,639 
131,195 
111,602 
227,096 
232,232 
180,458 
300,038 
393,790 
483,489 
468,833 
436,152 
378,512 
330,316 
418,715 
471,332 


Tons. 

1,352,810 

1,287,998 
946,695 

1,005,950 
994,676 
899,803 
916,180 
838,186 
844,954 
805,584 
737,709 
848,246 
826,694 
889,129 
882,555 
888,776 
808,763 
954,513 
939,486 
871,146 


Tons. 

2,715,224 
2,977,936 
3,477,802 
3,678,809 
3,770,245 
3,925,268 
3,767,849 
3,797,774 
3,858,926 
3,963,436 
4,012,029 
4,015,992 
4,338.145 
4,635,089 
4,915,347 
5,198,569 
5,392,767 
5,502,030 
5,735,483 
6,067,648 


Tons. 
605,102 ' 
749,948 
1,063,063 
1,154,870 
1,183,582 
1,261,067 
1,227,400 
1,241,459 
1,324,067 
1,410,102 
1,437,500 
1,446,348 
1,565,587 
1,706,294 
1,816,511 
1,902,698 
2,019,208 
2,062,117 
2,234,432 
2,439,741 


Registered 
*.ons. 
1,734,890 


1885 _ 


3,035,937 


1890 

1891 

1892 

1893 


8,454,435 
8,400,685 
10,647,203 
8,949,754 


1894 


13,110,366 


1895 


16,806,781 


1896 


17,249,118 


1897 — 


17,619,933 


1898 


18,622,751 


1899 

1900 


21,958,347 
22,315,834 


1901 L. 

1902 ._ 


24,626,976 
31,955,582 


1903 

1004 

1905- 


27,736.446 
24,364,138 
36,617,699 


1906 


41,098,324 


1907 


44,087,974 







The problems that seemed to haug over tis at the close of 
the war with Spain have gone far toward solntion. We of 
America have discovered that we, too, possess the supreme 
governing capacity, capacity not merely to govern ourselves 
at home, hut that great power that in all ages has made the 
difference between the great and the small nations, the 
capacity to govern men wherever they were found. — Elihn 
Root at Union League, New York, Feb. 3, 1904. 



REPUBLICAN NATIONAL PLATFORM 
OF 1908. 



Once more the ^Republican Party, in National Convention as- 
sembled, submits its cause to the people. This great historic or- 
ganization, that destroyed slavery, preserved the Union, restored 
credit, expanded the national domain, established a sound finan- 
cial system, developed the industries and resources of the eoun- 
try, and gave to the nation her seat of honor in the counci 
the world, now meets the new problems of government with the 
same courage and capacity with which it solved the old. 

Republicanism Under Roosevelt. 

In this greatest era of Americaii advancement the Republican 
Party has reached its highest service under the leadership of 
Theodore Roosevelt. His administration is an epoch in American 
history. In no other period since national sovereignty was won 
under Washington, or preserved under Lincoln, has there been 
such mighty progress in those ideals of government which make 
for justice, equality, and fair dealing- among- men. The highest 
aspirations of the American people have found a voice. Their 
most exalted servant represents the best aims and worthiest 
purposes of all his countrymen. American manhood has been 
lifted to a nobler sense of duty and obligation. Conscience and 
courage in public station and higher standards of right and wrong- 
in private life have become cardinal principles of political faith : 
capital and labor have been brought into closer relations of con- 
fidence and interdependence : and the abuse of wealth, the tyranny 
of power, and all the evils of privilege and favoritism have been 
put to scorn by the simple, manly virtues of justice and fair play. 

The great accomplishments of President Roosevelt have been, 
first ami foremost, a brave and impartial enforcement of the law . 
the prosecution of illegal trusts and monopolies; the exposure and 
punishment of evil-doers in the public service; the more effective 
regulation of the rates and service of the great trans- 
portation lines; the complete overthrow of preferences, rebates, 
and discriminations; the arbitration of labor disputes; the ame- 
lioration of the condition of wage-workers everywhere; the con- 
servation of the natural resources of the country; the forward 
step in the improvement of the inland waterways, and always the 
earnest support and defense of every wholesome safeguard which 
has made more secure the guaranties of life, liberty, and prop- 
erly. 

These are the achievements thai will make Theodore Roose- 
velt his place in history, but more lhan all else the great things 
he has done will be an inspiration to those who h;i\e yet greater 
things to do. We declare our unfaltering adherence to the poli- 
cies thus inaugural ed. and pledge their continuance under a Re- 
publican administration of the Government. 

P.q utility of Opportunity. 

Under the guidance of Republican principles the American 
people have become the richesl nation in the world. Our wealth 
today exceeds that of England and all her colonics, ami that of 
France ami Germany combined. When the Republican Partj 
was born the total wealth of the country was $16,000,000,000. 11 
has leaped to $110,000,000,000 in a generation, while Great 
Britain has gathered imt $60,000,000,000 in five hundred years, The 

United Stales now owns one- Court h of t he world's wealth and 
makes one-third of all modern manufactured !>:•. ducts. In th-. 
greai necessities of civilization, such as coal. th< motive power 
of all activity; iron, the chief basis of all industn ; cotton, th. 

Staple foundation of all fabric.-; wheat, corn, and all th- 
tural products that feed mankind, America's supremacy is uu- 

Ml 



462 REPUBLICAN NATIONAL PLATFORM OF 1908. 

disputed. And yet her great natural wealth has been scarcely 
touched. We have a vast domain of three million square miles, 
literally bursting' with latent treasure, still waiting the magic 
of capital and industry to be converted to the practical uses of 
mankind; a country rich in soil and climate, in the unharnessed 
energy of its rivers, and in all the varied products of the field, 
the forest, and the factory. With gratitude for God's bounty, 
with pride in the splendid productiveness of the past, and with 
confidence in the plenty and prosperity of the future the Repub- 
lican Party declares for the principle that in the development and 
enjoyment of wealth so great and blessings so benign there 
shall be equal opportunity for all. 

Tlie Revival of Business. 

Nothing so clearly demonstrates the sound basis upon which 
our commercial, industrial, and agricultural interests are founded, 
and the necessity of promoting their continued welfare through 
the operation of Republican policies, as the recent safe passage of 
the American people through a financial disturbance which, if 
appearing in the midst of Democratic rule or the menace of it, 
might have equaled the familiar Democratic panics of the past. 
We congratulate the people upon this renewed evidence of Ameri- 
can supremacy and hail with confidence the signs now manifest of 
a complete restoration of business prosperity in all lines of trade, 
commerce, and manufacturing. 

Recent Republican ^legislation. 

Since the election of William McKinley in 1906 the people of 
this country have felt anew the wisdom of intrusting to the Re- 
publican Party through decisive majorities the control and direc- 
tion of national legislation. 

The many wise and progressive measures adopted at recent 
sessions of Congress have demonstrated the patriotic resolve of 
Republican leadership in the legislative department to keep step 
in the forward inarch toward better government. 

Notwithstanding the indefensible filibustering of a Demo- 
cratic minority in the House of Representatives during the last 
session many wholesome and progressive laws were' enacted, and 
we especially commend the passag-e of the emergency currency 
bill, the appointment of the national monetary commission, the 
employers' and Government liability laws, the measures for the 
greater efficiency of the Army and Navy, the widows' pension bill, 
the child labor law for the District of Columbia, the new statute 
for the safety of railroad engineers and firemen, and many other 
acts conserving the public welfare. 

Republican Pledges for the Future. 

Tariff. 

The Republican Party declares unequivocally for the revision 
of the tariff by a special session of Congress immediately follow- 
ing the inauguration of the next President, and commends the 
steps already taken to this end in the work assigned to the appro- 
priate committees of Congress which are now investigating the 
operation and effect of existing schedules. In all tariff legislation, 
the true principle of protection is best maintained by the impo- 
sition of such duties as will equal the difference between the cos.t 
of production at home and abroad, together with a reasonable 
profit to American industries. We favor the establishment of 
maximum and minimum rates to be administered by the President 
under limitations fixed in the law, the maximum to be available to 
meet discriminations by foreign countries against American 
goods entering their markets, and the minimum to represent the 
normal measure of protection at home, the aim and purpose of 
the Republican policy being not only to preserve, without exces- 
sive duties, that security against foreign competition to which 
American manufacturers, farmers, and producers are entitled, but 
also to maintain the high standard of living of the wage-earners 
of this country, who are the most direct beneficiaries of the pro- 
tective system. Between the United States and the Philippines 
we believe in a free interchange of products with such limitations 
as to sugar and tobacco as will afford adequate protection to 
domestic interests. 



REPUBLICAN NATIONAL PLATFORM OF 1908. 463 

Currency. 

We approve the emergency measures adopted by the Govern- 
ment during- the recent financial disturbance, and especially 
commend the x^assage by Congress at the last session of the law 
designed to protect the country from a repetition of such strin 
gency. The Republican Party is committed to the development of 
a permanent currency sj'stem responding to our great needs, and 
the appointment of the National Monetary Commission b\ tin- 
present Congress, which will impartially investigate all proposed 
methods, insures the early realization of this purpose. The pr< s- 
ent currency laws have fully justified their adoptkm, but an ex- 
panding commerce, a marvelous growth in wealth and popula- 
tion, multiplying the centers of distribution, increasing the de- 
mand for the movement of crops in the West and South, and en- 
tailing periodic changes in monetary conditions disclose the need 
of a more elastic and adaptable system. Such a system must nicer, 
the requirements of agriculturists, manufacturers, merchants, and 
business men generally, must be automatic in operation, minimiz- 
ing the fluctuations in interest rates, and. above all. must be in 
harmony with that Republican doctrine which insists that every 
dollar shall be based upon and as good as gold. 

Postal Savings. 

We favor the establishment of a postal savings bank system 
for the convenience of the people and the encouragement of 
thrift. 

Trusts, 

The Republican Party passed the Sherman Anti-trust law over 
Democratic opposition and enforced it after Democratic derelic- 
tion. It has been a wholesome instrument for good in the hands 
of a wise and fearless administration. But experience has shown 
that its effectiveness can be strengthened and its real objects 
better attained by such amendments as will give to the Federal 
Government greater supervision and control over and secure 
greater publicity in the management of that class of corpora- 
tions engaged in interstate commerce having power and oppor- 
tunity to effect monopolies. 

Railroads. 

We approve the enactment of the railroad rate law and the 
vigorous enforcement by the present administration of the stat- 
utes against rebates and discriminations, as a result of which 
the advantages formerly possessed by the large shipper over the 
small shipper have substantially disappeared ; and in this con- 
nection we commend the appropriation by the present Congress 
to enable the Interstate Commerce Commission to thoroughly in- 
vestigate and give publicity to the accounts of interstate rail- 
roads. We believe, however, that the interstate commerce law 
should be further amended so as to give railroads the righl to 
make and publish i ra fnc agreements subject to the approval of the 
Commission, but maintaining always t^e principle of competition 
between naturally competing lines and avoiding t he common con- 
trol of such lines by any means whatsoever. We favor such 
national legislation and supervision as will prevent the future 
overissue of stocks and bonds by interstate carrii c 

I Railroad and Government Employees. 
The enactment in constitutional form at the present session 
of Congress of the employers' liability law, the passage and en- 
forcement of the safety appliance statutes, as well as the addi- 
tional protection secured for engineers and firemen, the reduction 
I in the hours of labor of trainmen and railroad telegraphers, the 

Successful exercise of I lie powers of mediation and arbitration 

between interstate railroads and their employees, and the Law 
making a beginning in the policy of compensation U>\- injured 

1 employees of the Government, are among Hie most coi ndable 

accomplishments ^\' the present administration. But there is 

further work in this direction yet 1<» be done, and the Republican 
Tarty pledges its continued devotion to i'\-r\ cause that makes 
for safety and the betterment o\' Conditions amOBg khoM whOM 
labor contributes so much to the progress and welfare of the 
country. 



464 REPUBLICAN NATIONAL PLATFORM OF 1908. 

Wage-earners Generally. 

The same wise policy which has induced the Kepublican Party 
to maintain protection to American labor, to establish an eight 
hour day in the construction of all public works, to increase the 
list of emplojrees who shall have preferred claims for wages 
under the bankruptcy laws, to adopt a child labor statute for the 
District of Columbia, to direct an investigation into the condi- 
tion of working women and children and, later, of employees of 
telephone and telegraph companies engaged in interstate busi- 
ness, to appropriate $150,000 at the recent session of Congress in 
order to secure a thorough inquiry into the causes of catastro- 
phes and loss of life in the mines, and to amend and strengthen 
the law prohibiting the' importation of contract labor, will be 
pursued in every legitimate direction within Federal authority 
to lighten the burdens and increase the opportunity for happiness 
and advancement of all who toil. The Kepublican Party recog- 
nizes the special needs of wage-workers generally, for their well 
being means the well being of all. But more important than all 
other considerations is that of good citizenship, and we espe- 
cially stand for the needs of every American, whatever his occu- 
pation, in his capacity as a self-respecting citizen. 

Court Procedure. 

The Kepublican Party will uphold at all times the authority 
and integrity of the courts, State and Federal, and will ever in- 
sist that their powers to enforce their process and to protect life, 
liberty, and property shall be preserved, inviolate. We believe, how- 
ever, that the rules of procedure in the Federal Courts with re- 
spect to the issuance of the writ of injunction should be more ac- 
curately defined by statute, and that no injunction or temporary 
restraining order should be issued without notice, except where 
irreparable injur}?- would result from delay, in which case a 
speedy hearing thereafter should be granted. 

The American Farmer. 

Among those whose welfare is as vital to the welfare of the 
whole country as that of the wage-earner is the American farmer. 
The prosperity of the country rests peculiarly upon the prosper- 
ity of agriculture. The Kepublican Party during the last twelve 
years has accomplished extraordinary work in bringing the re- 
sources of the National Government to the aid of the farmer, not 
only in advancing agriculture itself, but in increasing the conven- 
iences of rural life. Free rural mail delivery has been established ; 
it now reaches millions of our citizens, and we favor its extension 
until every community in the land receives the full benefits of the 
postal service. We recognize the social and economical advantages 
of good country roads, maintained more and more largely at pub- 
lic expense, and less and less at the expense of the abutting- 
owner. In this work we commend the growing practice of State 
aid, and we approve the efforts of the National Agricultural De- 
partment, by experiments and otherwise, to make clear to the 
public the best methods of road construction. 

Rights of the Negro. 

The Kepublican Party has been for more than fifty years the 
consistent friend of the American negro. It gave him freedom 
antl citizenship. It wrote into the organic law the declarations 
that proclaim his civil and political rights, and it believes today 
that his noteworthy progress in intelligence, industry, and good 
citizenship has earned the respect and encouragement of the 
nation. We demand equal justice for all men, without regard to 
race or color ; we declare once more, and without reservation, for 
the enforcement in letter and spirit of the Thirteenth, Four- 
teenth, and Fifteenth Amendments to the Constitution, which were 
designed for the protection and advancement of the negro, and we 
condemn all devices that have "for their real aim his disfranchise- 
ment for reason's Of color alone as unfair, un-American, and re- 
pugnant to the supreme law of the land. 

Natural Resources and Waterways. 

We indorse the movement inaugurated by the administration 
for the conservation of natural reaources ; we approve all meas- 



REPUBLICAN NATIONAL PLATFORM OF 1909. 4 « 5 

ures to prevent the waste of timber; we commend the work now 
going on for the reclamation of arid lands, and reaffirm the .Re- 
publican policy of the free distribution of the available an-; 
the public domain to the landless settler. \o obligation of the 
future is more 'insistent and none will result in greater bless 
to. posterity. In line with this splendid undertaking is the fur- 
ther duty, equally imperative, to enter upon a systematic improve- 
nieiit upon a large and comprehensive plan, just to all portions of 
the country, of the waterways, harbors, and great lakes. 
natural adaptability to the increasing traffic of the land is one of 
the greatest gifts of a benign Providence. 

The Arm a and Navy. 

The Sixtieth Congress passed many commendable acts in- 
creasing the efficiency of the Army and Navy, making the militia 
of the States an integral part of the national establishment. 
authorizing joint maneuvers of army and militia, fortifying 
new naval bases and completing the construction of coaling sta- 
tions, instituting a female nurse corps for naval hospitals 
and ships, and adding two new battleships, ten torpedo boat de- 
stroyers, three steam colliers, and eight submarines to the 
strength of the Navy. Although at peace with all the world, and 
see nre in the consciousness that the American people do not de- 
sire and will not provoke a war with any oilier country, we 
nevertheless declare our unalterable devotion to a policy that will 
keep this Republic ready at all times to defend her traditional 
doctrines, and assure her appropriate part in promoting perma- 
nent tranquillity among the nations. 

Protection of American Citizens Abroad. 

We commend the vigorous efforts made by the Administration 
to protect American citizens in foreign lands, and pledge our- 
selves to insist upon the just and equal protection of all our citi- 
zens abroad. It is the unquestioned duty of the Government to 
procure for all our citizens, without distinction, the rights to 
travel and sojourn in friendly countries, and we declare our- 
selves in favor of all proper efforts- tending to that end. 

Extension of Foreign Commerce. 

Under the administration of the Republican Party the for- 
eign commerce of the United States has experienced a remark- 
able growth until it has a present annual valuation of approxi- 
mately three billions of dollars, and gives employment to a \ast 
amount of labor and capital which would otherwise be idle. It 
has inaugurated, through the recent visit of the Secretary of 
State to South America and Mexico, a new era of Pan-American 
eo'umeree and comity, which is bringing us into closer touch 
with our twenty sister American Republics, having a common 
historical heritage, a Republican form of government, and offer- 
ing us a limitless field of legitimate commercial expansion. 

Arbitration and The Hague Treaties. 

The conspicuous contributions of American statesmanship to 
the great cause of international peaee, so signally advanced in 
The Hague conferences, are an occasion for just pride and gj 

m. At tir> last session of the Senate of the United Stales 
eleven Hague conventions were ratified, establishing the rights ol 
neutrals, laws of war on land, restriction of submarine mines, 
limiting the use of force for the collection of contractual debts, 
governing the opening of hostilities, extending the application of 
Geneva principles, and. in inan\ ways, lessening the eviU ojf wai 
and promoting t he peaceful settlement of international contro- 
versies. At the same session twelve arbitration conventions with 
great nations were confirmed and extradition, boundary, and nat 
urali/atiou treaties of supreme importance were ratified. We in- 
dorse sueh achievements as the highest duty a people can per- 
form and proclaim the obligation of further strengthening the 
bonds off friendship and good-will with all nations of the world. 

Merchant ]f<irine. 

We adhere to the Republican doctrine of encouragement! to 
American shipping and urge such legislation as will iv\ive the 



4€6 REPUBLICAN NATIONAL PLATFORM OF 1998. 

merchant marine prestige of the country, so essential to national 
defense, the enlargement of foreign trade, and the industrial pros- 
perity of our own people. 

Veterans of the Wars. 

Another Kepublican policy which must be ever maintained is 
that of generous provision for those who have fought the coun- 
try's battles and for the widows and orphans of those who have 
fallen. We commend the increase in the widows' pensions made 
by the present Congress, and declare for a liberal administration 
of all pension laws, to the end that the people's gratitude may 
grow deeper as the memories of heroic sacrifice grow more sacred 
with the passing years. 

Civil Service. 

We reaffirm our former declaration that the civil service laws, 
enacted, extended, and enforced by the Kepublican Party, shall 
continue to be maintained and obeyed. 

Public Health. 

W r e commend the efforts designed to secure greater efficiency 
in National public health agencies, and favor such legislation as 
will effect this purpose. 

Bureau of Mines and Mining. 

In the interest of the great mineral industries of our country, 
we earnestly favor the establishment of a Bureau of Mines and 
Mining. 

Cuba, Porto Rico, Philippines, and Panama. 

The American Government, in Kepublican hands, has freed 
Cuba, giving peace and protection to Porto Kico and the Philip- 
pines under our flag, and begun the construction of the Panama 
Canal. The present conditions in Cuba vindicate the wisdom of 
maintaining between that Republic and this imperishable bonds 
of mutual interest, and the hope is now expressed that the Cuban 
people will soon again be ready to assume complete sovereignty 
over their land. 

In Porto Rico the Government of the United States is meeting 
loyal and patriotic support ; order and prosperity prevail, and the 
well-being of the people is in every respect promoted and con- 
served. 

We believe that the native inhabitants of Porto Rico should be 
at once collectively made citizens of the United States, and that 
all others properly qualified under existing laws residing in said 
island should have the privilege of becoming naturalized. 

In the Philippines insurrection has been suppressed, law es- 
tablished, and life and property made secure. Education and prac- 
tical experience are there advancing the capacity of the people for 
government, and the policies of McKinley and Roosevelt are lead- 
ing the inhabitants step by step to an ever-increasing measure of 
home rule. 

Time has justified the selection of the Panama route for the 
great Isthmian Canal, and events have shown the wisdom of se- 
en ring authority over the zone through which it is to be built. 
The work is now progressing with a rapidity far beyond expec- 
tation, and already the realization of the hopes of centuries has 
come within the vision of the near future. 

New Mexico and Arizona. 

We favor the immediate admission of the Territories of New 
Mexico and Arizona as separate States in the Union. 

Centenary of the Birth of Lincoln. 

February 12, 1909, will be the one hundredth anniversary of 
the birth of Abraham Lincoln, an immortal spirit whose fame has 
brightened with the receding years, and whose name stands 
among the first of those given to the world by the great Republic. 
We recommend that this centennial anniversary be celebrated 
throughout the confines of the nation by all the people thereof, 
and especially by the public schools, as an exercise to stir the 
patriotism of the youth of the land. 



REI'VLiTAOAN NATIONAL PLATFORM OF 1998. 441 

Democratic Incapacity for Government. 

We call the attention of the American people to the fact that 
none of the great measures here advocated by the .Republican 
Party could be enacted and none of the steps forward here pro- 
posed could be taken under a Democratic administration or under 
one in which party responsibility is divided. The continuance of 
present policies, therefore, absolutely requires the continuance in 
power of that party which believes in them and which possesses 
the capacity to put them into operation. 

Fundamental Differences Between Democracy and Republi- 
canism. 

Beyond all platform declarations there are fundamental dif- 
ferences between the Kepublican Party and its chief opponent 
which makes the one worthy and the other unworthy of public 
trust. 

In history the difference between Democracy and Republican- 
ism is that the one stood for debased currency, the other for 
honest currency ; the one for free silver, the other for sound 
money ; the one for free trade, the other for protection ; the one 
for the contraction of American influence, the other for its ex- 
pansion ; the one has been forced to abandon every position taken 
on the great issues before the people, the other has held and 
vindicated all. 

In experience, the difference between Democracy and Republi- 
canism, is that one means adversity, while the other means pros- 
perity ; one means low wages, the other means high ; one means 
doubt and debt, the other means confidence and thrift. 

In principle, the difference between Democracy and Republi- 
canism is that one stands for vacillation and timidity in govern- 
ment, the other for strength and purpose ; one promises, the other 
performs ; one finds fault, the other finds work. 

The present tendencies of the two parties are even more 
marked by inherent differences. The trend of Democracy is to- 
ward socialism, while the Republican Party stands for a wise and 
regulated individualism. Socialism would destroy wealth. Re- 
publicanism would prevent its abuse. Socialism would give to 
each an equal right to take ; Republicanism would give to each 
an equal right to earn. Socialism would offer an equality of pos- 
session which would soon leave no one anything to possess ; Re- 
publicanism would give equality of opportunity which would as- 
sure to each his share of a constantly increasing sum of posses- 
sions. In line with this tendency the Democratic party of to-day 
believes in government ownership, while the Republican Party 
believes in government regulation. Ultimately Democracy would 
have the nation own the people, while Republicanism would have 
I the people own the nation. 

Upon this platform of principles, of purposes, reaffirming our 
adherence to every Republican doctrine proclaimed since the birth 
of the party, we go before the country asking the support nor 
only of those who have acted with us heretofore, but of all our 
fellow-citizens who, regardless of past political differences, unite 
i in the desire to maintain the policies, perpetuate the blessings, 
and make secure the achievements of a greater America. 



Oar free trade friends have told ns for years and years 
that if we do not l»ny we cannot sell, bnt we have gone 
on doing both at a wondrousiy increasing rate, bnt selling- 
just enough more than we buy to meet all foreign obli- 
gations and keep our gold as a bulwark of redemption. 
That has been the Republican method, and that is going to 
continue to be the Republican method. — Hon. James S. Sher- 
man. 

We were passing- into a regime of an irresponsible 
plutocracy. During the last four years there has been a 
great moral awakening to tbis danger among the people ami 
a popular demand that the lawbreakers — no matter ho*v 
wealthy or how high or powerful their position — shall be 
made to suffer. I'nder the leadership of Theodore Roose- 
velt the Republican party ban not faltered In It* del ertn i na- 
tion to meet the requirements of this situation and to en- 
act sueli legislation as may be necessar> to bring to a close 
this period of Illegitimate corporate immunity.— Hon. AVm. 
H. Taft, at Kansas City, Mo. 



THE DEMOCRATIC NATIONAL PLAT- 
FORM OF J 908. 



We, the representatives of the Democracy of the United States, 
in National Convention assembled, reaffirm our belief in, and 
pledge our loyalty to, the principles of the party. 

We rejoice at the increasing signs of an awakening through- 
out the country. The various investigations have traced graft 
and political corruption to the representatives of predatory 
wealth, and laid bare the unscrupulous methods by which the}^ 
have debauched elections and preyed upon a defenceless public 
through the subservient officials whom they have raised to place 
and power. 

The conscience of the nation is now aroused to free the 
Government from the grip of those who have made it a business 
asset of the favor-seeking corporations. It must become again 
a people's government, and be administered in all its departments 
according to the Jeffersonian maxim — "equal rights to all ; special 
privileges to none." 

"Shall the people rule?" is the overshadowing issue which 
manifests itself in all the questions now under discussion. 

Increase of Office Holders. 

Coincident with the enormous increase in expenditures is a 
like addition to the number of officeholders. During the past 
year 23,784 were added, costing $16,156,000 and in the past six 
years of Eepublican administration the total number of new 
offices created, aside from any commissions, has been 99,319, 
entailing an additional expenditure of nearly $70,000,1)00 as 
against only 10,279 new offices created under the Cleveland and 
McKinley administrations, which involved an expenditure of 
only $6,000,000. We denounce this great and growing increase 
in the number of officeholders as not only imnecessary and 
wasteful but also as clearly indicating a deliberate purpose on 
the part of the administration to keep the Republican party 
in power at public expense by thus increasing the number of its 
retainers and dependents. Such procedure we declare to be no 
less dangerous and corrupt than the open purchase of votes at 
the polls. 

Economy in Administration 

The Republican Congress in the session just ended made 
appropriations amounting to $1,008,000,000, exceeding the total 
expenditures of the past fiscal year by $90,000,000 and leaving a 
deficit of more than $60,000,000 for the fiscal year just ended. 
We denounce the heedless waste of the ^people's money which 
has resulted in this appalling increase as a shameful violation 
oi all prudent considerations of government and as no less than 
a crime against the millions of working men and women from 
whose earnings the great proportion of these colossal sums must 
be extorted through excessive tariff exactions and other indirect 
methods. It is not surprising that in the face of this shocking 
record the Republican platform contains no reference to econom- 
ical administration or promise thereof in the future. We demand 
that a stop be put to this frightful extravagance, and insist upon 
the strictest economy in every department compatible with 
frugal and efficient administration. 

Arbitrary Power — The Speaker. 

The House of Representatives was designed by the fathers 
of the Constitution to be the popular branch of our Government, 
responsive to the public will. 

The House of Representatives, as controlled in recent years by 
the Republican party has ceased to be a deliberative and legisla- 

461 



DEMOCRATIC NATIONAL PLATFORM OF 190%. A%§ 

tive body, responsive to the will of a majority of its members, 
but has come unde* the absolute domination of the Speaker, 
who has entire control of its de liberations and powers of legisla- 
tion. 

We have observed with amazement the popular branch of our 
Federal Government helpless to obtain either the consideration 
or enactment of measures desired by a majority of its mem- 
bers. 

Legislative control becomes a failure when one member in the 
person of the Speaker is more powerful than the entire oociy. 

Y\e demand that the House of Representatives shall again 
become a deliberative body, controlled by a majority of the 
people's representatives, and not by the Speaker; and we pledge 
ourselves to adopt such rules and regulations to govern the House 
of Representatives as will enable a majority of its members to 
direct its deliberations and control legislation. 

Misuse of Patronage. 

We condemn as a violation of the spirit of our institutions 
the action of the present Chief Executive in using the patronage 
of his high office to secure the nomination for the Presidency of 
one* of his cabinet officers. A forced succession in the Presidency 
is scarcely less repugnant to public sentiment than is life tenure 
in that office. No good intention on the part of the Exeeutive, 
and no virtue in the one selected, can justif3' the establishment 
of a dynasty. The right of the people freely to select their 
officials is inalienable and can not be delegated. 

Publicity of Campaign Contributions. 

We demand Federal legislation forever terminating the part- 
i nership which has existed between corporations of the country 
and the Republican party under the expressed or implied agree- 
| ment that in return for the contribution of great sums of money 
wherewith to purchase elections, they should be allowed to con- 
tinue substantially unmolested in their efforts to encroach upon 
the rights of the people. 

Any reasonable doubt as to the existence of this relation has 
been forever dispelled by the sworn testimony of witnesses ex- 
amined in tile insurance investigation in New York, and the 
open admission of a single individual — unchallenged by the 
Republican National Committee — that he himself at the personal 
request of the Republican candidate for the Presidency raised 
over a quarter of a million dollars to be used in a single State 
| during the closing hours of the last campaign, in order that 
! this practice shall be stopped for all time, we demand the passage 
of a statute punishing by imprisonment any officer of a corpora- 
j tion who shall either contribute on behalf of, or consent to the 
; contribution by. a corporation of any money or thing of value to 
j be used in furthering the election of a President or Yiee Presi- 
dent of the United States or of any member of the Congress 
! thereof. 

We denounce the Republican party, having complete control 
'of the Federal Government, for their failure to pass the bill, 
introduced in the last Congress, to compel the publication of the 
j names of contributors and the amounts contributed toward cam- 
paign funds, and point to the evidence of their insincerity when 
they sought by an absohitely irrelevant and impossible amend- 
ment to defeat the passage of the bill. As & further evidence 
I of their intention to conduct their campaign in the coming con- 
test with vast sums of money wrested from favor-seeking corpor- 
ations, we call attention to the fact that the recent Republican 
National Convention at Chicago refused, when the iaaue was prs- 
sented to it, to declare against such practices. 

We pledge the Democratic party to the enactment of a law 
prohibiting any corporation from contributing to a campaign 
fund and any individual from Contributing an amount above a 
reasonable maximum, and providing for the publication before 
elections of all such contributions. 



470 DEMOCRATIC NATIONAL PLATFORM OF 1908. 

The Rietits of the States. 

Believing-, with Jefferson, in "the support of the State gov- 
ernments in all their rights as the most competent administra- 
tions for our domestic concerns, and the surest bulwarks against 
anti-republican tendencies," and in "the preservation of the Gen- 
eral Government in its whole constitutional vigor, as the sheet 
anchor of our peace at home and safety abroad," we are opposed 
to the centralization implied in the suggestion, now frequently 
made, that the powers of the General Government should be 
extended by judicial construction. There is no twilight zone 
between the Nation and the State in which exploiting interests 
can take refuge from both ; and it is as necessary that the Fed- 
eral Government shall exercise the powers delegated to it as 
it is that the State Governments shall use the authority reserved 
to them ; but we insist that Federal remedies for the regulation 
of interstate commerce and for the prevention of private mo- 
nopoly shall be added to, not substituted for, State remedies. 

Tariff. 

We welcome the belated promise of tariff reform now offered 
by the Republican party in tardy recognition of the righteous- 
ness of the Democratic position on this question ; but the 
people can not safely intrust the execution of this important 
work to a party which is so deeply obligated to the highly pro- 
tected interests as is the Republican party. We call attention to 
the significant fact that the promised relief is postponed until 
after the coming election — an election to succeed in which the 
Republican party must have that same support from the bene- 
ficiaries of the high protective tariff as it has always hereto- 
fore received from them ; and to the further fact that during 
years of uninterrupted power no action whatever has been taken 
by the Republican Congress to correct the admittedly existing 
tariff iniquities. 

We favor immediate revision of the tariff by the reduction 
of import duties. Articles entering into competition with trust- 
controlled products should be placed upon the free list, and 
material reduction should be made in the tariff upon the neces- 
saries of life, especially upon articles competing with such 
American manufactures as are sold abroad more cheaply than 
at home ; and gradual reduction should be made in such other 
schedules as may be necessary to restore the tariff to a reve- 
nue basis. 

Existing duties have given to the manufacturers of paper 
a shelter behind which they have organized combinations to 
raise the price of pulp and of paper, thus imposing a tax upon 
the spread of knowledge. We demand the immediate repeal 
of the tariff on wood pulp, print paper, lumber, timber and 
logs, and that these articles be placed upon the free list. 

Trusts. 

A private monopoly is indefensible and intolerable. We 
therefore favor the vigorous enforcement of the criminal law 
against guilty trust magnates and officials, and demand the 
enactment of such additional legislation as may be necessary 
to make it impossible for a private monopoly to exist in 
the United States. Among the additional remedies we specify 
three: First, a law preventing a duplication of directors among 
competing corporations ; second, a license system which will, with- 
out abridging the right of each State to create corporations, or 
its right to regulate as it will foreign corporations doing busi- 
ness within its limits, make it necessary for a manufacturing 
or trading corporation engaged in interstate commerce to take 
out a Federal license before it shall be permitted to control j 
as much as twenty-five per cent of the product in which lfc deals, 
the license to protect the public from watered stock and to pro- 
hibit the control by such corporation of more than fifiy per 
cent of the total amount of any product consumed in the United 
States; and, third, a law compelling such licensed corporations 
to sell to all purchasers in all parts of the country on the 
same terms, after making due allowance for cost of transpor- 
tation. 



DEMOCRATIC NATIONAL PLATFORM OF 1908. 471 

Railroad Regulation. 

We assert the right of Congress to exercise complete con- 
trol over interstate commerce and the right of each Slate to 
exercise like control over commerce within its borders. 

We demand such enlargement of the powers of the Inter- 
state Commerce Commission as may be necessary to enable 
it to compel railroads to perform their duties as common car- 
riers and prevent discrimination and extortion. 

We favor the efficient supervision and rate regulation of rail- 
roads engaged in interstate commerce. To this end we recom- 
mend the valuation of railroads by the Interstate Commerce 
Commission, such valuation to take into consideration the phys- 
ical value of the property, the original cost of production, and 
all elements of value that will render the valuation fair and 
just. 

We favor such legislation as will prohibit the railroads from 
engaging in business which brings them into competition with 
their shippers ; also legislation which will assure such reduction 
in tranportation rates as conditions will permit, care being 
taken to avoid reduction that would compel a reduction of 
wages, prevent adequate service, or do injustice to legitimate in- 
vestments. 

We heartily approve the laws prohibiting the pass and the 
rebate, and we favor any further necessary legislation to re- 
strain, correct and prevent such abuses. 

We favor such legislation as will increase the power of the 
Interstate Commerce Commission, giving to it the initiative 
with reference to rates and transportation charges put into 
effect by the railroad companies, and permitting the Interstate 
Commerce Commission, on its own initiative, to declare a rate 
illegal and as being more than should be charged for such serv- 
ice. The present law relating thereto is inadequate, by reason 
of the fact that the Interstate Commerce Commission is with- 
out power to fix or investigate a rate until complaint has 
been made to it by the shipper. 

We further declare in favor of a law providing that all 
agreements of traffic or other associations of railway agents 
affecting interstate rates, service or classification shall be un- 
lawful unless filed with and approved by the Interstate Com- 
merce Commission. 

We favor the enactment of a law giving to the Interstate 
Commerce Commission the pow r er to inspect proposed railroad 
tariff rates or schedules before they shall take effect, and, 
if they be found to be unreasonable, to initiate an adjustment 
thereof. 

Banking. 

The panic of 1907, coming without any legitimate excuse, 
when the Republican party had for a decade been in complete 
control of the Federal Government, furnishes additional proof 
that it is either unwilling or incompetent to protect the in- 
terests of the general public. It has so linked the country to 
Wall street that the sins of the speculators are visited upon 
the whole people. While refusing to rescue the wealth pro- 
ducers from spoliation at the hands of the stock- gamblers and 
speculators in farm products, it has deposited Treasury Eunds, 
without interest and without competition, in favorite h»e 
It has u^fd an emergency for which it is largely responsible 
to force through Congress a bill changing the basis of bank 
currency and inviting market manipulat ion. and has failed to 
give to the 15,000,000 depositors of the country protection in 
their savings. 

We believe that in so far as the needs of commerce r«C|iiire 
an emergency currency, such currency should be issued and con- 
trolled by the Federal Government, and loaned on adequate 
curity to National and State banks. We pledge our- 
legislation under which tine national banks shall be Required 
to establish a guarantee fund for the prompt payment of the 
depositors of any insolvent national bank, under an equitable 
system which shall be available to all State banking institu- 
tions wishing to use it. 

We favor a postal savings bank if the guaranteed Dank eau 



4ft DEMOCRATIC NATIONAL PLATFORM OF WOH. 

not be secured, and that it be constituted so as to keep the 
deposited money in the communities where it is established. 
But we condemn the policy of the Republican party in providing 
postal savings banks under a plan of conduct by which they will 
aggregate the deposits of the rural communities and redeposit 
the same while under Government charge in the banks of Wall 
street, thus depleting the circulating medium of the producing 
regions and unjustly favoring the speculative markets. 

Income Tax. 

We favor an income tax as part of our revenue system, and 
we urge the submission of a constitutional amendment speci- 
fically authorizing Congress to levy and collect a Lax upon in- 
dividual and corporate incomes, to the end that wealth may 
bear its proportionate share of the burdens of the Federal Gov- 
ernment. 

Liat>or and Injunctions. 

The courts of justice are the bulwark of our liberties, 
and we yield to none in our purpose to maintain their dignity. 
Our party has given to the bench a' long line of distinguished 
judges, who have added to the respect and confidence in which 
this department must be jealously maintained. We resent tne 
attempt of the Republican party to raise a false issue respect- 
ing the judiciary. It is an unjust reflection npon a great oody 
of our citizens to assume that they lack respect for the courts. 

It is the function of the courts to interpret the laws which 
the people create, and if the laws appear to work economic, 
social or political injustice, it is our duty to change them. The 
only basis upon which the integrity of our courts can stand 
is that of unswerving justice and protection of life, personal 
liberty and property. If judicial processes may be abused, 
we should guard them against abuse. 

Experience has proved the necessity of a modification of 
the present law relating to injunctions, and we reiterate the 
pledge of our national platforms of 1896 and 1904 in favor of 
the measure which passed the United States Senate in 1896, but 
which a Republican Congress has ever since refused to enact, 
relating to contempts in Federal Courts and providing for trial 
by jury in cases of indirect contempt. 

Questions of judicial practice have arisen especially in con- 
nection with industrial disputes. We deem that the parties 
to all judicial proceedings should be treated with rigid impar- 
tiality, and that injunctions should not be issued in any cases 
in which injunctions would not issue if no industrial dispute 
were involved. 

The expanding organization of industry makes it essential 
that there should be no abridgment of the right of wage earners 
and producers to organize for the protection of wages and the 
improvement of labor conditions, to the end that such labor 
organizations and their members should not be regarded as 
illegal combinations in restraint of trade. 

We favor the eight-hour day on all Government work. 

We pledge the Democratic party to the enactment of a law 
by Congress, as far as the Federal jurisdiction extends, for a 
general employers' liability act covering injury to body or loss 
of life of employees. 

We pledge the -Democratic party to the enactment of a law 
creating a Department of Labor, represented separately in the 
President's Cabinet, in which Department shall be included the 
subject of mines and mining. 

1 Merchant Marin*. 

We believe in the upbuilding of the American merchant 
marine without new or additional burdens upon the people and 
without bounties from the public treasury. 

The Navy. 

The constitutional provision that a navy should be pro- 
vided and maintained means an adequate nary, and we believe 



DEMOCRATIC NATIONAL PLATFORM OF 1908. 4,1% 

that the interests of this country would be best served by having 
a navy sufficient to defend the coasts of this country and pro- 
tect American citizens wherever their rights may be in jeopardy. 

Protection of American Citizen*. 

We pledge ourselves to insist upon the just and lawful pro- 
tection of our citizens at home and abroad, and to use all proper 
methods to secure for them, whether native born or natural- 
ized, and without distinction of race or creed, the equal pro- 
tection of the law and the enjoyment of all rights and priv- 
ileges open to them under our treaties; and if. under existing 
treaties, the right to travel and sojourn is denied to American 
citizens, or recognition is withheld from American passports 
by any countries on the ground of race or creed, we favor prompt 
negotiations with the governments of such countries to secure the 
removal of these unjust discriminations. 

We demand that all over the world a duly authenticated 
passport issued by the Government of the United States to an 
American citizen shall be proof of the fact that he is an 
American citizen and shall entitle him to the treatment due him 
as such. 

Civil Service. 

The laws pertaining to the civil service should be honestly 
and rigidly enforced, to the end that merit and ability shail 
be the standard of appointment and promotion rather than 
service rendered to a political party. 

Pensions. 

We favor a generous pension policy, both as a matter of 
justice to the surviving veterans and their dependents, and 
because it tends to relieve the country of the necessity 'of 
maintaining a large standing army. 

Health Bureau 

We advocate the organization of all existing national pub- 
lic health agencies into a national bureau of public health 
with such power over sanitary conditions connected with fac- 
tories, mines, tenements, child labor and other snch subjects as 
are properly within the jurisdiction of the Federal Government 
and do not interfere with the power of the States controlling 
public health agencies. 

Agricultural and Mechanical Education. 

The Democratic party favors the extension of agricultural, 
mechanical and industrial education. We therefore favor the 
establishment of district agricultural experiment stations and 
secondary agricultural and mechanical colleges in the several 
States. 

Popular Election of Senators. 

We favor the election of United States Senators by direct 
$ote of the people, and regard this reform as the gateway to 
other national reforms. 

Oklahoma. 

We welcome Oklahoma to the sisterhood of States and heart- 
ily congratulate her upon the auspicious beginning of a great 
career. 

Panama Canal. 

We believe that the Panama Canal will prove of great value 
to our country, and favor its speedy completion. 



Arizona and New Mexico. 
The National Democratic party has for the last sixteen 
pears labored for the admission of Arizona and v 
separate States of the Federal [Jntan-, and recognizing thai each 
possesses every qualification suesessfully to maintain separate 
state 1 governments, We favor the immediate admission of these 
Territories as separate States. 



4T4 DEMOCRATIC NATIONAL PLATFORM OF 1908. 

Grazing? Lands. 

The establishment of rules and regulations, if any such 
are necessary, in relation to free grazing upon the public 
lands outside of forest and other reservations, until the same 
shall eventually be disposed of, should be left to the people 
of the States respectively in which such lands may be situated. 

Waterways. 

Water furnishes the cheaper means of transportation, and 
the National Government, having the control of navigable waters, 
should improve them to their fullest capacity. We earnestly 
favor the immediate adoption of a liberal and comprehensive 
plan for improving every water course in the Union which 
is justified by the needs of commerce ; and, to secure that 
end, we favor, when practicable, the connection of the Great 
Lakes with the navigable rivers and with the Gulf through 
the Mississippi river, and the navigable rivers with each other, 
and the rivers, bays and sounds of our coasts with each other, 
by artificial canals, with a view to perfecting a system of 
inland waterways to be navigated by vessels of standard draught. 

We favor the coordination of the various services of the 
Government connected with waterways in one service, for the 
purpose of aiding in the completion of such a S3 r stem of inland 
waterways ; and we favor the creation of a fund ample for 
continuous work, which shall be conducted under the direction 
of a commission of experts to be authorized by law. 

Post Roads. 

We favor Federal aid to State and local authorities in the 
construction and maintenance of post roads. 

Telegraph and Telephone. 

We pledge the Democratic party to the enactment of a law 
to regulate, under the jurisdiction of the Interstate Commerce 
Commission, the rates and services of telegraph and telephone 
companies engaged in the transmission of messages between 
the States. 

Nataral Resources. 

We repeat the demand for internal development and for the 
conservation of our natural resources contained in previous 
platforms, the enforcement of which Mr. Eoosevelt has vainly 
sought from a reluctant party; and to that end we insist 
upon the preservation, protection and replacement of needed 
forests, the preservation of the public domain for home-seekers, 
the protection of the national resources in timber, coal, iron and 
oil against monopolistic control, the development of our water- 
ways for navigation and every other useful purpose, including 
the irrigation of arid lands, the reclamation of swamp lands, 
the clarification of streams, the development of water power, 
and the preservation of electric power, generated by this nat- 
ural force, from the control of monopoly; and to such end we 
urge the exercise of all powers, national, State and municipal, 
both separately and in co-operation. 

We insist upon a policy of administration of our forest 
reserves which shall relieve it of the abuses which have arisen 
thereunder, and which shall, as far as practicable, conform 
to the police regulations of the several States wherein the 
reserves are located, which shall enable homesteaders as of right 
to occupy and acquire title to all portions thereof which are 
especially adapted to agriculture, and which shall furnish a 
system of timber sales available as well to the private citizen 
as to the larger manufacturer and consumer. 

Hawaii. 

We favor the application of the principles of the land laws 
of the United States to our newly acquired territory. io.awaii, 
to the end that the public lands of that territory may be 
held and utilized for the benefit of bona fide homesteaders. 



DEMOCRATIC NATIONAL PLATFORM OF 1$P9. 4Tf 

The Philippines. 

We condemn the experiment of imperialism as an inexcus- 
able blunder which has involved us in enormous expense, brought 
us weakness instead of strength, and laid our nation open to 
the charge of adandoning a fundamental doctrine of self-gov- 
ernment. We favor an immediate declaration of the nation's 
purpose to recognize the independence of the Philippine Islands 
as soon as a stable government can be established, such in- 
dependence to be guaranteed by us as we guarantee the in- 
dependence of Cuba, until the neutralization of the islands can 
be secured by treat}' with .other powers. In recognizing- the 
independence of the Philippines our Government should retain 
such land as may be necessary for coaling stations and naval 
bases. 

Alaska and Porto Rico. 

We demand for the people of Alaska and Porto Eico the 
full enjoyment of the rights and privileges of a territorial 
form of government, and that the officials appointed to ad- 
minister the government of all our territories and the District 
of Columbia should be thoroughly qualified by previous bona 
fide residence. 

Pan-American Relations. 

The Democratic party recognizes the importance and ad- 
vantage of developing closer ties of Pan-American friendship 
and commerce between the United States and her sister nations 
of Latin- America, and favors the taking of such steps, consistent 
with Democratic policies, for the better acquaintance, greater 
mutual confidence, and larger exchange of trade as will bring 
lasting benefit not only to the United States, but to this group 
of American Republics, having constitutions, forms of govern- 
ment, ambitions and interests akin to our own. 

Asiatic Immigration. 

Wc favor full protection, by both National and State gov- 
ernments within their respective spheres, of all foreigners re- 
siding in the United States under treaty, but we are apposed 
to the admission of Asiatic immigrants who cannot be amal- 
gamated with our population, or whose presence among us would 
raise a race issue and involve us in diplomatic controversies 
with Oriental powers. 

Foreigrn Patents. 

We believe that where an American citizen holding a patent 

l in a foreign country is compelled to manufacture under his 

I patent within a certain time, similar restrictions should be 

applied in this country to the citizens or subjects of such a 

country. 

Conclusion. 

The Democratic party stands for Democracy ; the Republican 
party has drawn to itself all that is aristocratic and pluto- 
cratic. 

The Democratic party is the champion of equal rights and 
' opportunities to all ; the Republican party is the party of 
privilege and private monopoly. The Democratic party listens 
to the voice of the whole people and gauges progress by the 
i prosperity and advancement of the average man : the Republican 
j party is subservient to the comparatively few who are the bene- 
! ficiaries of governmental favoritism. Wc invite the co-operation 
of all, regardless of previous political affiliation or past differ- 
I ences, who desire to preserve a government of the people by 
the people, and for the people, and who favor such an admin- 
istration of the government as will insure, as far as human 
wisdom can, that each citizen shall draw from society a reward 
commensurate with his contribution to the welfare of society. 



The Republican parly in KTrenter tliim iiii> mini, a «|s- 
tinct contrast to the Democratic party, which lms bat one 
leader and he Its master. — Hon. James S. Sherman. 



SPEECH OF WILLIAM JENNINGS BRYAN. 

At Lincoln, Nebraska, August 12, 111*08, Accepting tlie Demo- 
cratic Nomination for* tlie Presidency. 



Mr. Clayton and Gentlemen of the Notification Committee : 
I cannot accept the nomination which you officially tender, 
without first acknowledging- my deep indebtedness to the Demo- 
cratic party for the extraordinary honor which it has conferred 
upon me. Having twice before been a candidate for the Presi- 
dency, in campaigns which ended in defeat, a third nomination, 
the result of the free and voluntary act of the voters of the party, 
can only be explained by a substantial and undisputed growth 
in the principles and policies for which I, with a multitude of 
others, have contended. As! these principles and policies have 
given me whatever political strength I possess,, the action of 
the convention not only renews my faith in them, but strengthens 
my attachment, to them. 

A Platform is Binding. 

I shall, in the near future, prepare a more formal reply to 
your notification, and, in that letter of acceptance, will deal 
with the platform in detail. It is sufficient, at this time, to 
assure you that I am in hearty accord with both the letter and 
the spirit of the platform. I indorse it in whole and in part, 
and shall, if elected, regard its declarations as binding upon 
me. And, I may add, a platform is binding as to what it omits 
as well as to what it contains. According to the Democratic 
idea, the people think for themselves and select officials to 
carry out their wishes. The voters are the sovereigns ; the offi- 
cials are the servants, employed for a fixed time and at a stated 
salary to do what the sovereigns want clone, and to do it in 
the way the sovereigns want it done. Platforms are entirely in 
harmonj- with this Democratic idea. A platform announce:-; 
the party's position on the questions which are at issue; and 
an official is not at liberty to use the authority vested in him 
to urge personal views which have not been submitted to the 
voters for their approval. If one is nominated upon a plat- 
form which is not satisfactory to him, he must, if candid, 
either decline the nomination, or, in accepting it, propose an 
amended platform in lieu of the one adopted by the convention. 
No such situation, however, confronts your candidate, for the 
platform upon which I was nominated not only contains nothing 
from which I dissent, but it especially outlines all the reme- 
dial legislation which we can hope to secure during the next 
four years. 

Republican Challenge Accepted. 

The distinguished statesman who received the Republican 
nomination for President said, in his notification speech : 

"The strength of the Republican cause in the campaign at hand 
is the fact, that we represent tlie policies essential to the reform of known 
abuses, to the continuance 'of liberty and true prosperity, and that wp 
are determined, as our platform unequivocally declares, to maintain them 
and carry them on." 

In the name of the Democratic party, I accept the chal- 
lenge, and charge that the Republican party is responsible for 
all the abuses which now exist in the Federal Government, 
and that it is impotent to accomplish the reforms which are 
imperatively needed. Further. I cannot concur in the state- 
ment that the Republican platform unequivocally declares for 
the reforms That are necessary; on the contrary. I affirm that 
it openly and notoriously disappoints the hopes and expectations 
of reformers, whether those reformers be Republicans or Demo- 
crats. So far did the Republican convention fall short of its 

476 



SPEECH OF WILLIAM JENNINGS BRYAN. 477 

duty that the Republican candidate felt it necessary to add 
to his platform in several important particulars, thus rebuking 
the leaders of the party, upon whose co-operation he must 
rely for the enactment of remedial legislation'. 

As I shall, in separate speeches, discuss the leading" ques- 
tions at issue, I shall at this time confine myself to the para- 
mount q rest ion, and to the far-reaching purpose of our party, 
as that purpose is set forth in the platform. 

Shall the People Rale? 

Our platform declares that the over-shadowing issue 
which manifests itself in all the questions now under discussion 
is "Shall the people rule?" ]N T o matter which way we turn, 
no matter to what subjeet we address ourselves, the same ques- 
tion confronts us: Shall the people control their own govern- 
ment, and use that government for the protection of their 
rights and for the promotion of their welfare? or shall the 
representatives of predatory wealth prey upon a defenseless 
public, while the offenders secure immunity from subservient 
officials whom they raise to power by unscrupulous methods? 
This is the issue raised by the "known abuses" to which Mr. 
Taft refers. 

The President's Indictment Against the Party. 

In a message sent to Congress last January, President Roose- 
velt said: "The attacks by these great corporations on the 
administration's actions have been given a wide circulation 
throughout the country, in the newspapers and otherwise, by 
those writers and speakers who, consciously or unconsciously, 
i act as the representative of predatory wealth — of the wealth 
accumulated on a giant scale by all forms of iniquity, ranging 
from the oppression of the wage-earners to unfair and unwhole- 
some methods of crushing out competition, and to defrauding 
the public by stock-jobbing and the manipulation of securities. 
Certain wealthy men of this stamp, whose conduct should be 
abhorrent to every man of ordinary decent conscience, and who 
jcommit the hideous wrong Of teaching our young men that 
phenomenal business success must ordinarily be based on dis- 
honesty, have, during the last few mouths, made it apparent 
that they have banded together to work for a reaction. Their 
endeavor is to overthrow and discredit all who honestly admin- 
ister the law, to prevent any additional legislation which would 
check and restrain them, and to secure, if possible, a freedom 
from all restraint which will permit every unscrupulous wrong- 
doer to do what he wishes unchecked, provided he has enough 
money." What an arraignment of the predatory interests ! 

Is the President's indictment true? And, if true, against 
whom was the indictment directed? Not against the Democratic 
party. 

Mr. Taft Indorses the Indictment. 

Mr. Taft says that these evils have crept in during the last 
ten years. He declares that during this time some "prominent 

and influential members of the community, spurred by financial 
success and in their hurry for greater wealth, became unmind- 
ful of the common pules of business honesty and fidelity, and 
of the limitavions imposed by law upon their actions;" and 
i hat '•the revelations of the breaches; of trusts, the disclosures 
as to rebates and discriminations by railroads, the ■meumulat big 
evidence of the violation of the anti-trust laws by a number 
of corporations, and the over-issue of stocks and bonds of inter- 
railroads for the unlawful enriching of directors and for 
the pur-pose of concentrating the control of the railroads under 
one management" all these, he charges, "qu ickee.ed the eon- 

(science of the people and broughl on :i moral awakening." 

ring all this time, r beg to remind you Republican offi- 
cials presided in the executive department, tilled the cabinet, 
nominated the Srnat". controlled the Bouse of Representatives 
am! occupied most of the Federal judgeships. Four years ago 
the Republican platform boastfully declared that since 1860— 



478 8PBBCW OF WILLIAM JEWNIXGS BRYAX. 

with the exception of two years — the Republican party had been 
in control of part or of all the branches of the Federal Govern- 
ment ; that for two years only was the Democratic party in 
a position to either enact or repeal a law. Having- drawn the 
salaries, having enjoyed the honors, having secured the pres- 
tige, let the Eepublican party accept the responsibility ! 

Republican Party Responsible. 

Why were these "known abuses" permitted to develop? Why 
have they not been corrected? If existing laws are sufficient, 
why have they not been enforced? All of the executive ma- 
chinery of the Federal Government is in the hands of the Re- 
publican party. Are new laws necessary? Why have they not 
been enacted? With a Republican President to recommend, 
with a Republican Senate and House to carry out his recom- 
mendations, why does the Republican candidate plead for further 
time in which to do what should have been done long ago? 
Can Mr. Taft promise to be more strenuous in the prosecution 
of wrong-doers than the present executive? Can he ask for a 
larger majority in the Senate than his party now has? Does 
he need more Republicans in the House of Representatives, or 
a Speaker with more unlimited authority? 

Why no Tariff Reform. 

The President's close friends have been promising for several 
3 r ears that he would attack the iniquities of the tariff. We have 
had intimation that Mr. Taft was restive under the demands 
of the highly protected industries. And yet the influence of the 
manufacturers, who have for twenty-five years contributed to 
the Republican campaign fund and who in return have framed 
the tariff schedules, has been sufficient to prevent tariff reform. 
As the present campaign approached, both the President and 
Mr. Taft declared in favor of tariff revision, but set the date 
of revision after the election. But the pressure brought to 
bear by the protected interests has been great enough to pre- 
vent any attempt at tariff reform before the election ; and the 
reduction promised after the election is so hedged about with 
qualifying phrases that no one can estimate with accuracy the 
sum total of tariff reform to be expected in case of Republican 
success. If the past can be taken as a guide, the Republican 
part}' will be so obligated by campaign contributions from 
the beneficiaries of protection as to make that party powerless 
to bring to the country any material relief from the present 
tariff burdens. 

Why no Anti-Trust Legislation. 

A few years ago the Republican leaders in the House of 
Representatives were coerced by puplic opinion into the sup- 
port of an anti-trust law which had the indorsement of the 
President, but the Senate refused even to consider the measure, 
and since that time no effort has been made by the dominant 
party to secure remedial legislation upon this subject. 

Why no Railroad Legislation? 

For ten years the Interstate Commerce Commission has been 
asking for an enlargement of its powers, that it might prevent 
rebates and discriminations, but a Republican Senate and a 
Republican House of Representatives were unmoved by its en- 
treaties. In 1900 the Republican National Convention was urged 
to indorse the demand for railway legislation, but the plat- 
form was silent on the subject. Even in 1904 the convention 
gave no pledge to remedy these abuses. When the President 
finally asked for legislation he drew his inspiration from three 
Democratic National platforms and he received more cordial 
support from the Democrats than from the Republicans. The 
Republicans in the Senate deliberately defeated several amend- 
ments offered by Senator La Follette and supported by the Demo- 
crats — amendments embodying legislation asked by the Inter- 
state Commerce Commission. One of these amendments au- 
thorized the ascertainment of the value of railroads. This 



SPEECH OF WILLIAM JENNINGS BRYAN. 47$ 

amendment was not only defeated 1>\ the Senate, but it was 
overwhelming]}' rejected by the recent Republican National Con- 
vention, and the Republican candidate has sought to rescue his 
party from the disastrous results of this act by expressing him- 
self, in a qualified way, in favor of ascertaining the value of 
the railroads. 

Overissues of Stocks and Bonds. 

Mr. Taft complains of the overissue of stocks and bonds of 
railroads "for the unlawful enriching of directors and for 
the purpose of concentrating the control of the railroads under 
one management," and the complaint is well founded. But 
with a President to point out the evil and a Republican Congress 
to correct it we iind nothing done for the protection of 
the public. Why? My honorable opponent has. by his con- 
fession, relieved me of the . necessity of furnishing proof: he 
admits the condition, and he cannot avoid the logical conclu- 
sion that must be drawn from the admission. There is no 
doubt whatever that a large majority of the voters of the 
Republican party recognize the deplorable situation which Mr. 
Taft describes ; the}' recognize that the ma.-ses have had but 
little influence upon legislation or upon the administration of 
the government, and they are beginning to understand the 
cause. For a generation the Kepublican party has drawn its 
campaign funds from the beneficiaries of special legislation. 
Privileges have been pledged and granted in return for money 
contributed to debauch elections. What can be expected when 
official authority is turned over to the representatives of those 
who first furnish the sinews of war and then reimburse them- 
selves out of the pockets of the taxpayers? 

Fasting in Wilderness Necessary. 

So long as the Republican party remains in power it is power- 
less to regenerate itself. It cannot attack wrongdoing in high 
places without disgracing many of its prominent members, and 
it, therefore, uses opiates instead of the surgeon's knife. Its 
malf actors construe each Republican victory as an endorsement 
of their conduct, and threaten the party with defeat if they 
are interfered with. Not until that part}' passes through a 
period of fasting in the wilderness will the Republican leaders 
learn to study public questions from the standpoint of the 
masses. Just as with individuals "the cares of this world and 
the deceitfulness of riches choke the truth." so in politics, when 
part}' leaders serve far away from home and are not in constant 
contact with the voters, continued party success blinds their 
eyes to the needs of the people and makes them deaf to the 
cry of distress. 

Publicity as to Campaign Contributions. 

An effort has been made to secure legislation requiring 
publicity as to campaign contributions and expenditures, but 
the Republican leaders, even in the face of an indignant public, 
refused to consent to a law which would compel honest} in 

j elections. When the matter was brought up in the recent 

j Republican National Convention the plank was repudiated by a 
vote of 880 to 94. Here, too. Mr. Tai't has been driven to apolo- 

' gize for his convention and to declare himself in favor of a 
publicity law, and yet. if you will read what he says upon this 
subject, you will find that his promise falls far short of 
the requirements of the situation. lie says: 

"If I am elected President I shall urge upon Congress, with 
every hope of success, thai a law be passed requiring the tiling, 
in a federal office, d' a statement of the contributions rec< ived 
by committees and candidates in elections for members of Con- 

f grcss. and in such other elections as are constitutionally within 
the control of Congress." 

1 shall not embarrass him by asking him upon whui he banes 

his hope of success; it is certa'nlv not on an\ encouragement he 
has received from Republican leaders; It is s.iilieient to say that 
if his hopes were realized if, in spite of the adverse action of 
his convention, he should succeed in securing the enactment ot 



4S0 BPEECH OF WILLIAM JENNINGS BRYAN. 

the very law which he favors, it would give but partial relief. 
He has read the Democratic platform ; not only his lang uage, 
but his evident alarm, indicates that he has read it carefully. 
He even had before him the action of the Democratic National 
Committee in interpreting and applying that platform, and 
yet he fails to say that he favors the publication of the con- 
tributions before the election. Of course, it satisfies a natural 
curiosity to find out how an election has been purchased, even 
when the knowledge comes too late to be of service, but why 
should the people be kept in darkness until the election is past? 
Why should the locking of the door be delayed until the horse 
is gone? 

Am Election a Public Affair. 

An election is a public affair. The people, exercising the 
right to select their officials and to decide upon the policies to 
be pursued, proceed to their several polling places on election 
day and register their will. What excuse- can be given for 
secrecy as to the influences at work? If a man, pecuniarily in- 
terested in "concentrating the control of the railroads in one 
management," subscribes a large sum to aid in carrying the 
election, why should his part in the campaign be concealed until 
he has put the officials under obligation to him? If a trust 
magnate contributes $100,000 to elect political friends to office, 
with a view to preventing hostile legislation, why should that 
fact be concealed until his friends are securely seated in their 
official position? 

This is not a new question ; it is a question which has been 
agitated— a question which the Eepublican leaders fully under- 
stand — a question which the Kejmblican candidate has studied, 
and 3^et he refuses to declare himself in favor of the legislation 
absolutely necessary, namely, legislation requiring publication 
before the election. 

Democratic Party Promises Publicity. 

How can the people hope to rule if they are not able to 
learn until after the election what the predatory interests are 
doing? The Democratic party meets the issue honestly and 
courageously. It says : 

"We pledge the Democratic party to the enactment of a 
law prohibiting any corporation from contributing to a cam- 
paign fund, and any individual from contributing an amount 
above a reasonable maximum, and providing for the publica- 
tion, before election, of all such contributions above a reason- 
able minimum." 

The Democratic National Committee immediately proceeded 
to interpret and apply this plank, announcing that no contri- 
butions would be received from corporations, that no individual 
would be allowed to contribute more than $10,000, and that all 
contributions above $100 would be made public before the elec- 
tion — those received before October 15 to oe made public on or 
before that day, those received afterward to be made public 
on the day .when received, and no such contributions to be 
accepted within three days of the election. The expenditures are 
to be published after the election. Here is a plan which is com- 
plete and effiective. 

Popular Election of Senators. 

Next to the corrupt use of money, the present method of 
electing United States Senators is most responsible for the 
obstruction of reforms. For one hundred years after the adop- 
tion of the Constitution the demand for the popular election 
of senators, while finding increased expression, did not become 
a dominant sentiment. A constitutional amendment had from 
time to time been suggested and the matter had been more 
or less discussed in a few of the States, but the movement 
had not reached a point where it manifested itself through con- 
gressional action. In the Fifty-second Congress, however, a 
resolution was reported from a House committee proposing the 
necessary constitutional amendment, and this resolution passed 
the House of Representatives by a vote which was practically 
unanimous. In the Fifty- third Congress a similar resolution 



SPEECH OF WILLIAM JENNINOB BRYAN. 481 

was reported to and adopted by the House of Representatives. 
Both the Fifty-second and Fifty-third Congresses were Demo- 
cratic. The Republicans gained control of the House as a 
result of the election of 1894 and in the Fifty-fourth Cong 
the proposition died in committee. As time went on. however. 
the sentiment grew among the people until it forced a Republican 
Congress to follow the example set by the Democrats, and then 
another and another Republican Congress acted favorably. State 
after Slate lias indorsed this reform, until nearly two-thirds of 
the States have recorded themselves in its favor. The United 
States Senate, however, inpudently and arrogantly obstructs the 
passage of the resolution, notwithstanding the fact that the 
voters of the United States, by an overwhelming majority, de- 
mand it. And this refusal is the more significant when it is 
remembered that a number of senators owe their election to 
great corporate interests. Three Democratic National platforms 
— the platforms of 1900, 1904 and 1908— specifically call for a 
change in the Constitution which will put the election of 
senators in the hands of the voters, and the proposition has 
been indorsed by a number of the smaller parties, but no 
Republican National Convention has been willing to champion 
the cause of the people on this subject. The subject was 
ignored by the Republican National Convention in 1900 ; it was 
ignored in 1904, and the proposition was explicitly repudiated 
in 1908, for the recent Republican National Convention by a 
vote of 866 to 144 rejected the plank indorsing the popular elec- 
tion of senators — and this was done in the convention which 
nominated Mr. Taft, few delegates from his own State voting 
for the plank. 

Pergonal Inclination not Sufficient. 

In his notification speech the Republican candidate, speaking 
of the election of senators by the people says : "Personally, I 
am inclined to favor it, but it is hardly a party question." 
What is necessary to make this a party question? When the 
Democratic convention indorses a proposition by a unanimous 
vote, and the Republican convention rejects the proposition -by a 
vote of seven to one, does it not become an issue between the 
parties? Mr. Taft cannot remove the question from the arena 
of politics by expressing- a personal inclination toward the 
Democratic position. For several years he has been connected 
with the administration. What has he ever said or done to 
bring this question before the public? What enthusiasm has 
lie shown in the reformation of the Senate? What influence 
could he exert in behalf of a reform which his party has openly 
and notoriously condemned in its convention and to which he 
is attached only by a belated expression of personal inclination? 

The Gateway to other Feforma. 

"Shall the people rule?" Every rehiedial measure of a na- 
tional character must run the gantlet of the Senate. The Presi- 
dent may personally incline toward a reform; the House may 
consent to it, but as long as the Senate obstructs the reform 
the people must wait. The President may heed a popular 
demand; the House may yield to public opinion, but as long 
as the Senate is defiant the rule of the people is defeated. The 
Democratic platform very properly describes the popular elec- 
tion of senators as "1 lie gateway to other national reforms.'' 
Shall we open the gate, or shall we allow the exploiting interests 
to bar the way by the control of this branch of the Federal 
legislature? Through a Democratic victory and through a Dem- 
ocratic victory only, can the people secure the popular election 
enators. The smaller parties are unable to secure this 
reform; the Republican party, under its present leadership, 
is resolutely opposed to it; the Democratic party stands for 
it ami lias boldly demanded it. If 1 am elected t-> the Presi- 
dency, those who are elected upon the ticket with me will 
be, like myself, pledged to this reform, and 1 shall convene 
Congress in extraordinary session immediately after inaugura- 
anl asl;. among other things, for the fulfillment of thin 
platform pledge. 



482 SPBBCS OF WILLIAM JENNINGS BRYAN. 

House Rules Despotic. 

The third instrumentality employed to defeat the will of the 
people is found in the rules of the House of Representatives. 
Our platform points out that "the House of Representatives was 
designed by the fathers of. the Constitution to be the popular 
branch of our government, responsive to the public win," and 
adds : 

"The House of Representatives, as controlled in recent years 
by the Republican party, has ceased to be a deliberative and 
legislative body, responsive to the will of a majority of the 
members, but has come under the absolute dominion of the 
Speaker, who has entire control of its deliberations and powers 
of legislation. 

"We have observed with amazement the popular branch of 
our federal government helpless to obtain either the considera- 
tion or enactment of measures desired by a majority of its 
vnembers." 

This arraignment is fully justified. The reform Republicans 
in the House of Representatives, when in the minority" in their 
own party, are as helpless to obtain a hearing or to secure a 
vote upon a measure as are the Democrats. In the recent session 
of the present Congress there was a considerable element in the 
Republican party favorable to remedial legislation ; but a few 
leaders, in control of the organization, despotically suppressed 
these members, and thus forced a real majority in the House 
to submit to a well-organized minority. The Republican Na- 
tional Convention, instead of rebuking this attack upon popular 
government, eulogized Congress and nominated as the Republican 
candidate for Vice-President one of the men who shared in the 
responsibility for the coercion of the House. Our party demands 
that "the House of Representatives shall again become a deliber- 
ative body, controlled by a majority of the people's representa- 
tives, and not by the Speaker," and is pledged to adopt "such 
rules and regulations to govern the House of Representatives 
as will enable a majority of its members to direct its delibera- 
tions and control legislation." 

"Shall the people rule?" They cannot do so unless they can 
control the House of Representatives, and through their repre- 
sentatives in the House give expression to their purposes and 
their desires. The Republican party is committed to the methods 
now in vogue in the House of Representatives ; the Democratic 
party is pledged to such a revision of the rules as will bring 
the popular branch of the federal government into harmony 
with the ideas of those who framed our Constitution and 
founded our government. 

Other Issues will be Discussed Later. 

"Shall the people rule?" I repeat, is declared by our plat- 
form to be the overshadowing question, and as the campaign 
progresses I shall take occasion to discuss this question as it 
manifests itself in other issues ; for whether we consider the 
tariff question, the trust question, the railroad question, the 
banking question, the labor question, the question of imperialism, 
the development of our waterways, or any other of the nu- 
merous problems which press for solution, we shall find that the 
r^al question involved in each is, whether the government shall 
remain a mere business asset of favor-seeking corporations or 
be an instrument in the hands of the people for the advance- 
ment of the common weal. 

Democratic Party has Earned Confidence. 

If the voters are satisfied with the record of the Republican 
party and with its management of public affairs we cannot rea- 
sonably ask for a change in administration ; if, however, the 
voters feel that the people, as a whole, have too little influence in 
shaping the policies of the Government ; if they feel that great 
combinations of capital have encroached upon the rights of the 
masses and employed the instrumentalities of government to 
secure an unfair share of the total wealth produced, then we 
have a right to expect a verdict against the Republican party 
and in favor of the Democratic party ; for our party has risked 



SPEECH OF WILLIAM JENNINGS BRYAN. 483 

defeat — aye, suffered defeat — in its effort to arouse the conscience 
of the public and to bring about that very awakening to 
which Mr. Taft has referred. 

Only those are worthy to be intrusted with leadership in 
a great cause who are willing* to die for it, and the Democratic 
party has proven its worthiness by its refusal to purchase vic- 
tory b}- delivering the people into the hands of those who have 
despoiled them. In this contest between Democracy on the 
one side and plutocracy on the other the Democratic party has 
taken its position on the side of equal rights, and invites the 
opposition of those who use politics to secure special privileges 
and governmental favoritism. Gauging the progress of the 
nation, not by the happiness, or wealth or refinement of a few, 
but "by the prosperity and advancement of the average man," 
the Democratic party charges the Republican party with being 
the promoter of present abuses, the opponent of necessary rem- 
edies and the only bulwark of private monopoly. The Demo- 
cratic party affirms that in this campaign it is the only party, 
having a prospect of success, which stands for justice in govern- 
ment and for equity in the division of the fruits of industry. 

Democratic Party Defender of Honest Wealth. 

We may expect those who have committed larceny by law 
and purchased immunity with their political influence to attempt 
to raise false issues and to employ "the livery or Heaven" to 
conceal their evil purposes, but they can no longer deceive. The 
Democratic party is not the enemy of any legitimate industry 
or of honest accumulations. It is, on the contrary, a friend 
of industry and the steadfast protector of that wealth which 
represents a service to society. The Democratic party does not 
seek to annihilate all corporations ; it simply asserts that as 
the Government creates corporations, it must retain the power 
to regulate and control them, and that it should not permit 
any corporation to convert .itself into a monopoly. Surely we 
should have the co-operation of all legitimate' corporations in 
our effort to protect business and industry from the odium 
which lawless combinations of capital will, if unchecked, cast 
upon them. Only by the separation of the good from the bad 
can the good be made secure. 

Not Revolution, bnt Reformation. 

The Democratic party seeks not revolution, but reformation, 
and I need hardly remind the student of history that cures 
are mildest when applied at once; that remedies increase in 
severity as their application is postponed. Blood poisoning 
may be stopped by the loss of a finger today; it may cost ;ui 
arm tomorrow or a life the next day. So poison in the body 
politic cannot be removed too soon, for the evils prod (iced by 
it increase with the lapse of time. That there are abuses which 
need to be remedied even the Republican candidate admits; 
that his party is unable to remedy them has been fully demon- 
strated during the last ten years. I have such confide nee in 
tne intelligence as well as the patriotism of the people that I 
cannot doubt their readiness to accept the reasonable reforms 
.which our party proposes, rather than permit the continued 
growth of existing abuses to hurry the country on to remedies 
more radical and more drastic. 

Onr Party's Ideal. 

The platform of our party (doses with a brief statement of 

the party's ideal. It favors "such" an administration of the 

government as will insure, as far us human wisdom can, thai 

each citizen shall draw from society a reward commensurate 

'j with his contribution to the welfare of society." 

Governments are good iq^roportion as they assure to each 
member of society, so far as governments can, a return eom- 



The Divine l.nw off Hewnrd*. 

There is a divine law of rewards. When t he Creator gave 
the earth, with its fruitful soil, the sunshine with its warmth 

33 



484 SPEECH OF WILLIAM JENNINGS BRYAN. 

and the rains with their ♦Smoisture. He proclaimed, as clearly 
as if His voice had thundered from the clouds, "Go work, and 
according- to your industry and your intelligence, so shall he 
your reward." Only where might has overthrown, cunning 
undermined or government suspended this law, has a different 
law prevailed. To conform the government to this law ought 
to be the ambition of the statesman ; and no party can have a 
higher mission than to make it a reality wherever governments 
can legitimately operate. 

Justice to All. 

Eecognizing that I am indebted for my nomination to the 
rank and file of our party, and that my election must come, 
if it comes at all, from the unpurchased and unpurchasable 
suffrages of the American people, I promise, if intrusted with 
the responsibilities of this high office, to consecrate whatever 
ability I have to the one purpose of making this, in fact, a gov- 
ernment in which the people rule — a government which will 
do justice to all, and offer to everyone the highest possible stimu- 
lus to great and persistent effort, by assuring to each the en- 
joyment of his just share of the proceeds of his toil, no matter 
in what part of the vineyard he labors, or to what occupation, 
profession or calling he devotes himself. 



Protection «reates a home market, without which the cul- 
tivators of land, in America would he hut little hetter off than 
our aborigines.— Hon. J. S. Morrill. 

The Republican party will continue to he a protectionist 
party and the American people a protectionist people. And 
that protection must apply to every section, every in- 
dustry and every class. — Hon. James S. Sherman. 

We face the future with our past and present as guaran- 
tors of our promises; and we are content to stand or to fall 
by the record which we have made and are making. — Presi- 
dent Roosevelt's speech accepting' 1904 nomination. 

When in 1900 the Gold Standard was established by the 
Republican party, in spite of Democratic opposition, it com- 
pleted and perfected its record as regards our Na- 
tional honor and party honor in meeting in full every fi- 
nancial obligation. — Hon. James S. Sherman. 

We deal too much in the superlative' of denunciation and 
blind our eyes to the good that is all about us. Deep down 
under all hastily formed public opinion are the sound judg- 
ment and sober common sense of millions of sturdy and 
reasonable and far-seeing Americans who helieve in the 
strength of our institutions, in our ability to work out our 
problems, and always, in the last analysis, in our capacity 
for self-government. — Hon. George B. Cortelyou, at Urhana, 
Illinois, June 7, 1905. 

The representative government that has served us well 
from 130 years has not been for Mr. Bryan sufficiently ei- 
pressive of the will of the people. We must call upon four- 
teen million electors to legislate directly. Could any more 
burdensome or inefficient method be devised than this? I 
believe that the referendum under certain conditions and 
limitations in the subdivisions of a State on certain issues 
may be healthful and useful, but as applied to our national 
government it is entirely impracticable.— Hon. Wm. H. Taft, 
at Columbus, Ohio. 

The influence of a free press must not be impaired, nor 
must the great body of American newspapers — among the 
noblest agencies of enlightenment and civilizatictoi — be judged 
by a few who have prostituted their high calling to ignoble 
uses. — Hon. George B. Cortelyou, at Urhana, Illinois, June 
7, 1905. 

The Democrats are a parfy having no solidarity, uniting 
elements that are as unmixable as oil and water, and when 
they come to make a government, should they ever be elected 
to power, the administration would become as nerveless as 
« man stricken with paralysis, because the radical difference 
between the elements necessary fco make up the party would 
be so great as to produce perfect stagnation in legislative 
provision for the emergencies which might arise. The 
Deinocratic party to-day, as organized, is nothing but organ- 
ised incapacity. Neither element of the party -would have a 
f»ense of responsibility strong enough, to overcome its an- 
tagonism to the principles upheld by the other faction were 
it to come into power.-Hon. Wm. H. Taft, at Montpelier, 
Vermont. 



STATISTICAL STATEMENTS. 



Prices 1880 to 19Q7. 



The lig-nres presented in this table are the annual average 
wholesale price of each article in the year named. They are 
based, for the earlier years, upon the Aldrich' tables, and in the 
later years upon the quotations of the Labor Bureau of the 
Department of Commerce and Labor, and the annual averages 
are the result of the combination of a large number of quota- 
tions made at various periods during the years in question. 



Annual average of wholesale prices during calendar years. 



Articles. 



Food, etc.: 

Butter, creamery, extra lb.. 

Co nee, Rio, lair aad No. 7— lb- 

Flour, wheat bbl- 

Flour, rye bbl_. 

Fruit: 
Apples, evaporated lb- 
Currants lb— 

Raisins, California, London 

layers box— 

Lard, prime — _lb_. 

Meat: 

Beef, fresh, native sides lb.. 

Salt, extra mess bbl.. 

Ham lb— 

Pork, salt, mess bbL. 

Bacon ft.. 

Molasses, New Orleans, 

prime gal- 
Rice ib- 

Salt _— bbL. 

Spices: 

Nutmegs lb-. 

Pepper 

Starch, pure ft_. 

Sugar: 

96° centrifugal lb_. 

Refined, granulated lb- 
Tallow —lb- 
Farm produ 

Wheat, cash bush.. 

Wheat, No. 2, red win- 
ter bush. 

Wheat, contract grades 

cash bush-. 

Corn, No. 2, cash bush.. 

Oats, cash bush- 
Rye, No. 2, cash bush- 
Barley, by sample bush.. 

Flaxseed, No. 1 bush-. 

Cattle: 

choice to extra.100 lbs_. 
good to choice-100 lbs.. 



1880. 



Dollars. 

0.2023 

. 1513 

8.9000 

4.9880 

.1433 
.0593 

2.2875 
.0750 



.0991 
13.3100 



. 3500 
.0725 
.7500 

.8850 
.1417 
.0313 

. 0870 

.i>J72 



.100 lbs- 

. lot) lbs. 



Steers, 

Steers, 
Hogs: 

Hea vy 

1 ight . 
Sheep: 

Native 100 lbs. 

Western 109 Ibs. 

Hld js, green , salted, pack- 

beavy native steers lb. 

Hay, timothy, No. 1 ton. 

Hops. New York State, 

choice lb- 
Cotton, upland, middling... Ib. 
Wool: 

Ohio medium fleece, 

Ofro, One fleeced, scoured .lb. 
OU ' blr.g: 

Bags, .bush.. A; loskeag car-h- 
and shoes: 

brogans „paff- 

Wen's split bool do:', pah s 
I'a soljd grain slv 
OochBO prints yd. 



L.0275 
.1881 

fcl.500 

185 



1890. 



Dollars. 

0.227G 

.1793 

5.1856 

3.3646 

• .1136 
.0478 

2.3604 
.0633 

• .0688 
6.9596 

.099) 
12.1502 

.0603 

.3542 
.0605 
.7921 

.6317 
.1151 
.0516 

.0516 

.0616S 
.0460 

.8933 

.983 

.3950- 
.3106 
.5147 
.5062 



1.8697 
4.1375 



3.9260 



1.6644 






L1089 



.61 13 



.1594 



1.0-500 
17.000 



1900. 



Dollars. 

0.224a 

.0822 

3.8423 

3.4250 

.061') 
.0720 

L.5203 
.0690 

.0801 

9.7538 

.10-25 

.0752 

. 4775 

.054ti 

1.0 J10 

.2601 

.12 91 
.0500 

.01572 

.0485 

.7040 

.801 

.7010 
.3811 

.2271 
.".177 

1.6223 

5.7827 

5.0815 

,1194 
L1.567S 

.1488 
.09600 






1903. 



Dollars. 

.0559 

4.3303 
3.1479 

.0611 
.0176 

1.4458 
.0877 

.0784 

9.0673 

.1271 

16.6514 

.0959 

.3546 

.0536 
.6140 

. 128.1 

.0507 

.03720 
.01641 
.0510 



.853 

.5194 

1.0171 

6.0541 
8.7101 

jam 

,1123a 






1907. 



Dollars. 

O.Z/Oi 

.0658 

1.8.35 
4.6021 

.0813 
.0703 

1.6271 
.0428 

.0881 

.1303 

.0954 

.4088 
.0531 

.7J31 



.OWl 
,0d00 

.4651 
.0621 

.9073 



.5280 
. 4501 



1.1808 



6.5 142 









.14*5 



.11878 






486 STATISTICAL STATEMENTS. 

Annual average of wholesale prices — Continued. 



Articles. 



1S80. 



1890. 



1900. 



1903. 



-yd. 

-ton. 
-ton. 



Carpets: 

Ingrain, 2-ply, Lowell yd— 

Wnton, live-frame Bigelow_yd— 
Cotton thread, 6-cord, 200 
yards, J. & P. Coats— spool— 

Denims, Amoskeag yd— 

Dniluigs, Stark A yd— 

Ginghams, Amoskeag : yd— 

Pnnt cloths, 28-inch, 64 

by 64 yd— 

Shirtings, bleached, 4-4 

i''ruit or loom yd— 

Shirtings, bleached, 4-4 

Lonsdale yd— 

Tickings, Amoskeag, A. 

C. A. yd— 

Women's dress goods: 
Cotton warp alapaca, 22 

in. Hamilton yd— 

Cotton warp cashmere, 

22 in. Atlantic I 1 yd— 

Cotton warp cashmere, 

2T in. Hamilton yd— 

Cashmere, all wool, At 

lantic J 

Fuel and lighting: 

Coal, anthracite stove 

Bituminous 

Metals and implements: 

Nails, cut 100 lbs.. 

Wire 100 lbs- 
Barbed wire, 

galvanized 100 lbs.. 

Pig iron, No. 1 foundry— .ton- 
Steel rails ton- 
Bar iron, best rehned 

(Philadelphia) lb- 
Copper, sheet lb- 
Quicksilver lb- 
Lead, pig lb- 
Lead pipe —.100 lbs- 

Saws, hand, Disston's doz_. 

Shovels, Ames' No. 2 doz_ 

Spelter (Western) lb- 
Lumber and building materials: 
plain M. feet- 
Pine boards, white M feet- 
Shingles, white pine AL 

Doors, pine each- 
Lime, common bb!_ 

Brick, common domestic M_ 

Cement Rosendale bbl_ 

Rope, manila lb- 
Putty , lb- 
Carbonate of lead in oil lb- 
Turpentine, spirits of gal- 
Shingles, cypress, d M_ 

Drugs and chemicals: 
Alcohol gal- 
Brimstone, crude ton- 
Glycerin, refined lb- 
Linseed oil, domestic, raw_gal_ 
Opium, natural (cases) lb- 
Quinine oz_ 

Sulphuric acid lb- 
Furniture: 
Chairs, bedroom, maple— doz. 

Chairs, kitchen doz_ 

Tables. kitchen doz_ 

Glassware: 

Tumblers, Vz pint doz_ 

Pails, - wooden doz_ 

Tubs, wooden nest of 3. 

Miscellaneous 
Rubber, Para lb_ 



Dollars. 

.8767 
2.6750 

.041250 
.1469 
.0806 
.0,581 

.0431 

.1621 

.0950 

.1588 

.1067 



.1450 



3.9625 
5.1125 



28.500 
67.5000 



.2900 

.4138 

.0172 

6.5825 

14.040 

10.0300 

.0575 

33.0000 

37.0000 

2.3750 

1.8750 

.8875 

7.0000 

1.0500 

.1550 

.0306 

.0770 



2.1025 

27.7500 

.1925 

.7025 

6.6S75 

2.9500 

.0100 

8.000 
4.5000 
15.000 



1.4500 
1.4000 



.8500 



Dollars. 

.5160 

1.920 J 

.0315 
.1175 
.0640 
.0625 

.0334 

.0845 
.0845 
.1200 

.0735 
.1813 



.3479 



3.7108 
2.9875 



2.2875 



18.4083 
31.7792 

.0205 
.2275 
.7300 
.0440 

5.4000 
14.400 

7.8700 
.0554 

37.8750 

44.0833 

3.8417 

1.3750 

.9792 
6.5625 
1.0542 

.1494 
■ .0175 

.0638 

.4080 
8.35 

2.0717 

21.1458 

.1767 

.6158 

2.6208 
.3275 



7.000 
4.2000 
15.000 

.1800 
1.5917 
1.6500 

.8379 



Dollars. 

.4920 

1.8720 

.0372 
.1073 
.0542 
.0515 

.0308 

.0753 

.0731 

.1084 

0711 

.1642 



.3459 

3.9451 
2.90B3 

2.2500 
2.6333 

8.3942 

19.9800 
32.2875 

.0196 
.2067 
.6769 
.0445 

5.1208 
12.600 

9.1200 
.0442 

40.8333 

57.5000 

4.0000 

1.5900 

.6833 

5.2500 

1.0167 

.1320 

.0190 

.0625 

.4771 

2.85 



21.1458 
.1515 
.6292 
3.2000 
.3325 
.0120 

8.000 
5.2080 
15.600 

.1800 
1.4917 
1.4417 

.9817 



Dollars. 
.5136 

2.0080 

.0372 
.1127 
.0581 
.0550 

.0321 

.0767 

.0755 

.1104 



1679 



.3320 



4.8245 
4.4376 



2.1958 


2.1625 


2.0750 


2.1167 


2.7375 


2.6342 


19.9158 


23.8950 


28.0000 


28.0000 


.0200 


.0211 


.1917 


.2792 


.6342 


.5429 


.0428 


.0552 


5.1958 


6.7050 


12.600 


12.95 


8.0200 


7.84 


.0558 


.0617 


44.8333 


55.2083 


80.0000 


c 


a3.6500 


C 


1.7292 


1.8842 


.7875 


.9492 


5.9063 


6.1563 


.8896 


.95 


b .1146 


.1290 


.0140 


.0120 


.0615 


.0897 


.5715 


.6341 


2.5667 


4.2250 


2.3958 


2.5229 


22.3333 


21.4983 


.1446 


.1383 


.4167 


.4342 


3.0813 


4.9458 


.2525 


.1775 


.0127 


.0100 


7.917 


10.0000 


5.0000 


5.791V 


15.600 


18.00 


.1767 


.1500 


1.5875 


1.9703 


1.4500 


1.60 


.9054 


1.0833 



a Michigan white pine 16 inches long, XXXX. b 7-16 inch, 
d Prices at Southern mills. 



c Not stated. 



The attitude of the government toward combinations of 
capital for the redaction in the cost of production should 
ho exactly the same as toward the combinations of labor 
for the purpose of bettering the conditions of the wage- 
worker and of increasing his share of the joint profit of 
eaiKital and labor. They are both to be encouraged in every 
wiiy so long as they conduct themselves within the law.— 
Hon. Wm. H. Taft, at Columbus, Ohio. 



STATISTICAL STATEMENTS. 



487 



FOREIGN COMMERCE UNDER THE McKINLEY, WILSON AND 
DINGLE V TARIFF LAWS. 



Values of Imports and Exports of Merchandise under the 
McKinley Tariff Act. 





Imports. 


Exports 
domestic and 

foreign. 


October 1, 


1890, 
181)1, 
1892, 
1893, 


to September 
to September 
to September 
to August 31, 


30, 1891__ 




$824,716,8*2 
933, 280,79a 
830,1 .0,318 
603,eU5,&'crt; 


(923, 362,015 
998,226,775 

87>;,^2,43, 


October 1, 


30, IS)' 




October 1, 


30, 1898- 

1894a-. 




October 1, 




790,700,509 














a Eleven 


months. 







Values of Imports and Exports of Merchandise under the 
Wilson Tariff Act. 



September 1, 1891, to August 31, 1895 $759,108,116 i $806,070,059 

September 1, 1895, to July 31, 1890 687,6)5,637 837,s02,5U 

August 1, 1896, to July 31, 1897 760,290,019 i 1,051,379,735 

I I 



Values of Imports and Exports of Merchandise under the 
Dingley Tariff Act. 



August 1, 1897, 

August 1, 1898, 

August 1, 1899, 

August 1, 1900, 

August 1, 1901, 

August 1, 1902, 

August 1, 1903, 



to July 31, 1898. 

to July 31, 1899. 

to July 31, 1'KXL 

to July 31, L901- 

to July 31, 1902- 

to July 31, 1903. 

to July 31, 1991- 



August 1, 1901, to July 31, 1905. 

August 1, 1905, to July 31, 190S. 

August 1, 1906, to July 31, 1907. 

August 1, 1907, to June 30, 1908- 



s.ir:,35'> 

706,265 

853,499 

892,591 

909,386 

1,028,759 

980,093 

1,130,831 

1,244,612 

1,450.450 

1,069,719 



,276 
,852 

,132 
,908 

,387 
,186 
,491 
,731 
.289 
,839 



81, 232, 903, 411 
1,249,424,423 
1,400.009,719 
l,496.7<'vl,694 
1.361,057,518 
1,423,164,317 
1,451,237, 485 
1,511,268,608 
1,747.027,353 
1,897,707,339 
1,732,223,811 



Excess of Exports of Merchandise under McKinley Act. 

MerchandlM. 

October 1, 1890, to September 30, 1891 $98,645,173 

October 1, 1891. to September 30, 1802 160,915.977 

October 1, 1802, to September 30, 1891 46,182,116 

October 1, 1893, to August 31, 1891 186,840,«13 



Excess of Exports of Merchandise under Wilson Act. 



September 1, 1801, to August 31, 1895 • 

September 1, 1895, to July 31, 1896 

August 1, 1896, to July 31,1897 - 2S8,088,11« 



$47, 561,664 
150,106,881 



Excess of Exports of Merchandise under Dingley Aot. 

August 1, 1897, to July 31, 1898 - - $019, 544, 186 

insist 1, 1898, to July 31, 1899 - - 513. 158.571 

August 1, 1899, to July 31, 1900 - 5irt,.->10,5t7 

August 1, 1900. to July 31. 1901 - 661,169,786 

August 1, 1901, to July 31, 1902 - 451.871,131 

August 1, 1902, to July 31, 1<>03 -- 3«>l, 105,131 

August 1, 1903, to July 31. 1901 -- 474.143,994 

August 1, 1901, to July 31. 1905 ... 410.438,874 

August 1, 1905, to July 31, 1906 - St> 7 • ''^ ' ?2i 

August 1, 1906, to July 31, 1907... - - Hil25M2 

August 1, 1907, to June 30, 1908. — - — - «62,!W6,fl6 



Annual Average Excess of Exports of Merchandise. 

Under MoKinley Act of 1890 $ !;M?MI2 

tJnder Wilson Acl of L894 - ---- l?i'?il'2f 

Under DlngUjr Act of 1897 ■ » . "! ■,» 

34 



4M 



STATISTICAL STATEMENTS. 



Table of Annual Averages of National Financial and Industrial 
Conditions during the administrations of Presidents Cleve- 
land, MeKinley, and Roosevelt. 

[Annual average for periods named.] 
(Compiled from the Statistical Abstract of the United States.] 





1898-1896 


1897-1900 


1901-1903 


1901-1907 


Interest-bearing debt, million dollars 


898 


941 


944 


895 


Annual interest charge 


27.9 


37.5 


27.6 


23.3 


Annual interest per capita 

Treasury receipts, net ordinary, 


$9.41 


$0.43 


$0.35 


$0.28 










millions __, 


831 


459 


570 


586 


Government expenditures, ordinary. 










millions ± 


365 


475 


496 


574 


Money in circulation, millions . 


1,592 

$23.29 


1,859 


2^264 


2,851 


Money in circulation, per capita 


$25.13 


$28.61 


$31.60 


Bank clearings, total, millions 


31,760 


73,300 


114,900 


138,^23 


Bank clearings, New York, millions- 


20,086 


45,131 


74,202 


££,655 


Bank deposits, total, millions 


4,787 


6,223 


9,139 


11,667 


Bank deposits, savings, millions 


1,818 


2,169 


2,760 


3,374 


Depositors in savings banks, millions 


4.9 


5.6 


6.8 


7.9 


Industrial life insurance in force, 










millions- > 


793 


1.217 


1,723 


2,299 


Life insurance, total, in force. 










millions 


5,635 


7,394 


10,051 


13,206 


Imports, total, millions 


758' 


732 


917 


1,192 


Exports, total, millions 


856 


1,251 


1,430 


1,651 


Excess of exports over imports, 










millions _ 


99 


5^9 


513 


459 


Exports of manufactures, millions. 


211 


275 


462 


640 


Imports of raw materials for manu- 










facturing, millions 


179 


218 


294 


400 


Gold: Exces* imports ever ex- 




ports, millions ; . 


•» 


50 


4.5 


99 


Exports to Asia and Oceania, 










millions ... - 


34 


79 


93 


132 


Crude rubber Imports, lbf.. million* 
Pig tin Imports, lbs., millions 


88 


45 


53 


65 


42 


63 


80 


88 


Tin plate imports, lb*., millions 


494 


164 


142 


138 


Coal, tons, millions » ., 


165 


210 


270 


338 


Pig iron, tons, millions „. 

Steel rails, tons, milliont. 


7.96 


12.21 


17.27 


22.61 


1.27 
4.96 


1.75 
9.23 


2.73 
14.21 


3.15 


Steel, total tons, millions 


29.09 


Tin plate, manufactured, lbs., 




millions _ 


226 


698 


857 


1,141 


Minerals, total value, millions 

Cotton, total value, millions 


575 


731 


1,319 


1,629 


266 


300 


331 


584 


Beet sugar, 1,000 tons 

Wool, lbs., millions . 


26 


54 


170 


320 


271 


272 


302 


296 


Raw silk, imports, lbs., millions... 

Cotton used in manufacturing, 

bales, millions 


8.02 


11.09 


13.30 


18.79 










2.51 


3.38 


3.85 


4.71 


Animals on farms, total value, 










millions 


2,050 


1,942 


3,034 


3,526 


Horses on farms, total value, 










millions 


709 


512 


1,005 


1,606 


Cattle on farms, total value, 










millions __. . _ _ 

Sheen on farms, total value, 
millions _ 


879 


1,060 


1,325 


1,374 










87 


97 


161 


180 


Net earnings of railways, millions. .. 
Dividends paid by railways, millions 


33 


416 


540 


705 


83 


107 


168 


227 


Passengers carried, millions 

Freight carried 1 mile, billion tons.. 


558 


535 


650 


760 


89 


100 


155 


158 


Railways placed under receivership, 










miles .. 


11,474 


1,697 


193 


1,214 


Railways sold under foreclosure, 




miles _ 


7,951 


5,125 


795 


395 ' 


Railways built, rallee 


1,900 

$6.85 


2,891 


4,439 


5,100 


Average receipts per ton mile 

Tonnage of vessels passing through 
Sault Ste. Marie Canal, millions.. 


$0.76 


$0.75 


$0.78 










14 


20 


28 


38 


Failures, liabilities of, millions 

Post office receipts, mtUlone . 


230 


128 


128 


141 


77 
$0.70 


92 
87.6 


122 
83.1 


162 


Wheat, average price oi, per bushel 
Corn, per busnel 


99.1 


44.4 
31.3 


39.0 
27.5 


45.5 
40.8 


59.7 


Qats, per buihel 

Homestead eatries, number 


41.1 


6,174 


6,323 


14,241 


12,944 



•Excess exports. 



The general tariff policy to which, without regard to 
chancres in detail, I helieve this country to he irrevocably 
committed is fundamentally based upon ample recognition of 
the difference in labor cost here and abroad.— President 
Roosevelt at New York, November 11, 1902. 



STATISTICAL STATEMENTS. 481 

Value of exports ef principal farm products from the United 
States under three tariffs. 

[Compiled from reporta of Bureau of Statistics. ] 



Cotton ,_ 

Breadstufts 0*11) 

Meat and dairy prod 

uota (all) 

Flour 

Wheat 

Lard - 

Bacon _„, 

Animals (all). 

Oattle 

Corn 

Beef . 

Oil cake 

Seeds 

Cheese — 

Pork _... 

Clover ilea 

Hide* 

Mops ._ .«,«. 

Tallow 

Flaxseed 

Barley , , 

Sugar and tfielassea.. 

Oats 

Vegetable! 

Hay 

Broom earn 

Rye ,. 

Tobaooo, unmrd 

Frulte and nuts 

Cotton seed oil 



MoKinlay 
law, flsaal 
year 1804. 



$2i9, sco, m 

145,270,648 

09,271,770 

59,407,041 

40,089,800 

31,338,948 

35, 718, Ml 

13,461,922 

30,811,184 

28,499,889 

8,807,288 

7,942,221 

7,1$0,381 

5 t 139, 888 

4,540,851 

8,972,494 

3,844,2*8 

2,766,184 

2,446,2(4 

2,879,714 

1,718,668 

2,027,984 

1,744,482 

890,684 

210,748 

128,538 

24,085,234 

2,424,239 

6,008,403 



Wilson law, 

oaierdar 
year lstJ. 



Ifttt 

40,^8,547 
87,848,788 
87,411.914 
89,791,114 
28,887,701 



27,807,780 
85,741,700 
7,031,248 
1,083,094 
8,401,117 
4,430,185 
l,12o,81» 
1, Mi, 947 
1,745,94* 
1,807,380 
31,000 
1,403,838 
l,800,m 

.AS 

781,346 

179,880 

724 

84,707,588 

8,480,878 

0,429,808 



BingUy law, 
year 1800. 



mu 




►,7*9,400 

858,992 

1S5.0O8 

8,838,078 

28,417,218 

7,»7, m 

18,077,910 



Dlnglay 
luw, 1807. 



808,802,098 

18, 178, SOt 

00.814, 3*3 

87,497,080 

88,470,072 

41,243,8*0 

84,i 877, 302 

44,861,810 

81, 831 » 208 

80,415.027 

10,091,609 

2,012,620 

10,89^,404 

489,104 

1,700,032 

0,881,872 

7,102,680 

7,090,308 

4,550.295 

8,170,619 

1.070,881 

4,007,833 

976,287 

203,812 

882,016 

88,377,390 

17,888,432 

17,074,403 



Conditions in States tarried oy MoKinley and Bryan, respectively, 

in 1900. 



Area square miles 

Population 

Illiterate native white nnpn- | 

In tion 10 years old aad OTW J 
oxne ' 
ilienil ▼stlue of real eat ate. 
if personal 1 

__ j 

Value of farm landi, includ- \ 

in? buildfn'fe, etc., ) 

TaJut of fans oioduflti 1899— 
Total value 

in 190-') 

Wages and salaries paid In 

manufacturing: in 1900 

Value of product of mines, 

oil and gas wells, etc. 

Sayings banks deposits In 1900 
Number of depositors in ) 

savings banks J 



McKJnlej OJtataa. 



Par «e»t 

of total. 



I,880,7fl0 
49,390,585 

569,484 
<?189. 248, 785 
181,588,838,094 

56,038,998,020 

88,137,088.878 
<U, 274,824, 002 
$2,892,173,872 

8018,501,477 

$2,486,212,780 

5.088,908 



80 

04.1 

77 

74 

87.0 

87.2 

88.8 

70.8 
99.8 
90.0 



Bryan Statas. 



1,884,200 
80," 



210,640 
1.870.04S 

883,812,484 
84,870,900,871 

88,789,316,088 
82,122,040,851 

91,4*7,984,098 

$1,610,617,137 

8817,007,817 

$101, 848, 000 

$18,918,792 
07,701 



Per aent 
of total. 



48.8 

88.8 



28 

28 

88.8 

12.8 

11.7 

90.0 
0.0 

1.1 



Neither our nation nor anr other con stand to* rulneus 
polioy of rendluatlng it* buftlness t© ragieal changes In «a» 
tariff at abort intervals — President Roosevelt at I,ogaa»port. 
lad., September 28, 100». 

Every one who fcnows anything nteont the msDsgemiat ef 
railroads kneWs that there has beea a revolution fn respeet 
to their obedience to the law. No longer are special 
privileges gruntod to the few— ao longer are secret rebates 
extended to build up the monopoly of the trusts. rhe rail- 
roads are operating within the law. and the railroad dlree- 
tors an* onfeers and stockholders ought to Hae up and call 
blessed the men who are responsible for tge "("-age of the 
Rate bill—Ken. Win. it. Taft. at Kansas City. Me. 



4*0 



STATISTICAL STATEMENTS. 



Clearing-house returns of the United States. 
[From the Statistical Abstract of the United States.] 



Year. 


New York clear- 
ing house. • 


Clearinghouses 

vt the 
United states. 


1886 _ 

1887 


$33,374,682,216 

34,872,848,786 
30,863,686,609 
34,796,465,529 
37,600,686,572 
34,053,698,770 
36,279,905,236 
34,421,379,870 
24,230,145,368 
28,264,379,120 
29, 350, 89 i, 884 
31,337,760,948 
39,853,413,948 
57,338,230,771 
51,964,588,564 
77,020,672,494 
74,753,189,436 
70,833,655,940 
59,672,796,801 
91,879,318,369 
103,754,100.091 
9.5,315,421,238 


$48,211,643,771 

52 126 701 488 


1888 


48,750,886,813 
53,501,411,510 
58, 845, 27),- 505 
57, 298, 73 <~ 938 


1889 - — 

1890 


1891 _. 


1892 _- 


60,883,-572,438 


1893t 


58, 880, 68', 455 


1894t— : 

lS95t 


45,028,490,746 
50,975,155,016 


1896f- 


51,935,651,733 
54,179,515,030 

65,924,820,769 


1897 


1898 


1899 

1000 _ 


88,828,672,533 
84,582,450,081 
114,819,792,086 
116,021,618,003 
113,963,298,973 
102,356,435,047 
140,592,087,616 
157,681,259,999 
154,602,515,258 


1901 -. 


1902 — 


1903 


1904 - . 


1905 _ 


1906 


1907 - 







w {Democratic and low tariff years. 

Deposits in banks of all kinds in the various States, 1S92, 1S96, 

1903 and 1901. 

[From Official Reports of the Comptroller of the Currency.] 



States. 


1892. 


1896. 


1903. 


1907. 




$65,S50,798 

80,435,557 

33,7i8,J04 

616,598,531 

99,086,388 

165,415,581 

1,417,556,006 

98,891,294 

423,548,016 

10,121,401 

83,219,217 

15,670,372 

29,693,509 

11,037,899 

8,461,372 

9,849,188 

15,363,576 

5,740,494 

7,661,424 

7,093,530 

26,303,565 

34,120,225 

4,563,594 

49,603,578 

24,543,584 

175,952,224 

54,206,771 

226,801.889 

107,704,951 

' 79,738.823 

76.795.49S 

85,460.606 

117,478,165 

8,278,548 

7,551.266 

43,770.311 

38,51.4.219 

16,515,264 

3.167.147 

33.827,434 

3,101.956 

723,068 

309.119 

17,807,584 

12,617,373 

198.0^4,951 

?.. 006,700 

9.213.285 

112.320 

758,212 


$75,804,424 

71,921,727 

40,572,077 

705,759,418 

110,535,846 

188,712,003 

1,604,236,105 

115,583,033 

459, 041, 8 18 

7,019,958 

87,354,355 

18,677,413 

28,243,822 

17,745,571 

9,722,451 

9.890,679 

10,952,349 

5,531,365 

6,858,065 

8,908,660 

25,306,751 

31,747,215 

3,555,383 

41,502,038 

21,722,670 

174,954,981 

52,386,403 

213,798,711 

103,670,827 

68,863,503 

68,494,642 

78,439,707 

117,150,075 

7,032.369 

7,216,612 

30,865,894 

30,529,487 

16.800,029 

2,650,866 

29,966,835 

2,311.296 

7^5.519 

701,202 

9,228.8'8 

9,262,021 

202,874.270 

1,969,292 

6,366,103 

579,731 

1,518,074 


$112,447,981 

78,453,488 

56,3a6,990 

938,627,298 

155,644,733 

264,131,827 

2,861,024,291 

254,960,170 

1,011,917,132 

19,592,430 

144,703,712 

37,916,326 

59,993,002 

50,387,589 

28,224,670 

16,581,452 

43,053,919 

16,535,101 

19,963,480 

29,174,325 

63,450,271 

80,389,641 

14, 4' 8, 572 

68,501.184 

62,183,036 

448,120,819 

141,601,752 

522,889,978 

218,432,300 

156,140,971 

135,564,105 

211,033,378 

298.747,005 

22,147,222 

27,801,725 

80,565,404 

84.055.110 

32,023,515 

7,821.629 

69.739.278 

7.2<9,032 

18.677.080 

8,433.6'>0 

'3,?i2.953 

26 039,463 

406, r v32,313 

7,819.030 

33.526,202 

4,107.492 

8,458,306 

893,913 


$141,477,154 


New Hampshire 


99,0)7,933 
71,710,4.0 


Massachusetts 

iinode Island 


1,121,038,643 
198,307,824 
327,6 4,301 




3,684,312,192 




371,304,160 


Pennsylvania 


1,284,624,823 
25,147,574 




180,957,508 


District of Columbia- 


50,779,3)5 
102,765, '2i 


West Virginia 

North Carolina 

South Carolina 


81.182,817 
54,780,972 
41,951,5X5 
78,082,130 




34,905-043 




54.701,372 




47,765,622 




93,272,311 




178,771,888 




27,065,411 




115,516,514 




94,685.356 


Ohio 


642,190,577 




231,652,032 


Illinois 


767,156,586 




301,921,708 


Wisconsin 


218,707,334 
203,826,720 




300,895,924' 




370.526.1P6 


North Dakota 

South Dakota 


41,977,114 

52,333,698 

136,753,097 




138,556,276 




45,5^7,516 




13,«76.5r7 


Colorado 


103,309,307 
13.^91,935 




36,470,609 


Indian Territory 


21,222,158 
87,427,5-8 




61,991.594 




fl 1 9, 1*9.315 




24,378,404 


Utah 


44.9VL.688 




9.60«,340 




17,7^0,107 


Alaska 


2,759,640 


Total 


$240,870,488 


$231,828,339 


$540,640,702 jl3.077.330, 40« 



Aggregate, United States only. $o 'm.ff* -2*52. 
Annual increase in ftid'vMnni d-n-^'-c i *~" ^ 

Annual increase in individual deposits, 1896-1903, $857,000,0 



STATISTICAL STA TEMEM'S. 



491 



Value of the Principal Farm Crop* of the United Slut*-* i n 
1S89 nnd 1907 Compared m ith 1 so.'— Farm Value of Tea 
Principal Crops Increased More Than Jjtl.OtMMMM >,<»><> Slnee 
1805. 

This table shows the value of the principal farm crops of the 
United States in 1S95, 1S99, and 1907. 

The figures are from the Department of Agriculture, except 
those of flaxseed. 





1895. 




1809 




1807. 




Crop. 




Value 




Value ; 




Value 




Total value. 


per 


Total value. 


per i 


Total value. 


per 






unit, a 



, $0,253 




unit, a 1 




uult. a 


Corn 


$=544 ,985.534 


$629,210,110 


$0,303 


$1,337,000,000 


10.516 


Wheat 


237,938,998 


..509 


319,546,250 


.584 


554,000,000 


.874 


Oats 


163,655,068 


.19-0 


198,167,975 


.249 


335,000.000 


.443 


Rye 


11,064,826 


.440 


12,214,118 


.510 


23.000.000 


.731 


Barley 


29,312,413 


.337 


29,594,251 


.403 


102,000,000 


.660 


Potatoes .- 


78,984,901 


.266 


89,528,832 


.3*0 


184,000,000 


.617 


Cotton 


293,358.352 


.076 


o76, 556,253 


.070 


57a, 000, 000 


.104 


Hay 


393,185,615 


8.35 


411,926,187 


7.27 


744,000,000 


11.C8 


Tobacco -- 


35,574,220 


.069 


57,000.000 


.090 


76,000,000 


.109 


Flaxseed — 


12.000.000 


.750 


20,000,000 


1.25 


25,000,000 


.955" 


Total 


1,800.960.427 




8,143,542,988 




00.000 





a Corn, wheat, oats, rye, barley, potatoes, and flaxseed, bu-hels ; hay, 
ton ; cotton and tobacco, pounds. 



Production, farm value, and value per bushel of corn, wheat, and 



oats, 1S85 to 190: 





Corn. 


Wheat. 


Oats. 






Total. 


Total 




Total 




Year. 




Farm 




Farm 




Farm 




Production 


\ alue 

per 
busiiel 


Produc- 
tion. 


value 

per 
bushel 


Produc- 
tion. > 


value 

per 

bushel 






Dec. 1, 




Dec I. 




Dec. 1. 




Bushels. 


Cents. 


Bushels. 


Oents. 


Bushels. 


Cents. 


1885 


1,936,176,000 


32.8 


357,112,000 


77.1 


629. 10 '.000 


28.5 


1888__ 


1.665,441,000 


36.6 


457,218,000 


68.7 


624 . 1 


29.8 


1887 


1,456,101,000 


44.4 


456,829,000 


68.1 


659,6^,000 


30.1 


1888- -- 


1,987,71)0,000 


34.1 


415,868.000 


92.6 


701.; 


27.3 


1S3) 


2,112,892,000 

1,489,970,000 


28.3 
.50.6 


490,560,000 
.. 12,000 


69.8 
83.8 


751. 515,i>0i 
621,000 


22. 1 


1890 


42.4 




2,060.154,000 


40.6 


611,780.000 


83.9 


.u.ooo 


81 . 5 


tfflB 


1,828,404,000 


39.4 


51.5,949.000 


62 . 4 


661,035.000 


31.7 


i .,. |«j 


1,619,498,13] 




H.725 


53.8 




2'. i.4 


1S!U. - 


1,212,770,052 


45.7 


400,267,416 


40.1 


662." 


82.1 


1S!>5 


2,151,138,580 


25.3 


167,102,947 


50.9 






18M 


2,233,875,165 


21.5 


427.684, 346 


72.6 


707,3 


- 




1,902,967,933 


26.3 


W0. 1 


80.8 


767,800 


'1.2 


1898 


1,924,184,660 


28. 7 


675.1 1 


58.2 






ISfXI. 


2,078,143,933 


30.3 


R17, 




'77,713 




1H00 


2,105,102,516 


35.7 


■ 


61. 9 


B09,1 




1901 


1,522," 


00.6 






908,724 




11102 


,648,312 


10.3 


670." 


63.0 






1908L- 


2 244,176,925 












MXll 


2,467,480,984 


Ml 










1905 


2.707. 


41.2 


692." 




"T.1D7 






Ill '1 




785.84 


08.7 


901.9 


81.7 







51.6 


634,087.000 




754,41 





If we aaanme control over ■ people merely la the apli 
of conquest and merely to e\trn«l our control ami mere 
from the lust of power, then \% e nun be properly denoonc 

aa impprlnlNt.i: hut if we SMHme control <*\ <rr n people f 
the heneflt of that people nnd \* « I h the pur pour of dOTOlo 
i nK them <o n sel f-aove rn i ni; cnpacltT. Mini with llir I n I «• 

tion of alviner then the riciu to become Independent vrh< 
they *hali ahonr themselves tit. thru the charge that jre ■ 
'iD-VrinlMt i» utterly wlthont fnuntlat Ion.— Hon. Wat. 
Tuft, at Cleveland, Ohio. 



492 



STATISTICAL STATEMENTS. 



Live stock and dressed meats, Chicago to New York — Average 
freight rates, in cents, per 100 pounds. 





Cattle. 


Hogs. 


Sheep 


Horses 

and 
mules. 


Dressed 
beef. 


Dressed hogs. 


Year. 


Refrig- 
erator 
cars. 


Com- 
mon 
cars. 


1880 _- 


55 
35 
36 
40 
31 
31 
, 
33 
22 
25 
23 
27 
28 
28 
28 
28 

m 

28 
28 
25 
28 
28 
28 
28 
28 
28 
28 
28 


43 

31 
29 
32 
28 
23 
30 
32 
26 
30 
2S 
; 30 
23 
20 
30 
30 
30 
30 
30 
25 
30 
30 
30 
30 
30 
30 
30 
30 


6* 

61 

53 
50 
44 
43 
42 
40 
31 
30 
30 
30 
30 
30 
30 
30 
30 
30 
30 
25 
30 
30 
30 
30 
30 
30 
30 
$0 


60 
(0 
60 
60 
60 
60 
60 
60 
60 
60 
60 
GO 
60 
60 
60 
60 
60 
§0 
69 
80 
60 
60 
60 
10 
60 
69 
69 
69 


88 

56 

57 

64 

51 

54 

61 

62 

46 

47 

39 

45 

45 

45 

45 

45 

45 

45 

45 

40 

45 

42.9 

41.8 

45 

45 

45 

45 

45 






1881 






1882 







1883 . 

1884 _._ 




1885 







18S6 




1S87 _ 


59 

46 

47 

39 

45 

45 

45 

45 

45 

45 

45 

45 

40 

45 

42.9 

41.2 

45 

45 

45 


54 


1888 

1889 


44 
45 


1890 

169] 


- 39 
45 
45 


1392 


1893 

1894 _, 

1895 _ 


45 
45 
4o 


1896 

1897 

1898 

1899 

190O 

1901 

1902 

1903 _ 

1904 

1905 _ 


45 

45 

45 

40 

45 

42.9 

41.2 

45 

45 

4* 


1906 


45 45 


1907 


45 


45 



Relative conditions of prosperity in the manufacturing and non- 
manufacturing sections of the United States, respectively* 

[From Census of 1900.] 



Per cent ©f total population of United State* 

Per cent of total area of United States 

Gross value of manufactures In 1900 

Per cent of total manufactures produced ^P 

section ..— . 

Salaries and wag«a paid in manufactures in 1900 
Number of person* employed in manufactures 

in 1900 

Average value per acre of all farm lands 

Average value per acre of all lands and buildings 
Average value per acre of land (improved 

only) and buildings 

Average value of buildings per improved acre- 
Average value of implements owned per im- 
proved acre 

Average value per head of milch cows 

Average value per head of horses 

Average value of all farm products, per im- 
proved acre — , - — 

Average value of farm product*, per person 

engaged -- 

Deposits in savings banks, total 

Deposits in savings banks, per capita 

Deposits in all banks, total 

Deposits in all banks, per capita 

Bank clearings, total 

Bank clearings, average per capita 

Banking resources, total 

Banking resources, average per capita 

Real and personal property, assessed valuation 

Real and eersenaJ property, per capita 

Salaries paid teachers In public schools 

Newspapers published, number 

Newspapers, aggregate circulation 



Manufacturing 
section. 



50.9 

14.1 

110,021,719,461 

77 
82,194,988,683 

4,437,714 
$24.07 
$32.59 

$53.60 
$15.25 



$2.54 


$1.47 
$27.46 


$33.62 

$60.87 


943.32 


$141.06 


$101.40 


$619.25 


$394.50 


$2,200,439,838 


6J949.108.047 


$56.90 


$6.67 


$5,949,984,845 


$1,884,666,895 


$153.80 
976,356,970,422 


$37.10 


$8,225,479,659 


$1,973.50 


$290.40 


$8,613,200,000 


$2,167,500,000 


$222.65 


$5S.10 


$23,415,800,899 


$10,388,667,238 


$603.2-5 


$278.50 


$85,234,961 


$52,452,785 


9,151 


9,075 


6,168,125,616 


2,090,023,133 



Other States. 



49.1 

85.9 
$2,988,818,053 

23 
9536, 471, 656 

1,273,917 
$12.78 
$14.85 

$31.65 

$5.54 



♦Manufacturing section includes area north of the Potomac and Onio and 
east of the Mississippi, viz., the New England and Middle States, and Mary- 
land, Dittrlet of ©ahunbia, Ohio, Indiana, Illinois, Michigan, and Wisconsin. 



STATISTICAL STATEMENTS. 



493 




i2g 



494 



STATISTICAL STATEMENTS. 



Progress of manufacturing in the United States, 1850 to 1905. 
[From official reports of the Census Office.] 



Years. 



Number 
of estab- 
lish 
ments. 



1850 . 
1860 _ 

1870 . 
1880 . 
1800 - 
1900*. 
1905* . 



123,025 
140,433 
252,148 
253,852 
355,415 
512, 254 



Average 
number 

of wage 
earners. 



957.059 
1,311,216 
2,053,996 
2,732, 51)5 
4,251,613 
5,308, 406 
6,157,751 



Wages paid. 



$236,755,464 

373,878,986 

775,584,343 

947,953,795 

1,891,228,321 

2,322,333,877 

3,016,711,706 



Val-eof 
product. 



$1,019,106,616 
1,885,851,676 
4,232,325,442 
5,369,579,191 
9,372, 137, 28* 
13,004,400,143 
16, 866., 706, 985 



♦Exclusive of statistics for governmental establishments and for Hawaii. 
Figures for 1905 include neighborhood industries and hand trades, estimated 
by Census Office at two billions of dollars. 

Production of principal groups of manufactures in the year 1905. 

Food and kindred products _. $2,815,234,900 

Iron and steel and their products 2,176,739,726 

Textiles 2,147,441,418 

Lumber and its manufactures 1,223,730,336 

Miscellaneous industries — 911,604,87.! 

Metals, other than iron and steel 922,262,455 

Paper and printing 857,112,256 

Leather and its finished products 705,747,470 

Chemicals and allied products — 1,031,965,263 

Vehicles for land transportation 6 \%, 924, 442 

Liquors and beverages 501,266,605 

Clay, glass, and stone products ___ 391,280,422 

Tobacco _ 331,117,681 

Shipbuilding .._ 82,769,239 

The manufacturing Industries gave employment in 1905 to 6,157,751 wage- 
earners, earning $3,016,711,706; 566,175 officials and clerks earning $809, 200, 251 
In 533,769 establishments. 



Production and average prices of middling cotton, and prices of 
the staple manufactures of cotton, in the New York market 
each year, from 1880 to 1907. 

[From the Statistical Abstract.] 



Calendar Year 


3s 

u 


Middling cotton 
per pound, b 


go 
ho 

a 

-a. 

£*> 
% p. 


95 

fee 

r* 

■0 3 

cS >> 

00 


u i) i> 


3 

1* 

C u 

# >> 
O . 

a (o 
a ft 
Ji 

ents 
7.41 
7.00 
6.50 
6.00 
6.00 
6.00 
6.00 
6.00 
6.50 
6.50 
6.00 
6.00 
6.25 
5.25 
4.90 
5.25 
4.66 
4.70 
3.96 
4.25 
5.00 
4.62 
5.00 
5.00 
5.00 
4.75 
5.12 
6.00 


da 

T ° 
c© 


1880 

1881 

1882 _ — 


Bales 

5,761,000 

6,606,000 

5,456,000 

6,950,000 

5*713,000 

5,706,000 

6,575,000 

6,499,000 

7,047,000 

6,939,000 

7,297.000 

8,674,000 

9,018,000 

6,664,000 

7,532,000 

9,837,000 

7,147,000 

8,708,000 

11,216,000 

11,256,000 

9,422,000 

10,339,000 

10,768,000 

10,674,000 

10,002,000 

13,65 4,000 

11,234,000 

13,540,000 


Cents 
11.51 
12.03 
11.56 
11.88 
10.88 
10.45 
9.28 
10.21 
10.03 
10.65 
11.07 
8.60 
7.71 
8.56 
6.94 
7.44 
7.93 
7.00 
5.94 
6.88 
9.25 
8.75 
9.00 
11.18 
11.75 
9.80 
11.50 
12.10 


Cents 
8.51 
8.51 
8.45 
8.32 
7.28 
6.75 
6.75 
7.15 
7.25 
7.00 
7.00 
6.83 
6.50 
5.90 
5.11 
5.74 
5.45 
4,73 
4.20 
5.28 
6.05 
5.54 
5. '48 
6.25 
7.13 
7.00 
7.25 
7.62 


Cents 
8.51 
8.06 
8.25 
7.11 
6.86 
6.36 
6.25 
6.58 
6.75 
6.75 
6.75 
6.41 
5.60 
5.72 
5.07 
5.69 
5.48 
4.75 
4.10 
5.13 
5.95 
5.48 
5.52 
6.37 
7.31 
7.00 
7.37 
7.62 


Cents C 
12.74 
12.74 
12.95 
12.93 
10.46 
10.37 
10.65 
10.88 
10.94 
10.50 
10.90 
10.64 
10.25 

9.75 

9.50 

9.85 

9.50 

9.25 

8.00 

9.50 
10.75 
10.25 
10.50 
10.75 
10.50 

9.00 
10.93 
13.00 


Cents 
4.51 
3.95 
3.76 


1883 


3.60 


1884 


3.36 


1885 


3.12 


1886 

1887 


3.31 
3.33 


1888 __ - 

1889 -— 


3.81 
3.81 


1890 - 

1891 

1892 _ 


3.31 

2.95. 
3.39 


1893 _ 


3.30 


1894 

1895 


' 2.75 
2.86 


1896 


2,60 


1897 - 


2.48 


1898 


2.06 


1899 _ - 


2.69 


1900 

1901 


3.21 
2.84 


1902 -- 


3.11 


1903 


3.25 


1901 __ — 

1905 

1906 — 

1907 


3.4 4 
3.13 

3.6v! 
4.62 



a Years ending August 31. Compiled by Mr. A. B. Shepperson, of New York, 
b Including 1881 and since, the price of standard drillings are net; raw cot- 
ton prices art also net for the entire period. 



STA T I STIC A J, ST A TE VESTS. 



495 



Import prices. 
[Represents priees in foreign countries.] 



Articles. 






Mi 


rob— 






1897. 


1M1S. 


10110. 


1904. 


1IMW. 


1907. 


Chemicals," drugs, etc.: 








Bark, cinchona, etc lb. 


$0,043 


$0.09!) 


10.108 


$0,152 


10.085 


$0,120 


Gums: Camphor, <yude.lb_ 


.239 


.171 


.291 








Potash, nitrate of lb. 


.020 


.022 


.027 


.027 


.033 


.020 


Quinia, sulphate of, etc.o;:. 


. 1 52 


.227 


.328 


.232 


.131 


.217 


Sumac, ground lb- 


.015 


.016 


.023 


.015 


.015 


.021 


Cotton, raw 


.112 


.092 


.130 


.189 


. 151 


.207 


Manufactures of: Cloth, 














not bleached sq. yd. 


.089 


.076 


.094 


.112 


.123 


.115 


Fertilizers: Phosphates, 


. 












crude ton. 





2.46 


5.08 


6.21 


5.90 


10.75 


Fibers, vegetable, etc.: 














Flax ton- 


210. ->4 


295.66 


296.18 


258.76 


278.79 


265.80 


Hemp ton. 


126.00 


138.41 


133.(15 


150.42 


176.80 


174.55 


Istle or tamplco fiber. ..ton. 


49.9") 


40.71 


73.30 


9o. 00 


89.71 


101.17 


Jute ton. 


29.82 


24.03 


38.59 


18.37 


64.25 


82.34 


Manila ton. 


79.67 


80.64 


135.84 


200.72 


183.88 


213.71 


Si^a! grass ton. 


59.85 


84.47 


166.23 


155.91 


148.70 


144.07 


Mnnufactures of:* 














Cables, cordage, etc.lb. 


.18) 


.295 


.817 


.615 


.285 


.806 


Kides and skins, other than 














fur skin?: 














Goatskins lb. 


.220 


.231 


.272 


.273 


.300 


.320 


All other, except hides of 














cattle lb. 


.108 


.152 


.174 


.152 


.182 


.237 


Hides of cattle lb. 




.117 


.130 


.133 


.146 


.15) 


India rubber lb- 


r~~5oi 


.586 


.660 


.695 


.766 


.7.-)' 


Iron and steel and manufac- 














tures of: 














Pig iron ton. 


22.90 


25.80 


36.21 


17.47 


28.81 


23.04 


Tin plates, terne plates, 














etc. lb. 


.023 


.022 


.on 


.027 


.030 


.031 


"Wire, and articles made 














from lb- 


.051 


.087 


.001 


.070 


.0-1 


.06") 


Silk, raw lb- 


2.87 


3.26 


4.63 


3.45 


3.25 


4.53 


Sugar; Not above No. 16— 














Beet ' lb. 


.017 




.021 


.015! 






Cane and other lb. 


.020 


7622 


.027 


.0101 


"""6202 


"""16207 


Above No. 16 lb. 


.024 


.021 


.027 


.031 


.032 


.088 


Tin in bars, blocks, pigs, 














etc. lb 


.128 


.135 


.251 


.273 


.342 


.411 


Wood: Boards, planks, et.\ 














M ft 


10.27 

.171 


9.00 
.169 


12.04 
.239 


15.50 
.188 


17.23 
.243 


18. "16 


Wool: Glass 1— clothing. _. lb- 


•1 - -, 


Class 2— combing lb. 


.200 


.234 


.212 


.206 


.288 


'30; 


Class 3— carpet lb- 


.111 


.003 


!6o7 


.114 


.133 


. 1 12 


Manufactures of: ClothsJb. 


.367 


.869 


1.22 


1.01 


1.09 


1.0) 


Zinc or spelter: In ' blocks. 














pigs and old lb. 


.033 


.039 


.013 


.052 


.036 


.086 


•Includes thr 


ead and 


twine. 








The well-being: of the wag 


c-wor 


ker ii 


a priii 


n e c n .« 


ildera- 


Hon of our entire policy of 


peon 01 


nic le 


BTislati< 


>n. — l*r« 


'siden t 


Rooseveh'n Annual Message 


. Tift 


y-seve 


nth (< 


r»ngfres« 


4. first 


session. 












Th present bnslncss systi 


m of 


the c< 


>untry 


rests 


>n the 


protective tariff and any n 


(tempt 


to c 


ban fire 


it to 


a free 


trade basis will certainly lea 


il to dl 


saster 


.— Iton. 


Wm. 1 


1. Taft, 


at Columbus, Ohio. 












To Increase production 1 


lerc. 


divers 


ifv mi 


r pro* 


net i a e 


enterprise*, enlarge the fieli 


1 and 


increi 


ikc the 


d «» m 11 


nd I'm 


American workmen: what 


A m e 1 


■lean 


CM II I 


>ppo.«c 


these 


worthy and patriotic object 


*f— Me 


ECinle; 


'. 






Let us keep steady heads i 


nil st« 


•udy Ii 


en ris. 


The e 


tun t r y 


i Is not K<)iii» backward, but 1 
'not been destroyed by the *1« 


"orwn 1 


•d. V 


nerlca 


1 ener 


;y hiiH 


inn* ' 


f the 


past. — 1 


'reside 


lit Me- 


Kin'ev before Manufacturer 


h' ci a 


b, I'h 


lladelp 


hln. .1 


nu- '_*. 


1S«>7. 












It Is not safe for fhe bod 9 


l>ol il 


le (hii 


t (lie |i 


o\\ er 1 


rlslna 


from the mnniigeiiicu I of « 


'norm 


MIS O 


.•*%> ol 


lea fa 


r< n »• es 


should be continued from >■ 


-lie en 1 


ion (1 


Ue 11 ei 


*at Ion 


in I lu- 


hand* of n few, and efforts 1 


» > la •» 


. VThll 


■Ii nrc 


not co 


ll tlwen - 


lory, to divide these fortune 


S 11 II (1 


to ri'( 


luee II 


e moll 


\ e lo r 


•ocnmnlatlnff them arc prop* 


»? a nil 


state 


siaanll 


Ue 11 nd 


vrlth- 


out the slightest savor of mi 


totalis 


in or 


il nil reli 


> . — lloi 


. \\ m. 


H. Taft, at Columbus, C 


niio. 













496 



STATISTICAL STATEMENTS. 



Total values of imports entered for consumption and duties col- 
lected thereon from 1316 to 1907. 

[from Statistical Abstract.] 











Average ad va- 


Duty 
col- 
lected 

per 
capita. 




Year 

ending 


Total 


Per 

cent 

of 

free. 


Amounts 

of duty 

collected. 


lorem rates 
of duty on- 


Im- 
ports 


June 
80- 


Dutiable 


Free and 
dutiable 


per 
capita. 




Dollari. 




Dollars. 


Per cent. 


Par cent. 


Dollars. 


Dollars 


1877 


439,829,389 


32.62 


128,428,343 


42.89 


26.68 


2.77 


9.49 


187S „ 


488,422,488 


32.24 


127,195,150 


42.75 


27.13 


2.67 


9.21 


1S79 


439,292,374 


32.45 


133,395,436 


. 44.87 


28.97 


2.73 


8.99 


1880 


627,555,271 


33.15 


182,747,654 


43.48 


29.07 


8.64 


12.51 


1881 


850,618.999 


31.18 


193,800,880 


43.20 


29.75 


3.78 


12.68 


1882 


716,213,918 


29.42 


216,138,91* 


42.66 


30.11 


4.12 


13.64 


1888 


700,829,673 


29.52 


210,637,293 


42.45 


29.92 


3.92 


13.05 


1884 


887,575,389 


31.15 


190,282,836 


41.61 


28.44 


3.47 


12.16 


1885 


879,580,054 


33.28 


178,151,601 


4.5.88 


30.59 


3.17 


10.32 


1883 . 


625,308,814 


33.83 


189,410,448 


45.55 


30.13 


3.30 


10.89 


1887 


683,418,981 


. 34.11 


814,222,310 


47.10 


31.02 


3.65 


11.65 


1S88 


712,248,626 


34.27 


216,042,256 


45.63 


29.99 


3.60 


11.88 


1889 


741,431,398 


34.61 


220,576,989 


45.13 


29.50 


3.80 


12.10 


1899 .__ 


773,674,812 


34.39 


226,540,037 


44.41 


2.). 12 


3.62 


12.35 


1891 _.__ 


854,519,577 


45.41 


216,885,791 


46.28 


25.25 


3.40 


13.38 


1883 


8ia,601,345 


58.30 


171,124,270 


48.71 


21.26 


2.68 


12.50 


1893 . 


844,454,583 


52.60 


199,143,678 


49. 5S 


23.49 


1.00 


12.73 


1894 


686,614,420 


59.53 


129,558,892 


30.06 


20.85 


1.92 


9.41 


1895 


731,162,090 


51.55 


149.450,608 


41.75 


20.23 


1.17 


10.81 


1896 


759,694,084 


48.56 


157, 013,. 506 


39.95 


20.67 


2.23 


10.81 


1897 


789,251,030 


48.30 


172,760,361 


42.17 


21.89 


2.41 


11.02 


1898 


887,153.700 


49.65 


145,438.385 


48.80 


24.77 


1.9t 


8.05 


1899 


685,441,892 


48.72 


202,072,050 


52.07 


29.48 


2.72 


9.22 


1900 


830,519,252 


44.16 


229,300,771 


49.24 


27.62 


3.01 


10.88 


1901 j 


807,763,301 


41.98 


233,536,110 


49.64 


28.91 


8. OJ 


10.58 


1902 


89a, 793,784 


44.01 


251,453,155 


49.78 


27.95 


1.18 


11.39 


1903 


1,007,960,110 


43.38 


280,752,418 


49.03 


27.85 


1.49 


12.54 


1904 J 


981,822,559 


46.25 


258,222,243 


48.78 


26.30 


1.16 


12.01 


1905 


1,087,118,133 


47.56 


258,426.295 


45.24 


23.77 


1.11 


13.08 


1908 


1.213,417,849 


45.22 


293,910,398 


44.16 
42.55 


24.22 


8.49 


14.41 


1007 


1,415,402,285 


45.35 


329,480,048 


23.28 


3.84 


16.49 



Where possible, it is always better to mediate before the 
strike begins than to try to ai'bitrate when the fight is on 
and both sides Lave grown stubborn and. bitter.— President 
Roosevelt at the L,abor Day picnic, Chicago, Sept, 3, 1900. 

The Republican party was dedicated to freedom forty- 
four years ago. It has been tlie party of liberty and emanci- 
pation from that hoar; not of nrofession bxit of performance. 
—President McKInley, at Canton, Jnly 12, 1900. 

I think it would be entirely right in this class of oases, 
to amend the law and provide that no temporary restrain- 
ing order should issne at all until after notice and a hear- 
ing. • Then the court could be advised by both sides with 
reference to the exact situation, and the danger of issuing 
a writ too bread or of issuing a writ without good ground 
woald generally be avoided.— Hon. Wm. H. Taft, at Cooper 
Union, New York City. 

But the most gratifying feature of this picture of bank- 
ing and financial conditions in our country is the fact that 
deposits in savings banks— those institution* for the safe- 
keeping of the earning of, workinginen and widows jmd 
orphans and children of the eowntry — have increased from 
$550,000,000 in 1S70 to $3, 500,000,000, in 1908. What say you 
business men of the future of a country whose working- 
men and working .women and children have three and a 
half billion dollars laid aside for a "rainy day."- O. P. Austin. 

Efficient regulation is the very antidote and preventive 
of socialism and government ownership. The railroads, 
until now, have been permitted to wield -without any real 
control the enormously important franchise of furnishing 
transportation to the entire country. In certain respects 
they have done a marvelous work and have afforded trans- 
portation at a cheaper rate per ton, per mile, and per passen- 
ger, than in any country in the world. They have, how- 
over, many of them, shamefully violated, the trust obligation 
they have been under to the public of furnishing equal facil- \ 
Hies at the same price to all shippers. They have been j 
weighed in the balance and found wanting. The remedy 
for the evils must be radical to be eifective. If it is not so, } 
then we may certainly expect that the movement toward j 
government ownership will become a formidable one that j 
cannot be stayed.— Hon. Wm. H. Taft, at Columbus, Ohio. 



Merchandise imported into, exported from, and retained for con- 
sumption in the United States, and duty collected per < 
1811 to 1967. 

[From the gtatiatlcal Abstract.] 





taports. 


Exporti of 

domestic 
Merchandise. 


Retained for 


consumption, 




put capita. 




per capita. 






ill 

• t * 
a .© a 
6** c , 


ft 
i 1 


1 

i*. 


__ * « o 


1 

8 


V 

"3 u 

3 c 


Raw wool 


Tear. 


fe 






f "eS 

£ o e * 
£ ate o 

*3 




|S3S 


* 


a O 

£ 


— — > 

3 "a 


i 

1 










P. cent. 


Lbs. 


Bush. 


Lbs. 


]*.eent. 


isn . 


H2.85 


81.12 


$10.83 


20. SI 


14.10 


4.69 


5.73 


29.4 


itfa i 


13.80 


9.23 


10.55 


20.18 


11.10 


4.79 


6,75 


45.3 


1873 




4.44 


12.12 


20.01 


15.19 


4.61 


1.67 


33.2 


1374 


13.26 


8.75 


13.81 


18.81 


13.69 


4.46 


4.81 


17.5 


1875 


11.97 


3.51 


11.88 


19.42 


11.00 


i.SS 


5.23 




1376 


10.29 


8.22 


11.84 


80.14 


14.77 


4.89 


6.21 


18.8 


1177 


6.49 


t.77 


11.72 


14.45 


14.08 


8.01 


5.16 


16.3 


»:~~-- 


9.21 


1.87 


14.80 


20.41 


13.71 


6.721 


6.28 


16.9 


8.90 


2.78 


14.88 


19.18 


15.90 


1.58 


1.03 


14.2 


1888 


12.51 


1.84 


18.48 


14.78 


18.94 


1.86 


1.11 


31.9 


1881 


i2.es 


8.78 


17.23 


15.80 


19.61 


6.80 


1.66 


17.8 


is» ; 


13.61 


4.12 


13.97 


22. 00 


16.15 


4.68 


6.86 


19. 


1888 


18.86 


8.83 


14.98 


19.95 


20.80 


6.64 


6.62 


18.7 


1814 


12.18 


8.47 


13.20 


21.51 


10.80 


1.64 


6.85 


20.6 


1885* 


10.32 


8.17 


12.94 


20.67 


15.16 


6.77 


6.69 


18.0 


1886» 


10. S3 


8.30 


11.60 


21.87 


19.69 


4.87 


7.39 


28.9 


1887».„ 


11.85 


8.85 


11.98 


21.21 


16.84 


S.17 


6.88 


27.4 


1888* 


11.88 


8.60 


11.40 


22.53 


18.89 


8.02 


6.31 


23.9 


1S89 


12.10 


2.80 


11.02 


22.71 


17.22 


1.84 


6.83 


31.8 


1898 


12.35 


8.82 


18.80 


21.18 


18.50 


6.09 


6.03 


27.0 


1891 


13. 88 


8.40 


13.83 


21.83 


22.88 


4.59 


6.44 


30.8 


18M 


12.50 


2.88 


15.81 


15.01 


21.58 


8.04 


6.75 


33.1 


1893t 


12.73 


8.00 


12.08 


11.57 


17.84 


4.80 


7.10 


35.7 


1894t 


9.41 


1.82 


18.85 


23.31 


16.45 


8.44 


5.18 


14.2 


189§f 


10.81 


1.17 


H.51 


25.84 


«2.75 


4.59 


7.89 


40.0 


189ft 


18.81 


l.tt 


18.29 


29.89 


18.07 


4.85 


6.98 


45.9 


1807t 


11.82 


1.41 


14.42 


30.15 


18.77 


•8.95 


8.40 


57. S 


1888 


8.05 


1.80 


10.59 


18.81 


25.78 


4.20 


5.44. 


32.8 


1898 


8.82 


1.72 


10.80 


81.89 


*7.ff 


6.09 


4.51 


19.8 




W.88 


8.81 


n. n 


85.30 


22.87 


4.74 


5.72 


84.4 


1901 ^ 


19. IS 


1.08 


tt.ti 


81.08 


15.04 


8.95 


1.18 


24.9 


19« 


11.88 


3.17 


17. 18 


33.48 


25.65 


1 6.10 


6.07 


34.1 


1908 


12.54 


2.4f» 


17.32 


33.61 


24.64 


8.81 


8.74 


87.8 


1904 , 


12.01 


8.18 


17.58 


36.47 


15.28 


6.33 


5.36 


37.0 


1905 


13.88 


3.11 


17.94 


40.98 


88. 07 


6.15 


6.31 


45.5 


If* 


11:11 


8.49 


80.40 


88. 06 


26.40 


7.07 


8.88 


39.6 


1»8T 


8.84 


11.00 


80.88 


29.85 


8.88 


1.01 


40.0 



The national credit If laaeparaftly associated with onr 
national growth una prosperity, ana if yon teach the latter 
witk an unfriendly liana yen will seriously Injure the for- 

»&*.— Hon. XV. MoKinler, In Home of Representatives, April 
, 1»7B. 

It 1« probable that Ohe stringency which reached its 
height an. that Auric day af 6>©taber 24 might In part have 
boon alleviated had we had a currency which could auto- 
matically enlarge Itaolf to meet the tremendous demand of 
a day or a week or a month, while public confidence rvus 
being* restored. — Hon. Wro. H. Taft. to Merchants and Manu- 
facturers' Association, Boston, Mass. 

It is oasy and it often seems expedient to yield to the out- 
ory af the hour: but What the thoughtful people of America 
demand of an oAolal is that he shall set his face like Hint 
against it if his oonaolence or his experience convinces him 
that It Is a mistaken cry.— Hon. Cleerge B. Cortelyoa, at 
Urban*. Illinois. June 7, lt>05. 

No perty in the whale history of the country has ever 
taken more decided steps to restrain the abases of Irre- 
sponsible corporate wealth and power than has the Tlc- 
gubllcan party, both in the executive and In the legislative 
ranches of the Government during the last eight years. 
No party has ever shown greater independence of corporate 
control and corporate influence than the Republican ma- 
jority in the House and Senate and the Executive.— Hon. 
Wm. H. Taft. at Greeasboro, Worth Carolina. 



Imports and exports of the United States. 



Fiscal years. 


Imports. 


Exports. 


Excess of 
imports. 


Excess of 
exports. 


1790 _ 


$23,000,000 
91, 252.76S 
85,400,000 
74,450,000 
90,189,310 
62,720,')5 r 3 
136,731,295 
176,579,154 
130,472.803 
95,970,288 
156, 196.956 
98,25^,708 
122.957,544 
J6, 075, 071 
42,133,464 
102,604,606 
113,181,322 
117,911,065 
122,421,349 
118.638,644 
111. 206. 199 
173,509,526 
210,771,429 
207,440,398 
233,777,265 
297,803,794 
257,808,708 
310,432,310 
348,428,342 
263,338,654 
331,333,341 
353,616,119 
289,310,542 
189,356,677 
243,335.815 
316,447,283 
238 ,745,1 580 
434, 812., 066 
395,761,096 
357,136,440 
417.506,379 
435,958,408 
520.223,684 
626,595,077 
642,136,210 
567,406,342 
533,005,436 
460,741,190 
451,323,126 
437,051,532 
445,777,775 
667,954,746 
642,664,628 
724,639,574 
723,180,914 
667,697,693 
577,527,329 
635,436,136 
692,319,788 
723,957,114 
745,131,652 
789,310,409 
844,916,196 
827,402,462 
866,400,922 
654,994,622 
731,969,965 
779,724.674 
764,730,412 
616.049,654 
697,148,489 
849,911.184 
823,172.165 
903,320.9(8 
1,025,719,237 
991,087.371 
1,117,513,071 
1,226,562,146 
1,434,421.425 
1,185,900,000 


. $20,205,156 

70,971,780 

66,757,970 

69,691,669 

90,738,333 

71,670.735 

115,215,802 

124.33S.704 

111,443,127 

104,978,570 

112,251,673 

123,668,932 

111,817,471 

99,877,995 

82,S25,689 

105,7 15, S-J2 

106,040,111 

10:), 583, 2 48 

156,741,598 

138,190,515 

140,351.172 

144,375,726 

188,915,259 

166,984,231 

203,489,282 

237,043,761 

218,909,503 

281,219,423 

293,823,760 

272,011,274 

292,902,051 

333,576.057 

219,553,833 

190,670,501 

203,964,447 

158,837,988 

166,029,303 

348,859,522 

294,506,141 

281,952,899 

286,117,697 

392,771,768 

442,820,178 

444,177,583 

522,479,922 

586,283,040 

513,442.711 

540,384,671 

602,475,220 

694,865,766 

710,439,441 

835,638,658 

902, 377, 3 '-6 

750,542,257 

823,839,402 

740,513,609 

742,189,755 

679,524,830 

716,183,211 

695,954,507 

742,401,375 

857,828,684 

884,480,810 

1,030,278,148 

847,665,194 

892.140,572 

807,538,185 

882,606,938 

1,050,993,558 

1,231,4^,330 

1,227,023,302 

1,394,483,082 

1,487,764.991 

1,381.719,401 

1,420,141.679 

1,460.827,271 

1,518,561.666 

1,743,864,500 

1,880,851,078 

1,859,000,000 


$2,794,844 

20,280,988 

18,6 VI. 030 

4,758,331 




1800 _ 




1810 




1820 




1825 _ 


$549,023 
8,949,779 


1830 




1835 — 


21,518,493 
52,240,450 
19,029,676 


1836 _. _ _ 




1837 - 




1838 


9,008,282 


1839 - 


44,245,283 


1840 


8S, 410, 226 


1841 


11,140,073 


1842 


3,802,924 

40, 392,, 225 

8,141,226 


1843 





18(4 , 


1845 : 

1846 


7,144,211 
8,330,817 


1847 y- 


84,317,249 


1848 


10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54.604.5S2 


18491 




1850 




1851 




1852 




1853 




1854 




1855 




1856 




1857 




1858 


8,672,620 


1859 _.. 


38,431,290 
20,010,062 
69,756,709 


1860.__ 




1861 




1862 


1,313,824 


1863 ... 


39,371,368 

157,609,295 

72,716,277 

85,952,514 

101,254,955 

75,483,541 

131.388.6S2 

43,186.640 

77,403,503 

182, '17.491 

119,6.56,288 


1864 




1865 




1866 




1867 




1868 




1869.. 




1870 




1871 




1872 




1873 




1874 


18,876.6)8 


1875 


19,562,725 


1876 . __ _._ 


79,613.481 
151,152,0)4 


1877 




1878 _ 




257,814,231 
26*4, 661 666 


1879 




1880 




167,683,912 
259,712,718 


1881 





1882 


25,902,683 
100,658,488 
72,815,916 


1883 




1884 ._ 




1885 




164,662,426 


1886 




44,088,694 


1887 


"""2800". 807" 
2.730,277 


23,863,443 


1888 


1889 




1890 


68,518,275 


1891 





39,564,614 


1892 


202,875,686 


1893 ... 


18,735,728 


1894 — 


237,145,950 


1895 — 





75,568,200 


1896 ... 


102,882,264 


1897 




286,263,144 


1898 ... 




615,432,676 
529,874,813 
544,541.898 
664,592,826 
478,398,453 
394,422,442 


1899 _. 




1900 _.. 




1901 _. 




1902 ... 




1903 ... 




1904 




469,739,900 


1905 




401.048 595 


1306 




517.302 054 


1907 




448,429 653 


1908a 




674,000,000 








•Total.. 


$40,233,847,823 


$46,326,439,955 




$6,092,592,132 







* The totals include the figures of all omitted years and are thus the totals 
of all years from 1789 to 1907. 
a June, 1908, estimated. 



STATISTICAL STATEMENTS. 



Receipts and expenditures in the United States. 



FlBcal years. 


Net orniuary 
r< oelpts 


Net ordinary 
expenditures. 


teas 

i > eel pis. 


Excess of 

expendi- 
tures. 


1800 _ ... 


$10,815,749 
9,384,214 
17, a 10,670 
24,814,117 
19,480,115 
43,5 > 

52,555,039 
49,846,816 
61,587,032 
73,800,341 
65,350.575 
74,056.699 
68,965,313 
46,655,366 
52,777,108 
56,054,600 
41,476,299 
51,919,261 
112,091,946 
243,412,971 
322,031,158 
519,919,564 
462,846,680 
376,431,451 
357,188,256 
395,959,834 
371,131,105 
364,604,230 
322,177,674 
290,941,091 
284,020,771 
200.066,585 
231,000,642 
257,446,776 
272,322,137 
333,526.501 
300, 782,203 
403,525.250 
'393,257,582 
31S.510.S70 
323.600.706 
336,430,727 
371,403,278 
379,266.075 
387.050,059 
403,0«0,983 
392,612, '17 
351.937,784 
385,819,629 
207,722,019 
313,300,075 
326,976,200 
317.721.705 
40 5. 321. 335 
515.560,620 
567.240,852 
587,685,338 
562,47^,233 
.560,396.674 
540,631,749 
511,274,685 
.504,454.122 
663,140,334 
509,S95,763 


$10,813,971 

8,474,7.53 

18, 2 85 

15,142,108 

24,311,518 

40,948 

47,751., IT5 

44,390,252 

47,7*3,9-9 

55,038, 155 

58,630,663 

68,726,350 

67, 63 4, 400 

73,982,493 

68,993,600 

63,200,878 

66,6.50,213 

469,570,212 

718,73 1., 276 

864,969,101 

1,295,000,290 

519, 022., 356 

346,729,326 

370,339,134 

321. 100,503 

203.657,005 

2&3. 160,394 

270,559,696 

285,239,325 

301,238,800 

274,623,303 

265,101,085 

241,334.475 

2%,964>,327 

266,917,884 

26 (.8 17. 637 

259,651.639 

257,981,410 

265.408,138 

211,126,244 

260,226,935 

212.483,139 

267,032,180 

250.653.950 

281,996,616 

297,736.. -187 

355,372.685 

345,023,831 

383,477.051 

367,525,280 

896,195,298 

352.179,416 

365,774,160 

448,368,583 

605.072.190 

487,718,792 

509,967,353 

471,190,858 

506,099,007 

.582,402,321 

.567.278.013 

.568,734,799 

57S.90a.748 

659,552,125 


- 




1810 




1820 


$444,865 


1830 


ft, 79 




1810 _ 


4,334,403 


1850 


2,614 
4,803 
5,45 

13, 8 13, 043 
18,761, 386 
6,719,912 
5,330,349 
1,330,904 


1851 — 




1852 




1853 ... 




1S54 _ 




1855 _ 




1856 . 




1857 _. 




1S58 _ 


27,327,127 


IS 59 . 




16,216, 192 


1880 ... 




7., 1 II 


1861 




25,173,914 


1862 




417. 


1863 





606,* 


1564 




621.5Vj.130 


1B85 




973,068,132 




927,208 

116, 117. 35 l 

6.095.320 

35,, 007, 658 

102,302,820 

91,270,711 

94,134,534 

36.933.SW 




1367 








1869 








1871 








1873 ... 




1874 


1,297,709 


1575 


9,,397,378 

24,965,500 

39,666,167 

20.482. 119 

5,374.253 

68,678,864 

101., 130,654 

1 !5,513,810 

132,879,444 

104,303,626 

63,463,776 

93,956,588 

103,471,098 

119,612,116 

105.053,443 

105,344,496 

37,289,762 

9,914,453 

», 841 ,675 




nan 




1877 









1*79 








1881 




1SS2 




1883 




1884 




1885 








1887 




1888 




Iftflfe 




1590 




1891 




1«92 




1893 ... 




1HB4 

1*95 


69.803,261 
42.805,223 


1896 

1897 


25.203.246 
18.052,466 


1898 . 





■ 17,248 


1899 


89,111,560 


1900 ... 


70,5°7,060 
77.: 

91,287.375 
54,29 




1901 

1002 






1903 






41., 770, 572 


1905 


'.323 
'6..IS86 


23,004.228 


1906 ... 




1907 ... 




1908 


59,656,362 









Note.- Nel < i "i ary receipts include receipts from customs. Interna] revenue, 
direct tnx. public binds, and "miscellaneous,' but do not include receipts from 
premiums, or treasury notes, or revenue? of Poet Offer Department. 
Net ordinary expenses include expenditures for War. Navy. Indians, pensions, 
payments for interest, and "miscellaneous," but do not Include premiums, 
principal or public debt, or erpendltures for postal service paid from revenues 
thereof. 



500 



STATISTICAL STATEMENTS. 



1 


i 


OltClOClflfflN 

<5 co t> i— co oo tn m 

oaooceooaooOcOco 




r" 


J 1 

li 

1 1 

1 1 
i i 


r 

i 

! 

! 

i 


i-t H H 
1 1 1 

1 1 1 

1 1 i 

i : i 
i i 

i j.i 

i i i 
i i i 



'.•-I ■■■■'. 
■~ - 
co CO 



•* ir o ;^ 00 c; 



oo oo co co oc Vj co cocccooaa 

HHr- IHHHHHHrip- IHH 



: i i 
i i i 
i i i 



i ; i 
i i i 

in 

Mill 

I ! < < : , 

NIMH 



Mil 

III! 

i : : i 

in 

I M I 

iiii 



I ! 



I I I I 



|in 



I I 



I I I 
I I i 



i i i i i 






lft^H00l£C»C^©3HScOi:~C^0<!-f<t^r-Cpt--i-HCOCOCOC0i 

5- ©3 o» oe co o cs q> e>5 1-- coiifs ir-* -^" -f o co *a ■* ©q cj co co co'co i> i 

!i CO ■* a S O rt X M K & !£ O X iC Ol * '.C C N N C. !" 
-t c3 SQ l>. i-< 00 0<l I> CO in CO l£5 »C © £^ I> CO H M H in H 



ieo«oca>©eo-#-<*-<* 



■>*l^t-^<Tt<kniOu-t-ClQint-HCT>t^©H00C0C<lCiH< 



g-g *«-5 -iH ' ' t« •• w •< W «f ••' erf ti •• eo e< oo «o ^' « ^" i-5 rn ci ei ei ©4 <n 



• "*c©ei8csiH-3io©j«oiAo>oo-*©io9eo 

t£1n.c<I-*h00©^Ji©i<C5 co vc S co cp c- ©3 



NtCMCOWOaOCTCNI 



2 HiaietMMMooHieNiiertKNNQ-tor.NHifQceowai^o 

ej • n a ^ w x m t- :o ri n C lo ci ^ a >* S h 5 o ft h a 3 * h k cc x c 

^ ^tnrt<in^CSH^u5©q^cO^COHa>^^cOTt<COOj»OCOH©COCO E-F- © 

5 H 00 60 C«j r-T-* ■* oTw W(flffiOOlOei5lOHN'<(l'*ie«itiH'*HOlO*0'* 

Q HHNNNNNKINNNHNNNiNMHt-INNNWNIN 



a^r^S©4i>t-r-<8!5*liH8BiS«t^i--iHco^-^' 



»©ieo(coxooCH 






ifflOOOHHiOiftiO')!'*'**'*' 



JO^COWWOiWUCSaO^HWC^HCffli^^WteO^OHH^eOHHr^© 
00©JQ0Bti^C7>t^'Sl^r-C^M^l0^*c6i-lC^CirMd^rHvCt^»^0il--©lO 

^ ^eoc©*eo©3i^^cSoo«coce^©4^cococoiotf}c<icocococoH&co-^© 

£l KJMH COM Q OOOHN HOoVtO '^COC^"-« , '<)i"hnVmN 85 ©3 irTlOO 

5 H2o-« | HSo5«Ha8o>«N»(N5ffiac:-'Noo6fcxci-o 

a WNNNifN$«WN!OtO»NHOnffil6NiOOO , jCffiNlftaO^O 
Q> iH iH i-H rH rH r-( tH i-l ©J l-H 






O 


coco 


* t- ■* * S5 m co 


iftlOM 


^«es, 


oo ©j co 35 


6 


oi~ 


© -# ©3 ->* H 


■# + 


?H 1 


CO 

to 


aoaaaMNHa 


332 


l-H -# 0C 


r-t lO 1ft CO -f ** ©J 


H CO CO O N CO r- 


1 
1 


m 




CO r-< 


0>©2lftH©3ceir>HCC©a 

rHO-*COC v 1lC©JOJ35Vf5 

N»0!oaa-*Hcoo 


■* ob e» *o r- o ©i 

*oiBhom« 

HCSt^COHH^ 


2 


c-. C5 j> ■* m co h 

tOOOt-MNMH 


O co 


BS 



" N-)i(NOONC3aiO'-KC5L^mK3N^NN'/)QHNONlffM')ilftMtfiO 

« ThffiaKS;-!!-(NXi--coi.'5MOM«o-+©S'io6aa)tptc«55(oaN(o5 

a (OWaftlOlMHIM CO' .'£-, MHONNNHHWMOwereN-fWN^HO 

,9 otCioaq"^^©^ \Q\&a>'£cSc£ oo*ow"o(Noo"NeqVM'd , orNCQO , 'o-* 

Q HNMNtit»a)3tBi'-«)fflaHinooHooo»ai-!HOwio-*to« 



S3 



iS3g8g35328&?33!g; 



;SS88SSe: 



^3 



o^^co©jHeoirtHocflooi>c©©H©q<»©ic©eo^HH^^ifr©qirt©q©© 

NaoOWHdSdOH^HHONCCHL'JX'MvoOHNONNiri^C'H'g 
^J OOMlOMCOMNNlflOOOSCIDNOHNiatOHOMaNrHlO^aHMMO 

*£ co h ©q <m -k irii> oh ©"oo ift oo co -f cvi a-i 10 r — f< co*© in co co co co eTco co O 
_5 e« oo co h •* 5s fc- S oo 55 h co co ©q >fl co co h K ©5 t> io oc 10 1^ co i~ ©i id 1^ 

^J HNOamOO')<'<)lNC100tlC<5«ONaa'.0aMHOHOl>NINWlCO 
2 •**** lO CO CO ©T ©t>lfi q"oTo 00 CO -tfco" CO POO «5 H NOI0H05 00N lft CO ©q 

Q efl^^»65©^4oeOH©q«eOiC)^cor^cococoo<ioo5HeO'T!HifiooOso<ieoco'»»< 

HHHHr- (rHHl-HHr-fHr-trHHrHH Hi— IHHHHMWIMN 



■U_'tci)ft «5OTiONftt^MN'*i)<CSNHVnHa(CCOtOl(»Ol5lNftMO 

(j^HHaNaMUlHNTllNHHTli^aO^.ttlNCNOOHCWWWlBH 

S^OMCftlOMHiaioOOo'^V^NNlflNW^OOHNNeeOOOHN 

w Ot-coifl^iftifliftio»iou3kaiow^«o^u^u5ioTf<ioiOkoiOiC'ifii'«i<kOio 



S^t50«0*N«lfiNlftllOOH«Wie(i5HlBH-*i*NHNffilM-*M< 
' M8SM©NONMtCOOO«h-t<6oOOOHIN<CLrM-haCOMOH«( 



*■+" 0> H CO O H , 
ITi-WOtOl 

a o 00 o 10 -m i 



ItOHHMfioaOMOaN-. 

I 0-1 IC C-1 00 (» CI 10 1 CO © cc x -t Ol — 

K»0*ft95B-*0<01Cf-iac01C!OH 



-+r-o^oi>cciM] 



Q'*i.joaat;OooNot»*aH05ir'.TOCocift«oaLcii-ocoM^o 

HHC<lH©^©3cOCOCOCOTf(^M>^Jo^CSICO->^-*COCO-*-*-*KO-^lOCCr-lft 



1 : 1 
I 



I ! 



1:11:11:1 



I i I I 
I 



I I I 



1 1 1 1 1 1 1 : 1 

I 1 1 : 1 : : : i 
1:1111::: 
11111::. 1 : 
:i 11 11 i! : 

II 11 M : 11 



mm: 

Mill 

I I I I I 

I I I I t 

I I I I I 

I I I I I 

mm: 
mm: 



Ml 

I ' M 

II I 

MM 
Ml 

MM 

1 I * 
>t-22 



00 CO CC CO CO CO ! 



1 00 00 go 00 * 55 a a a aadtaAdoooooobS 
'o/5cocococococococooooooooooo©©©©©©©©2 



STATISTICAL STATEMENTS. 



la** 



i i i i I 



mum 

i i i i i I 
i i i 



I 



r*mni 



n i n i ^ n n ~, 1 



I I ! I I 



s^.sssstfiasaaussassss&ass-'SE^aaaa i 



*3 



ij&»gg3!2ae8398*ai!Sl!«55i8ai3ii 



p 



i-l r4 « r-l (N r-1 N M r-t *j r4 rH* rH rH 1-1 <* H W M «J ©1 «4 M «' J #4 



aiiaiBlll9lll8KSaSBe9S38839SSSi 

8rfBWW8ES2^SSSa8S88§g8838i = §8 



I 






i M9Si9epiSiSaiSS99liHaftS^eS331S 

1 93i'3S'a 3S13fH19SSSM^V38 Ufti 

I » * a » g sja aVg* a'rffl a" asf « a as" a « atf a * g g sf| 









. 23a838S93§B3IS3SaS63gBBaBBBaR58 

| S53lW8sa2£^ 

1 * zteaa a a §s a s a as a a $£$ sf aa" w; sf d a s£tfa* 



|-a$i!aa£58artsaafliaamqa»i9^a»aaa^9aa»t 

Blariaaa'g-arfaddaaaarfdaddjl^siaasaa 



.. aS£83«333BS3a3B9iB32aBB888B!l38 






SSKKa?iS83^ff8i3l:RffslsgtaKBa^Rail«&iS 



5tl 



. 1*833383! 

a asssr 



mmsm 



FT 



MM 
Mil 

I I I I III 
III Ml I 

ill ! I i : 

M m : i m : m i 



i i : 



I 1 



Hill! 



mini 



STATISTICAL STATEMENTS. 



Government finance, per capita. 



Yw. 



Population 
June 1. 



3S:--i 


39,555,000 


40,596,000 


1878 


41,677,000 


1874 


42,796,000 


1878 


43,951,000 


1878 


45,137,000 


1877 


46,353,000 
47,598,000 


1878 


1879 


48,866,000 


1880. _. 


50.155,783 


1881 


51*310,000 


1882 


52,495,000 


1888 


53,693.000 


1884 


54,911,000 
56,148,000 


1885 


1888 


57,404,000 


1887 


58,680,000 


1888 


59,974,000 


1889 


61,289,000 
62,622,250 


1890 


1891 


68,844,000 


1892 


65,086,000 
66,319,000 


1893 


1894 


67,632,000 


1895 


68,934,000 


1898 


70,251,000 


1897 


71,592,000 


1898 


72,947,000 


1899 


74,318,000 


1900. 


76,303,387 


1901 


77,647,000 


1902 


. 79,003,000 


1908 


80,372,000 


1904 


81,752,000 


1905 


83,143,000 


1908 


84,216,433 


1907 


85,817,239 



Government finance, per capita. 



Amou't 


Money 


Debt 


Year ending June 30. 


of 




« 




Dis- 


money 
in the 
United 
States 
July l. 


in cir- 
cula- 
tion 

July 1. 


cash in 
Treas- 
ury, 
July 1. 


Inter- 
est on 
public 

debt. 


Fet 
reve- 
nue. 


Net ex- 
penses. 


burse- 
ments 
for 

pen- 
sions. 


Dolls. 


Dolls. 


Dolls. 


Dolls. 


Dolls. 


Dolls. 


Dolls. 


18.75 


18.10 


56.81 


2.83 


9.69 


7.39 


0.84 


18,79 


18.19 


52.96 


2.56 


9.22 


6.84 


.74 


18.58 


18.04 


50.52 


2.35 


8.01 


6.97 


.70 


18.83 


18.13 


49.17 


2.31 


7.13 


7.07 


.71 


18.16 


17.16 


47.53 


2.20 


6.55 


6.25 


.68 


17.52 


16.12 


45.66 


2.11 


6.52 


5.87 


.63 


16.46 


15.58 


43.56 


2.01 


6.07 


5.21 


.62 


16.59 


15.32 


41.01 


1.99 


5.42 


4.98 


.56 


21.15 


16.75 


40.85 


1.71 


5.60 


5.46 


.69 


23.64 


19.41 


3fi.27 


l . 59 


6.65 


5.34 


1.14 


26.30 


21.71 


35.46 


1.46 


7.00 


5.08 


.98 


26.85 


22.37 


31.91 


1.09 


7.68 


4.91 


1.03 


27.42 


22.91 


28.66 


.96 


7.41 


4.94 


1.13 


27.08 


22.65 


26.20 


.87 


6.36 


4.44 


1.04 


27.38 


23.02 


24.50 


.84 


5.76 


4.63 


1.17 


27.20 


21.82 


22.34 


.79 


5.86 


4.22 


1.13 


27.84 


22.45 


20.03 


.71 


6.33 


4.56 


1.27 


28.20 


22.83 


17.72 


.65 


6.32 


. 4.46 


1.33 


27.06 


22.52 


15.92 


.53 


6.31 


4.88 


1.45 


26.91 


22.82 


14.22 


.47 


6.43 


4.88 


1.71 


26.28 


23.42 


13.34 


.37 


8.14 


5.72 


1.95 


26.92 


24.56 


12.93 


.35 


5.44 


5.29 


2.07 


26.21 


24.03 


12.04 


.35 


5.81 


5.77 


2.40 


26.69 


24.52 


13.30 


.38 


4.40 


5.43 


2.0) 


26.39 


23.20 


13.08 


.42 


4.54 


5.16 


2.05 


25.62 


21.41 


13.60 


.49 


4.65 


5.01 


1.98 


26.62 


22.81 


13.78 


.48 


4.85 


5.10 


1.97 


28.43 


25.15 


14.08 


.47 


5.55 


6.07 


2.02 


29.47 


25.58 


15.55 


.54 


6.93 


8.14 


1.88 


30.66 


26.94 


14.52 


.44 


7.43 


6.39 


1.85 


31.98 


27.98 


13.45 


.38 


7.56 


6.56 


1.79 


32.45 


28.43 


12.27 


.35 


7.11 


5.96 


1.75 


33.40 


29.42 


11.51. 


.32 


6.93 


6.26 


1.72 


34.29 


30.77 


11.83 


.30 


6.60 


7.11 


1.74 


34.68 


31.08 


11.91 


.29 


6.54 


6.81 


1.72 


36.45 


32.32 


11.45 


.28 


7.02 


6.72 


1.67 


36.30 


32.22 


10.22 


.25 


7.70 


6.78 


1.62 



Reciprocity must l>e treated as tlie handmaiden of pro- 
tection. Our first duty is to see that the protection granted 
by the tariff in every ease where it is needed is maintained. 
and. that reciprocity he sought for so far as it can safely he 
done without injury to our home industries. — President 
Roosevelt's Annual Message,. Fifty-seventh Congress, first 
session. 

While Mr. Bryan has been most emphatic and eloquent 
in his description and denunciation of trusts and abuses of 
corporate organisation and wealth, his suggested remedies 
for their prompt suppression have been very vague. nnSess 
indeed his proposal that the Government buy or condemn 
all interstate rail-ways -with their immense mileage and 
maintain and operate them is to be regarded as an im- 
mediate, ready, practical, and feasible remedy. — Hon. Wm. 
H. Taft, at Greensboro, Narth Carolina. 

Think of it, men of Rochester; you producers and manu- 
facturers and merchants and traders and bankers and trans- 
porters, think of it! The market of our own country, the 
home market, in -which you can transport your goods from 
the door of the factory to the door of the consumer, without 
breaking bulk a single time, is equal to the entire inter- 
national commerce of the world. — O. P. Austin, at Rochester. 



But n*» one can read the report of the commission on 
the history of the union of the Southern Pacific and Union 
Pacific systems -with the Illinois Central system without 
trembling at the enormous power that one man, by the un- 
controlled use of the stock and bond issuing power of 
interstate railways under state charters, had acquired in 
respect to a vital part of the country's business and with- 
out looking for some means of remedying such a dangerous 
tendency -which, if not stopped, will lead to the absorption 
of all the railroads of the country into one hand. — Hon. 
Wm. H. Taft, at Columbus, Ohio. 



STATISTICAL STATEMENTS. 



503 






8Sflgg£l8^S§853SgS8S^feS8 



^COCSKMCSIiHMrHr-lr-l 






o Si 

I 3 



°3& 
« a> a> 

p. fl) H 






woi-o ei eo < 
w eo el ci n c? ] §j I-h 1h 2! S i 



: J w — m ■ 






;888j 



i- o o o < 



:§8388! 

> o ci o O o ; 



Ifilil 



Q h ■* o co n r, - 1 -* / y - « n u- A, 



. _ _ -, - 



!33S$9SeSSSSfe38Sg3{§8S8g2?22:£fcg.gS8; 






-f O © CO SO 
-<l<MtOON10MHHOClN 

to o» cs in eo oo in cm* in co'tn ©" 

CHHN.WCQN00NONO 
0!aM(010-*50(NHOOi» 



•o 55 53 

C1H ' 



= ~£ 



» : 



KSSSSSiHii 



INNHHHHi 






SSSglsSi3§iiiSsiSi88aSiig§sSsI*y 



■-4 o •* to cj c5 oo oC to 

NIOlN^OOOOOM 



» M OS i 

■HrtHi 



1 5? •* o ■ 



eOO><OO>"9<0di-ieoi 

co in i-i oo'ci'cfoi'co rH 

iK-^ajOOOiOOcN^CQi 
NWCO^-WrHlSjiSl 



INNNNOOQONOOOi 



-o* — C) X « 



h 

aSt 

Is 



»(N3*io^ininu^co9«rHoo'n eor>ofto<M ©*<o -« incioo'ci'Hi -T .-T © ©" — T co" m' — /©" 
*bNMMiM >* -*oeo HinSoowoHOiiiSNHaoioinoiSMO^S 
3!SS3S!5 ; 2^3 OC 2 00 3; ' :0 ir> *' s ~ ci a> ci m oo in cm ©*o r~ <o"h on oocj -*" V r-Tr-"© 

M »f tN NNVwVNHHHHHHVHHHHHHHHHHHNINNN«NC-l"(NfJ' 






■3 tn 



a00(NN-«lCiSOHHH00N*l«ONH M 00 '♦ONCIOi-O^O S X'" 
OMoe^ri5N-)<HOrl«oi-i'ogHd : 5"in3oi^iic-ONi(ir-^*i>Si» 

©iSHMN000000N»5HMNMN00So!B<000MH«ft01OC0NfJl-a)OXC:- 

Howmieujow cToo x> ^"coa e» e» j-T us co © cgo'xd'-ioi ci -r"«q*«o"cp »'o'-- »c 



oaH^«ina-i , coce-*'?5&-*HO ; tcoNM5Nioxaio::::c/. © - 
co'co'in cm op mi inn co o i-i » o m> m ©".-Tin -*" in -r r-irn -.2 ;c 



d3§ 

a> o 3 

Qg,fl 



NMHHHHi 



03-3 
SO 

□ s 



Sao 



o 4> 



NOOftMlNOOHlflOOllNM'OCBlfl^Mvrrt-iiflNiniftOJNOWlOmL- 



ioo«05-.:iMn«-»-ONNi 

ON'JOHHOSOOM-l<ClOlOt-?lMiOOO(CBOHrtrt< 



33< 



in co • 






r- t— m m "f -«»i • 



CO CO CM CM CM CM I 



3SgS§g88gg8?§g!?8g388S*3*3£.-?2$as 



o m co io 

co m i- co : 



rH r-J OJ OJ C* PJ «0 <3J CM © ■* I 

t~ r~ t» I-- r - 



I l : 



: i : 



:^5 



! I t 
: i i 

I I ! 
! ! I 

i i : 
i : : 



: i 



i : 



I \\ I 



! ! ! 



ill! 



: i : 
i i : 
! : ! 



! I 



! ! 

: : I 

: : l 

: : 



! ! 



S x Bq ' 



i : 






I : i 

; ! : 

: ! : : 






i : i ! 
I 



m 



504 



STATISTICAL STATEMENTS. 



Number and mileage of railroads placed under receiverships and 
sold under foreclosure during the calendar years J.S76' to 1007. 

[From the Railway Age, Chicago.] 



Calendar 
year. 



1876. ._ 
1877— 
1878... 

1879 

1880 

1881— 

1882 

1883 

1884... 

1885 

1886 

1887 

1888 

1889 

1890 

1891 

1892 

1893 

1894 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902. ._ 
1903... 

1904 

1905 

1906 

1907— 



Total 



P.aced under receivership. 



Number 
of roads. 



Miles. 



22 

22 | 

26 ] 

26 I 

36 

74 

38 

31 

34 

18 

18 

10 

16 

4 

5 

9 

8 
10 

6 

7 



6,662 

3,637 

2,320 

1,102 

885 

110 

912 

1,990 

11,038 

8,386 

1,799 

1,046 

3,270 

3,803 

2,963 

2,159 

10,508 

29,340 

7,025 

4,089 

5,441 

1,537 

2,069 

1,019 

1,165 

73 

278 

229 

744 

3,593 

204 

317 



119,713 



Stocks and 
bonds. 



$467 

220 

92 

39 

140 



108 

714 

385 

70 

90 

186 

99 

105 

84 

357 

1,781 

395 

369 

275 

92 

138 

52 

78 

1 

5 

18 
36 
176 
55 
13 



,000,000 
,294,000 
,385,000 
,367,000 
,235,000 
,712,000 
,074,000 
,470,000 
,755,000 
,460,000 
,346,000 
,318,000 
,814,000 
,664,000 
,007,000 
,479,000 
,692.000 
,046,000 
,791,000 
,075,000 
,597,000 
,909,000 
,701,000 
,285,000 
,234,000 
,627,000 
,835,000 
,823,000 
,069,000 
,321,000 
,042,000 
,585,000 



$6, 



,072,000 



Sold under foreclosure. 



Number 
of roads. 



Miles. 



931 



3,810 

3,875 

3,906 

4,90) 

3,775 

2,617 

867 

1,351 

710 

3,156 

7,687 

5,478 

1,596 

2,930 

3,825 

3,223 

1,922 

1,613 

5,643 

12,831 

13,730 

6,675 

6,054 

4,291 

3,477 

1,139 

693 

555 

524 

679 



113,953 



Stocks and 
bonds. 



$217,8:8 

198,9^ 

311,631 

243,28b 

263,882 

137,923 

65,423 

47,100 

23,50! 

278,3)1 

374,109 

328,181 

64,555 

137,815 

182,495 

169,089 

95,898 

79,924 

318,999 

761,791 

.,150,377 

517,680 

252,010 

267,534 

190,374 

85,808 

39,788 

15,885 

28,266 

20,307 

10,400 

13,777 



ooo 
,o,0 
,000 
,0(XJ 
,009 
,090 
,0W 
,009 
,900 
,090 
,000 
,000 
,000 
,000 
,090 
,000 
,000 
,000 
,000 
,000 
,000 
,009 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 
,000 



$6,893,922,000 



The job hunts the man, not the man the job. When that 
condition exists labor is always better rewarded. — President 
McKinley. 

England learns from experience — Democracy does not. 
—Hon. Charles Dick, in Congress, Jan. 5, 10O4. 

What has been done for the tin-plate manufacturers in 
the United States can be done for American shipbuilders and 
American shipowners. — Hon. Wm. S. Greene, in Congress, 
April 28, 1904. 

Mr. Bryan asks me what I would do with the trusts. I 
answer that I "would restrain unlawful trusts with all the 
efficiency of injunctive process and would punish with all 
the severity of criminal prosecution every attempt on the 
part of aggregated capital through the illegal means I have 
described to suppress competition. — Hon. Wm. H. Taft, at 
Columbus, Ohio. 

Not only is our home market equal to the international 
commerce of the entire world, but it is growing- far more 
rapidly than international commece. The Internal com- 
merce of the United States has grown from 7 billions in 
1870 to 28 billions in 190S, while the international com- 
merce has grown from 11 billions in 1870 to 28 billions in 
1908; in other vrords, while the international commerce of 
the world is now two and one-half times as great as in 
1870, the internal commerce of the United States is now 
four times as great as in that year and equals the entire 
commerce between all nations. — O. P. Austin, Chief of Bu- 
reau of Statistics. 

What has been the result to the United States of this 
so-called colonial policy? Well, it has added to her trade 
something over one hundred millions of dollars. I do not 
think that is important except as a beginning. If the gov- 
ernment continues its friendly policy toward Porto Rico 
and the Philippines and opens her markets as well to the 
Philippines as to Porto Rico, this trade will treble and 
quadruple in a inarvelously short time, so that merely from 
the standpoint of material progress, the mutual benefits for 
the people we are helping and ourselves -will be no mean 
justification for the policy.— Hon. Wm. H. Taft, at Cleveland, 
Ohio. 



STATISTICAL STATEMENTS. 



105 



-8 3P 



1 2 H 



'Onu'-t:-', 



U~ t* St I 

I" ° I 

« a - © 

sf!a 






ffi-»*0 3X'-30o-/,- •: - M A floe 

M<si 94 91 IN S4 CN C4 CN CM 04 — ' — " — " — ^fo* ?l" ci" - ' 

— SO w irt ■->"-/; /. fljoStlMSH 



■o -c co -o O I 



-.; - CO co co » r» r~ ( 



38|S3eS8&88388588SSSISSIS{!lSSl: 

Q 






i 33 



™io3oiftt-.>oocco"r--«i-ioSKS8s88S88 

g to co — ' so « >* >o -* us -*' — 22 e* ej M — ■— " ca » © ^Moe 



■-5*2, 



jd^- I 



3»SSa»ee^ioS8.$e88t38886SS8;894f 

g-noiOis-i'MrHaoaoooaooo i - toV n t' »' ui ui u> to >«' » «' 
0^ 



M^dlCW^KMO-a- x — — re — — . - — / i — ■ 
<-« -« o O C4 O 00 1-4 CO 0Q 35 '•* t- h- 00 CO o» I — - o — o o CO I 



■* yz -f -t in ' 






SC 



a 



*r 7, s> y 3 - 
< u a. 



IB 



N!MNlNN!NMINMj)N(NDINNr-MNMINNNNN 



^KriPHMMoocKoasirx-ifOiafCrti 

o m r o n M -"" >. ~i f : " • « ? i- - i 

jiiQ»-»paeio«(Nsin /. — .-. ; - -m 5*. <o so • 

SO EN i - /' i- r 

— / i - — n (S 3 i» 3 i 



i-i -s n cm 
- o vi - 

CO I- CO 

DOi — • if ~» » OS i — i so 

CO '^ Ol X M ITOWHtiSS 



- >m rj - - o o is t> ~ r. i- - - i — © w> to - iftifl 

MK-frtiSLlUiiSClO >o 5 i» I* i- \2 ■■£ - -c i- t- x> 






l -* Irt CO — O CO CO ' 
IIP JiTlOMCMH^ 



s^sssss; 



lO-usH 

i O r^ — r^ 



-TMOOOCOr-iio-*-*'aD-"<pCOT'l-*'r^- - "— ~ r - -- — i -» 

_■ 3 Jn — m c~ to JB Sj td >' 

-r CO CM I— SO — r- -M -M 3) "M l~ O U — C* / i 5* 91 - M — 

" i-"i~ — ' i.- -T so c > uf! '4 "- 1 — "~ _ x >~ r - ■ ■ - — 
>-//■-/ O-qI* 3:iifi 

^* — " — ' . ~ i -f ic ir: in «ft >n >n >o i- i - 



05 1^ © CO 

$32 3 






CM* oi »i csi M iH — ' i-i pH i-J fl i-J ri r* ri iMMMCOnnit) 



oj ^ 



-/• - co ~ » 

^ '" O '.; «f '/ ~ " >" 2 S ^ H V "- 'j 7 



- u 

oca 

J 3 


/- : 






: : 












306 



STATISTICAL STATEMENTS. 



a 
P 



O 



rt €* 

a Sis 



B 



j yo 

4J tH 



13 I >» 



OD 

•a i 

rt, M 



o eo «5 »§ -*i ^( eo m o co i"y-i <x> o i: — x ra © in ( 
^ • ift © •* ** n © t~ ©t~ in © © o © © co © <n i 

W> jj cTj>T(M*'c3 «5* lO i-H IOONO <m" 00*00 Ift 1^0 10 ! 

^,3- » , . . NM1--0 " 1 I- in © i-H © CO 00 IQ i-H I 

<S,2" * * "* CMl--mCO"'J<T-ICOl000CD-HNCOCM'*©CM»« I 

'S. - locomowiovcoi^ooiNffiH'mw nhoj" i 

S&SS*!SSaSl888SSSSg5teS ! 

H H H rl H ri rt I 
I 

I 

I 

___________________ — _ ^_____^_ L 

•OO^Cl(ffi-*l£)l>NOOMH«)C50NlS'<JC^05COM6*3 I 

^ o co cs n odh o"ia m" o w o"'* p co o x n oTib (OM d'H I 

-h O H Ifl N H t» (O © CR M H CO CO N ■* & « © H (ON CO H •* I 
O © rH -J tH eM©"© OOoTi-H © -fi © t-TcOOO -H©" 00 CO <M*© "* Ift I 

QiOcopraMin<Di2NNco(8incoirtttoovnocoNNinH i 

S 



;©"S?3 



(NOHNlfli 



;©«$5£©-So853 



assj5feS8?§3aaassasassfcsa8a8|s 



8Sc1S5SSgfete«8f2SSSg8gSS§{SSSS 

• ©CMN©CMCOC<lNiH<MNM©inoOC»©©irei-IC»COCO-*CN 

•JfCIHCOuON'TlCONOOO-tNeOOHMCOffiHSiOC!'* 

in 



C3© 

a-**: 

O po to in ■«*( CO CO 
Ci F- 00 N. lA J>- © 



ooHgONSiftioo n- © r- ca cm i 
© co © © ■** eo © inN-^cor-ioortN.' 
mcoc5incooo©©i-H<NeoininNN< 



INNNNNNNi 



c»i^©©cocoK.oocoin§©^©o6c»pinS©S^Hpi,-^cl 
cocooco©©-*©coc»cNic<i^i-iior-iF.eooo©eo©F- Nth 



5«00©NeONCOCOCM 

»j -h© i n <>3-^(Ncor-. 

C3©C<1COCOOOCM1>00 



coj>m>p©-*aocNcot^©©c<ioo-i!oofti 

©Mllfti-li-<t>00Or--©r-l©-*CMN©3S 



> CO CO M< "* ( 



Q CM CN CM CM CM CO 00 c 






iSMNObw^WNHNSOMMKHMN^OiNCoS 

icoooN-inN©MNco©©CMNco©obMcNctoN©T-icoi> 

"owNfficioffl T-Tt-T ©*© ynoo«>rH-#»»i©icr 
0OrHeorwcM©NCMCMcpM</5N©coi---irt«*© 
©co©c»i>oo©Neo©eM<b-TficocoeNMHi-Ho5 



I lo © © © in to 

' co ©in -* co co* co cm 



-ncococo<M-*int^cocot>iowsr^t-c<)©©-*T(ieoo» 

00COCM©©in0O©i— ICMM<©i-<©C»CDCp-*"<*©tQ© 

ococoTt(coMCocqeoeo95'*inioioini5i6iCiO!oilB 



:£$339*;;s33$£sa8£ft 



g Ob CO © 

5MCO-t 



OO-^NCO 
O co co" 00 CO 



r-!r-icoco©eo-*©eNj©io©eo©eocoeoijfti-t'* , ^«j 

©OOCO©COg0050005©M©t^-COin5!F~**IOO»r-(5{ 
CO © iH CO b- 00 l-l CON C)COTff00HHa«NNC5O»ffl 

ir>eo ■* n inco m< -k © n- nTn-'n in ©"cn ih o co oo oo ■*" 

oocDO-ticoGOOoeoi-HoocoeOccinN-inin. i-h r-< cm <b 55 



-*00C<I©O©O©O< 
, l> O0 CM © © m rH CM eo i 

lN00N-C0r-!©rH:-HCO' 



>©©©0©©©©©0©Q©( 

IOOOOOH'*NOOOCO-iJ"*COHl 



PcqOinOOTOMOClNHCJCOICiNOOCOHOHNCCP'HCO 

5 m •* io n a m h c! e_i co 3 o o co (D -s i- — h i^ ■* m in to co © 

3-^CO-fiCOQHCOiniOOIOClCOCOCOO^HOinHHHClOlS 



O N t- Ml 



lcoomomininONNNcoi 

•--c5cJHCCCOC0HM<-ti*n<( 

Nt--*t~©«5io«5i>oooocjo©< 



:r?§8S88SS8SfeS: 

eoooooooooocoo' 



S©00( 
© Ml ( 



i— I 00 00 ,-( in CO CM -H CO CI CM -i< -H (M N- 00 CO F» M I C I I 

© -ti in in m -n cm ~h r/)-»cocoina-iiHO»)iONin 

H^lOCSHHCDOOOCOOClN in©C0C0CO©C0t~' 



m co co co co < 



• OOOHClTlltONOipHCOitinN 
'ONNNNNNNMiOOOOOCOCO 



I 
I I I 



i : i 
I i I 



I I ! I II I I I I 



I I I 



I I I I 
I I I I 
I I 1 1 

I I I I 

I I I I 



I ! 



TT 
I I I 
I I I 



I I I I I I 



oooinoinoHcico-nooi^cooOH 

incOI-NOOCOOOftC: © © © © © © © © ' 
00 00 CO 00 00 '/> c Ji 00 V 00 ) /. oo o oo 00 © © ' 



a 9 8 



I 

% 1 



03 



! * 1 
s 5 * 

•S 8 1 



1 s i 

F i « 

S °fl a 



S B 



III 

si 



8£8 
•Is 5 * 

aa <h 






•Sg 






a 6 

*3 S 



s& 



! O » 






J2 S w ft — 143 



2^ « 



V ft 



rt co rt a"rt « 
§1 V,B Sa 

s| s§ sa 

^S^ft-« 

r5 £ ^ 

SZi J2i no 
5 S <] 



STATISTICAL STATEMENT*. 



o o 4 

a) '£ .c3 . 

ffg.a 



8S 1 -l- 






© r-J.OO «o -M — 50 x — I 









8 III 



§ 3 2 « 2 » £ ^ ^ 2° o g 3 2 P 2 2? 3? 
ao a cs r~- si ■* ci to -o i'- => S <3 H-i»Kx 



lpssS?S%;gS8tl§I8i 



ei "" -■ /3 -o v-j <o — -c. i 
Cc."o 



3 






II 



2 '"■ ■.- r-i eg oo as "?©"oo «?©' no omm« m —"—"_", „* .-' —"—",-r 

■•roHOQ^iMOHicea-ro-ri'-NMtrjuiSioijo 

iss&Wsssissi iiii 



: 3§g§gS3«**§3s§3»§ 

ana 



'2 0»lp-«NOOINOtClTOaM. 
CHrOlfiflHHQOft&Wa---- 

jinooooioncT-JoeiM-OHi 






S3 



- 



S-8£¥A 



T 

r49222 c 2 r - < i2sJ'*'S ,35 «o= ( iftcr, oo S S ■? c-5 c-i £ I 

• « .°. . .°.t' fl .™ 00 .'*." c .° N -?wrf«Hci5iHo ! 
S rt -^ o -^ oo o 15 cv cm-~ ci c: S x o irio co V5 S r - ic » I 

1" C ^T N •* n — r-MCO r- < C-Tcf -trwl 1 I 

Wo H «*JO «s to^wfc*. b e«c N ? 8 

J?; eg i-i ©a w co" "*.«* -**■>* «Oke i« wVT.rJ'oc e;"©~rH J 1 
•^ ~ i_ 

S OO C! O! tO 5 If - ■? 'C O ■*" H C« CSM C-" I-"h" M I 

•Jf <M to :? r - M - :0 co i~ <3 -- -M O - Si-MSftb Ol « 

a | ! 

£.03 I C-5 ~5 -1 - (M l-> - - 3 K ;- S .-? >> S S V~ IC S 

5« llOTOCLIOOt-IMHOnCXOaiSufMNO j 

"c "v „ 1 050 o» rjTed 01 30'xoc t£'f&*>9>t'\Q&1Q 1 

WO 1 £"* "*»°» COM 5s* r-«c4 ^«6<55bj nS-* 

1 '+»£,$ I i-h co -><ioio to'ot^ftOaoo.-iMco -*u5 0(«* 1 

_5 j L 

. -* © SO — I>3 10 CO (^ O OS t-- OS -*• JM M 

,_ in 1^ — tc y, c 

5 S3 JO 50 30 U-5 • ; ] — 50 

fines* " ■ ~ i - 50 

m s> :■: 

H N N M f - ID -O l~ i -" J- 00" 0B 



p 

si 

ft" 

'I 
I- 

*5 



55 




SOS 



ST A T I STIC A L ST A TEMENTS. 



ECCC1CI«»I- 



MXirMOJlCCN - rH O O rH <N 



—> O Ol CO CO cs c- 00 CO e> 
" rH (M N (M (M 9J IMCOM 



05 Iff 'X fi * w O M H 



o a 
- i ~ co 01 O o-i ir> < 



COi 



05 00 6b CO irj (M O I 



© » «■ 

[5§8 

■* ® w i~ oo o © co ■+ -* co* as" CO 



$8gfS£83g8Sgj8&i: 

!NNHt^HlCN«)OlOClOCOH 



— t< CO OJ — NIM » Q H 
COO — lftOUOCOCQO' 
ftNIMMMNOMHl 



0©?3cc^fb^o^ino^>A^Mio^ScoK™&og5©cc 

£^ io co to © oooiNNHH® -* co ©,*"■ *~L^ oo_ oo^«5 •<»• &> Jo r- 

r-T s>" eo" ■* oT oo" oT r-T c» «* ao os* t-T eo* co ** *~* co" co* <N* in ift 

HHHHMrtHNNSJ 



,*3c»©i^coc§o5iNtti>coco©cococo£orH^isgocN 

! CO 2*52 QW © S? ffl »fl ■* Cj © 0~0*l£*-H' £5 -? I- 00 r-l ©*C0 



i ! ! !S?o1feSic?^g8S288*?§g 

I I N HP-* !< N * © S 6 « 5 6 00 O » 

I I tO «5 CO CO~rH »"•> ffi® -* *-> © © 2;' © CO 

I I INHOwaJlNNMO^tHSS^N 

I I I i w HHoJrtioNaao&woenw 



e-9 



o . 

05 G 



iiiiiiiiiiiiiigsiisiif 

■'ll'Ss'liSiilliililiSi 



rH i-H to IC 



4-*&*ini»«HrtrtHrHrtHHrtrH^ 



so im co o ca 1 



f-^r-oOrHeccoiftSooocoTfu 



mm 



K^toco«^.>£©c3co 

COc6lS-t~tf$r~O0rHO0'"*« 



00 co con t^ g 

CO ** CO C5 rH O 



* --S 



>£«-»<*«><»333Sg3£g?£g~-; 









<o 5. a 



CD 



03^3 3 fcfl 

2 «s 2 fl 

I a si 



:i2§§: 



'NONC9-*'+HlC5Hlff«)<U5lO(NMCOO 

i^cocpf^<>3cof-^rH^^iocor--»r5eoo»n^;2"5S 
!©c$R*£S»$r-i^i^*o©©cokS — ootVioooS 

r SSSi?aai888»*fS5SS!8SfeSg| 



C0^^i^C»Cp0DO5rHt^t^C<!i-HO5COOllOir'rH^-i0<l 



IO &-> ( 



^ico^^c^g|gfeS^§2c5SfeS^§^ScS^SS 

§ «J^T* w eg gjg w rf j-T g {5 Q JJ g $j" «f Jg fc g&&3f 



OH'JUOMNPaSOtlHNBJlftHHNNNfO^OO'tS 



Sa8S6SS8iSlSii8s§S888i9S 

i8WiSSWS8WS8S-Sil5S§«fS3 
|«saag§^8 ****8ff"2|g M g®«§ffig| 



'^CNO>t^COC5t-lOC-lrHriiI'>1rH"rt<rH(NlrH( 

lOONtOiniNHlQHOOOOCOIMfflHN! 



19! 



^HMOOHHfl-iOt^(-!OOi®aNlOnOHH-«gNNC 
S m K H OS O N CO N H N « W - ir N CD t P © 35 » O 00 J] « 
SNOrl00MN!dH95S.lO0!!0HMIO«O © -f f-_H(SO t 

2 rH 1^ co 00" i-T coo *f go oj ooV(oa'»<fiMMooa'*N< 

fir*^ w ^.SS£:22rSg*2rSr5SrSgfeSlc?^i^^! 




STATISTICAL STATEMENTS. 






ill 



a: cp — 

e--jifi 



wis 

s~a 

oS«P 

a. © 



II 

3 



2 5? 
©62 

3g = 



I £ 



J-l 



i ait* *» o*«Tt^ «*• ir> — »T— i-< w 



I I 



lISISSilHIS^IiRIF 

iftSS8iS88S8HSs 



I eg pa -< oVm r" "* 

I f r- OS X *-. 30 c<5 31 



r. ►- i!* m •£ — M c> — © W '-. ro 



s*r: 



j§5$|8988«S88« 

i § % 4 i i i i i s s = i i i « s g § 

! z ' — 3 J3 2 J2 3J ^2 Jj wVjbTis £ ? ^X- ,n " 



! 22 r* iC £ '~ ^ ST 2> * — © <3 5 fi <? -' ^ i- -j£ u- 
! ~X. 5 53 "" S5 cfyftTn \g x m fr 9* «'t» to -*Q i-"o" 

i^aa^8S3!5S^I»8sBJ:is58« 
! S fc* 3 8 8*8*5 8*S* 3*a*X 5*S*S P 8 = ?*3* 



- H H H W »l *l 



iflfflflfflslISplF 

§ SSSS f MH" 12 HI IS H 

§isilieiSili538iSiig 



hftSS 






t 2 2 2 £2 N '.C 5 m l~ -r " ro -s r; ur .£ — <j> «• : -. i: ->'< 4 

&88j.lMllilS8£Sf9lS86sSI8I 
•t 38 $ 3°£&gtf fssgf £8*8fi"*3fe"3*3 

■*oO i- i- ^ co •+ at s^o ^ S » ;» ~ « 1^ to iK 3 »-« <i •>' «5 

Si 88*3*8*3 8*3 S $9 8*8Sl 8*58*8 8 E 55S 5 S 

TliiiMsfsisssipiaiiF 

— ® « ^ ^ i£ r^ » i« x ^ c^* £*•* ~? CO *«-••©:-- r*'" co'r-T 

2?l3SP:88i55*Sal3 52 88Sj5iS55Sf5?! 






•2 P. £ 



: 51Sj.a8isJ.ISSBfggiBigI?SH 

to co 05 — ' -j "T "* *" * * [2 •" ■* M ' J2 2* '~° '■* ** * *£3 *" w *** 





<o ir. en o » :c aC o jo ^ — 5£ -* c-J m r- ^ » & o c-. i^ >N ?T <5 


— a) 


2q - o'rot-Tji} o r 3 «5*2 t© to »■*< -r • m -tjir t~ o « f~ o 
!3HM~'Matl^(»tNlfJ3-r3i'*B«5H'MH,';c.|u:KON 






iSISlSfllllSSEliHSIIIISIB 




r-c rn ^T^h q| 04 ?(iM*e<?) IH.JH iHlJ^H M«C NCO 04 WOT * V 





s ^ ^ a • 



IS 



^j % 8pjj.8§l^iSii 

s * « n r. ^ o i* i^ tj fc * N - a : »~ a rl 3: >■* -b C 



8.3888. 



h-imm«:i»1«NNM' 






irf o^ s* 35 ■* o o •* ■* * <B •* 9» ot i^w x 56 r-. « o a o 

M — si ■/; o o — i - •>! to co cc r- o c-s >r -* o 7j - 

SS§83l858S888c5s3ilS3Ss 



*nT» MTocfiff Cs'o» «-* jfl ^ 3 < 



« ;i n J 5 



S3 

2. 

Si 



.qiPllli^^Ss^'i" 

O'Mr40ICDteiC'*e9X9M3l <-' i :'Ji-- 









© a 



75- ii 

as? 

5 



o ! 

e- : 

7 
• r- 



««M* 



Minimi 

r i !g £ >: zi t r ^ :c - - g j r J S j 

8S*iS*S*8*5S 

- 



-.nKlTi.-l- /. -r. '* ►- • r - « -. r- ~ 3> £■ 






miiiiiiiiiiuuiuiiii 



509 



MO 



STATISTICAL STATEMENTS. 



flSHl 



O a> 












_r* 






u 



|3"6f. s 



<1 n ^p, 



^t^COrX5^CSMO»^^r~COr~C^CSl«C1f/)COC0005lOc» I 

O (M IM * « M M W O « -* OS (M X O-l I- i O m 1 - C3 Tj If N M i 

O © r>. i^- 1^ in irTo co cm •* e»co o oT rH co t- co is a? to Oie ! 

iH«!» I r^ -sH 00 ■* Ifcl HI OS " C 

M h m IM -^ CO * «5 O IB M (M « « N M ■* ^f « M « O p-I ^ 



I! 



: i i 
: i ; 



IOOW«iMOOHinO'/INOl«cOOeiMNi 
I N O! O O) O O H Ci ir. 75 3 N -j< CI CO !■- CO : 
HO M O N C; -'• J.. ''.•! T. if- -" 1 c-1 t— ! CN) U5> C55 I 

i i( ^i '* ^iii > i. u u '• ,• . . • -• ^ * 
OfflOO'OC © CS1 CC I - CO i 

-f r-t O --S © f " " 



icji-HO •-:•! o co 'C o i-- i^ ;-j w o i>« N id 

I « O N 7) O O CC -? ?1 H t< •* C H H 00 '35 O 

i I ift «f t~ co oo iot»T-* co co co OS ■* r-To e* co ** 

It i— I l-H iH r-i r-i i-t 



! i i I 
III! 



■*t-eeoococ©-*iO£-comcoc»< 

©j c£ ©j <>1 c» © gj CO up' i 



I 00 (M CO IO ^ M M ■+ CI N CI « ( 



'WQffl'N-«HOH 



iffl^om^ooN'* 



:s^s 



M CO Cl CO OS O <M O CO 

cococoi^^iftr— co^ra 



I 



i co t> 3 ca coj 

kCO^OOON' 



KS: 



© eg tr co -* io < 
i is. eft -^ 
■ in i-H O ■* co in ] 



J2 <5» rH |C < 

E3 «* m j.-, i 



loewHocomi 

i rH CO CO CO CO' CJ5 00 CO < 

'COinco»oaiocJi' 



CO © © Co CO' 



gni co cm in 

iScSoSS 



«•*"»■« 88S8Sg{egg8SSSSgSggg§g§ 



San># go >r awo^Ho 
5og cp co co co as a co k o 

OOflSOHM CO© 00 ©00 



oo co CO t- r-l CO i 



3 iMMOciOtOiS-tocI _- to ci CM O m CI o -t ni (O H in 
w lO-^Om'CMiB^o-^^-oirjscjicocoi^-o ca i.- — i<Ot-Oco 

J3 I 00 eg 5 N N M CO O N Ol H O CO tO '"JO 'f O •* Th (M (O C-l CO 

5 I <5» 90 r-< m -*© C7S ■* CO~<N CO CO "# © © 00 CO j> »r» -* CO OS r- 

I CS rlrtHrlMHHMHri — (iHr-lTHrHr-lr-irH 



t>.lT5l*>CO-^-.OT-)COcO-*£>-v< 



© '^cjMacococooiotoM 

•** I CO 1 00 IO CO OS -* CO. CS) l> CO I- 

1 

s 



iOqj-*in*Ot~c»6tDCic)(M'COvntoioto-ni 

1 CS l(S CO CO «5 © ^ Ttl H 6 -» H CI 1^ H '"-1 lT> CO tD 1 
I CD CN *•»• © -* -«*< Cip 01 i-t 00 CN CO co CJ> CO co < >M( 



»ao«r©c 



SS^i 



ISSS 



rrn r 

III ' I 

I ! \2 ! 

Ill I 

L-LJ L 



!SS3Sfc888gSS$8SS3gg!$8 , <Ssgis!88 

'OCROeNCOlr^i^r^lO-^rHr^inOOCOCNl^CSCOCOCOCDCO 
"© of^co 00 CD ©1ft t-T©~.H CM-* CO o^ 00 cN~r- <N 1> CN •* 



-d 3 

gcS 



•Cg^COrH'Wl«t~©iH©C^©-*Csl05Cp-*rt»«t>'l(2t>^® » 

jSJco QOd^ist-. eft •* o -# co 00 r~ co 00 0^ © ^^S H *s Jb^^S^t*. j 

3HH<OrHCo"NU5'*'*NHHHrt«<'*CO'*'*'*ie'»|l»H j 



ICOi>-Hfc»CSlO>CCCDC0^-©©04-«('»-(«O»ftC9«D«l 



I CO CO CO CO CO 1 



'9S3 



© CD *# (WS rH 



iiiii: 

Mill) 
Mill! 
■ I I I I 



Mil 
II II 
IIIII! 
M I I I I 



II I I I II M II II 

I ! II II M I M II 

II II II II I II I I 
II II I I II 
I M II I I I 
I M II II I 
I I I ! I I I I I I I I 



I I 
I I 

I I I 

I I 

I I 

I I 



I I I I 



M II I 



I I 



: 1 



MM 

ill 
Mil 
I I II 
MM 
MM 
MM 
I I I I 



iS333S333S83a 



ScoSffiocic»©cs*' 

t-('iH»^ i-l rH 1*5 rH rH iH I-t 1 






1 Ej 



I! 
§1 

to 

M 

e S 

I s 



STATISTICAL STATEMENTS. 



511 




IlllS^l^ll^^g^^i^^^ 



S x> 04 



r-l r-1 CO © 






W7^ • 5 _. '..■> • iH © 

cooj ol 



S I 
» ■ 



N-MMHO 1 



?3 

■■3 © 



171 • 

!h*8 



r- © £ >C 

<IW9S 






<no~J Si 



JO 53 3J Ifl :- ' 

I - ON--I 

0O?TN;Ol 
!S O 7) W lO 






04*0 »< 






2<H « 



33 1? 



|3 : 
— " 



r, 3s ; 



© © -H -35 If? < 

'"". 04 a S. as 



OD r-l in 34 77 ffl • j I - 

c4 r-- KO oo c- irt i ~ f- 

C3 04 CO © 04 CO 

04 CO CO 



■—i eo >n i 






-/J I — e 
3 "22 



I CO © 
i §4 00 



M 3 M 



to" »" 13 ~" 
in I- 34 -.) 
oi irs i a in 

8"88'; 

CO CO — i • 









a« 



t~- 5<> • © • 35 • fc--Q • I- 04 O 

Om m £3 r-fopf *«■ H'MVQ 

co -A oo r-t cq go mh «? 

^ § S3 33 « ^ 






^32 



© - 



B IC IG B 

W-fc. © <o « 



'5 '--f "" 
., S ' T* "*S r --* 3 -"- -'" " 

04 l'6 



r-~ r- i 7.1 35 — i © yj c4 >fl 

IS 3 3 2i 



3^ 






g> rH © © CO 74 r-: GO l~ r- ■ -. D >K 

ooo4e<s©ix©oa-' o - 

j> to • © • ■* • oo © • o as fe 

«© m S wS th" ^ O* co ° as" sit H» 

04-H rHtftO ■<* -* r» tft o 






I I ! 

;i :. 

I I I! 

i ; i 



-hcdcOOra-^^'^ciScoc^O <& 

mr>l»Offll>NNOr-l:'J© ift 

oj-xo • o • t- »"£» o«s • f.H « 

• -r— ~j~- -04 - 7© . - 






C7 .v; ^O 

© © . 



CO TO I 
© GO 

in 5 

© x> 



© cr> 

OJ 04 



-*< oo -f 

00 ■* • 



>•-* rH"* at) h -o 

-« 04 ■* ~. O O 

to • oo in • -« 



in »o © 

04 0O 



, a; .,,- 
i -co » «< 
i in in 04 

I CO CO r-4 

in >o en 

I O0 OOr-T 



3S8 S 
co in -* 



a s 



r-" 



-,© 8 

as K as 

-* a" 






3 §3 § 

M oi 



O '3 - 
7-1 • ■: 1 

.in ■ 



©COCO © p 

© • r- 04 © 

a" s«{ " 



© -t< CO 04 



>' 



i i i i i i i i i 

d- !| I 13 WJ I ,' ! 

I |g i^ H j€§^ i ^ 



3-^3 



II I' 

i i : 
iir 



i i 



71 "'J ■ 

- 



I i 



i n 



©m 
r; 7! 



188; 

i © © 

i yj h 

life 









loo" I 



I la 
I 12 



It-" I I 



cs -jj sn ix-.i^c 

I ? 3 S te 

i r- oo o r-i i : i r ,n 



I I 



I I 



to - KS 






i© 



I I irH* 



I I I 

: : > 



i i i 



iiii 



! I I 









i i 



I I 



i — -r CO © — 



1 ' ~ ' 
I ii—- 



r i '• 

I j ICO 



' ! S — 



I I 



- — o» o 



r. 



a i 



i i 






-3dO« 



! a I cj w.ti c £ « i 



-n 



£1 rJ C 

y w n 

o 



I I 

I I 
I I I 



. i .3 I 



i : 



:j f^ i^>. i M . : ^ i i 

* ! J 1? J I ! ft ! ! J I 



I IB I 



aa^SJOortXjO.-cJmuu 

|.2.2rJa"J^j5 a ao ' J ^"£S8 2 



8? 



I 



^3- jlli^Jfi! :|i 
•"I I 



3 > l 



fl 



512 



STATTSTICAL STATEMENTS. 



3&S3»R 1 8,SS.glg M31 



1 12 "N "M OS I 

"i <M © -I" 



— < -M — I o © IO © i 



£SS 



2 — < T-* — ' I- 1 CM 

© n -m «r> 

CO -f -t« 00 



- r* io in 



Nn(00(THiO-i™CHXM2"*NOOt»MiPN»]-'W 
3> M -f ■* h 31 N i^ M - 1 - K '-•: ^ i> C; X M ti •(• m ft ^ f 1 ■* a 

,'°J*l t ^l a i I> l 50 .. lt lV VV~ '■\*~~ 1-, °^S«»«eo © 5 in <m t-i-- 
a»-t^ © oo-o cm"© t-T o eo -nT cTm co -* © t~ ©~oi »n co co" " ap -*"-m"co" <M*ifl oo u~eo 
co cm co oo — < i- — * -*• ao-^iSt— i-i« ift 35 co © -J co cm © fecaH i-h -< io 

r-l -f 00 r-l Hli-* BMMW gM SffllO IftOOSO 



ai>.oaooxiNON' 



IQHH< 

: If IS ■* i 



r- © — oo bNji^ H-wsin22i-Ni | oijo»SjON«w5«''H«]i5c:a6 
oo ^ © -# o«s-f axi-<aLoxoa-NNON- , ON'wiMHtHN«MnH»H 



2?: 



00cocOr-ieMt-©iSi 



BBSS' 



Nrto -* ( 



& 2° -g *? $ * 3 *s si : 



© © co 

© © © 
OMX 



5? oScS © 



© h- • 






il"«o»n 



^»'§^^8i 



CO 00 -*i e4 i 



00 CM 

C0 L~ 



CM CM ' 



O ■* ( 
-r CM 

r*< OS 



'iMOseoi-ttiect^i-irjios 



-CLia-j'/iitfacj^ 
i^.~-Tir>icN-)<co©oo^ 
-iiei-« • © 'Mor/s 



. i" — * -h oo rn cm -xi cm 
iC •-> co W (MO i 
• (— 3> © lC 30 35 ■ 



SXNQO-i' 



© © g r" e-, t~ r-l <N t-~ CO r-l 

©00 CO r-i ift 



28 



O CM CO & r-l cm -H 

-NOONXO 



00 © : 



; a 3 a s 



■sa i 






I I 



! I 

I I 
I I 



» JO © 00 C~ 03 CO 70 S 

-cs © © © t^ oo 2? © oo 

-t< -f • c- • «©!-© 



:S8i 



© IC 00 • 
COC^S 



23 s 



in © is cm 



O0 rj I 
CM 00 I 



co©-T , iOx©r-i© 
— r- <<i 5i 3< cm 



39 

©*© 



© cm • 

© © I 



3 2£©" 



ifimiiif 



rJ 1-1 © IC 

CO CO 



fulfil 

i5 cc ir> • t— • 
. . -t^ .© 



© © © cc 

.— ^ . |^ I r ^ _ © V © ri 

CM r- © O: © i— «•) i-i X © 00 © © Csl 

S©* co* ©"©©*--* r-Tc:" 
[;. U<- $1 i» «■ 1^ L^ I- 

-i 60 -* eo © "M ■*■ r-> \c. 



<M © © 1^ (M © ^ © ( 

i— -* i: c^ <-i c. oo © i 

©©,-.© r- -M ^ < 
<M r-i f. 00 — ~» © < 



§ g« 



. 81. 

CC CO © X 

it 93 io i- 

© *1 r<^ 

i«2^ 



r- o 1 C^ >~ © © CO 

' ~. . ■ *i . °i *i 

•O l'~ IT IT- © lO © 

Vr-T «© © 
iN CO iS 



: 



©©-*--T00©©©-rr- 

© 3i » t-*t~ «s ■* 5 ©^©^ 

© ir h«OC ir-rH © 

r. OO t- CO rH CO © X 
lC-*©COr-lCS!ir'CO 

S'eiN©? in 

© © CO 



© CO -r 30 0B 

X © n (M S 

i ■-' * i 



00 — 



jjT^ - 



CT X 



88 



|3gEtSg. 

© oj coP*©fe 

* X Ift r-l r- 

iK — r~ im 



So ^TS 

(M r^ i-i 



CO CM © • 

<a ^ &i i> 
co© t^ «S 



(0-»©hAH 
t-© £> t- © CM 
CO © © ■© • 

© iflS s 






ifeS^.cS' 



!S 



CO © JO r-i X CO 

r-l © r~ . t- • 
.. „ .i^. -co 

© © "r ■"* [^ 

-* CM © 



S i 



«e-^^€^-«-- 



W 53 

•9 2 



iD^ixS 



«'*-;«■*«• O 



C C^2 c 

o o— , o 



I o 



Mr r it antic v: it 
« I 



o 
a 

2^ c £ « 
« o 



iiift|slisl|aIillI!|ll?IaIall|ISls||ll 

JS w S a a, e. i::s 



STATISTICAL STATEMENTS. S13 

Notes to accompanying tables entitled progress of the United 
States in its area, population, and material industries. 

a Exclusive of Alaska and Islands belonging to the United States. 
b Census figures. 

c True valuation of real and personal property, 
d 1904. 

e Total debt prior to 1855. 

f Figures for the years 1800 to 1850 include the total public debt, 
g Gold and silver cannot be stated separately prior to 1876. From 1862 to 
18(5, iuclusive, gold and silver were not in circulation except on the Pacific 
coast, where it is estimated that the average specie circulation was about 
$25,000,000, and this estimate is continued for the three following years under 
the head of gold. After that period gold was available for circulation. 

h Total specie in circulation. Gold and silver not separately stated prior 
to 187G. 

i As the result of a special investigation by the Director of the Mint, a re- 
duction of $135,000,000 was made in the estimate of gold coin in circulation on 
July 1, 1907. as compared with the basis of previous years. 

j Includes notes of Bank of United States; State-bank notes; demand notes 
of 1862 and 1863; fractional currency, 1863 to 1878; Treasury notes of 1890, 1891 
to date: and currency certificates, act of June 8, 1872, 189*2 to 1900. 
k 1905. 

1 Exclusive of neighborhood industries and hand trades, included in previous 
years. 

m "Net ordinary receipts" include receipts from customs, internal revenue, 
direct tax, public lands, and "miscellaneous." 

n "Net ordinary expenses" include expenditures for War, Navy. Indians, 
pensions, interest, and "miscellaneous." 
o Imports for consumption after I860, 
p Domestic exports only after 1860. 
q Includes mules. 

r Doctor Soetbeer's estimate averaged for the period. 
s Estimated by the Director of the Mint, 
t 1814. 
u 1906. 

v Last six months of 1181. 
w 1845. 



t'lieap labor is not the sole end we seek in the United 
States. * * * We desire not only well-paid labor, but want 
that labor steadily employed. — Hon. C. W. Fairbanks, at Kan- 
sas City, Mo., September 1, 1902. 

We want no slave labor. Two million men with their 
blood wiped away slavery forever. We want no labor, 
either white or black, in a virtual state of serfdom. Labor 
must be free, with all the prerogatives which pertain to 
freedom. — Hon. C. W. Fairbanks, at Kansas City, Mo., Sep- 
tember 1, 1902. 

No argument is required to sustain the wisdom of a stable 
currency, for an unstable, fluctuating- circulating medium 
unsettles and disturbs, and brings a train of evils which 
are as merciless and destructive as the ravages of war.— 
Hon. C. W. Fairbanks, in I. S. Senate, March 5, 1900. 

The business men of our community as a whole are honest 
and their methods are sound. The President has never said 
otherwise. Indeed, it is chiefly in the interest of the great 
body of honest business men that he has made his fight 
for lawful business methods. — Hon. Wm. II. Taft, to Mer- 
chants and Manufacturers' Association, Boston, Mass. 

The complaints that the courts are made for the rich 
and not for the poor has no foundation in fact in the atti- 
tude of the courts upon the merits of any controversy which 
may come before them, for the judges of this country are 
as free from prejudice in this respect as it is possible to 
be.— Hon. Wm. H. Taft, to the Civic Forum, New York City. 

Not only is our home market equal to the international 
commerce of the entire world, but it is growing far more 
rapidly than international commerce. The Internal com- 
merce of the I Hited States has grown from 7 billions in 
1 W 70 to '2S billions In 199S. White the International com- 
merce has grown from 11 billions in 1.STO to 2S billions in 
1908; In other words, while the international commerce of 
the world is now two and one-half times as great as in 
I^TO. the internal commerce of the Inited States Is now 
four times as great as in that year and euuals the entire 
commerce between all nations.— O. P, Austin, Chief of Bi- 
reau of Statistics. 



514 



STATISTICAL STATEMENTS. 



Value of gold eoin and bullion imported into and ewported from 
the United States, fiscal years since 1850. 



Year ending 
June 30— 


Import*. 


Exports. 


Excess of 

imports over 

exports. 


Excesa of 

exports over 

imports. 


1850 

1851 

1852 

1853 _• 


$1,776,706 

3,569,090 

3,658,059 

2,427,356 

8,031,984 

1,092,802 

990,305 

6,654,636 

11,566,068 

2,125,897 

2,508,788 

42,291,930 

13,907,011 

5,530,533 

" 11,176,769 

6,498,228 

8,196,261 

17,024,866 

3,787,448 

14,132,588 

12,056,950 

8,888,561 

8,717,458 

8,682,447 

19,503,137 

13,696,793 

"fc, 992, 709 

26,246,234 

13,830,215 

5,624,948 

80,758,396 

100,031,259 

34,377,054 

17,734,149 

22,831,317 

26,691,696 

20,743,349 

42,910,601 

43,934,317 

10,284,8.58 

12,943,342 

18,232,507 

49,899,454 

21,174,381 

72,449,119 

86,384,760 

83,525,065 

85,014,780 

120,391,674 

88,954,608 

44,573,184 

66,051,187 

52,021,254 

44,982,027 

99,055,368 

53,648,981 

96,221,730 

114, 510 ,'249 


$4,560,627 
22,836,913 
40,073,979 
25,442,858 
40,470,260 
55,109,215 
45,000,977 
65,282,653 
50,002,804 
61,108,053 
58,446,039 
27,423,973 
35,439,903 
62,162,838 
100,861,634 
58,381,033 
71,197,309 
$9,026,627 
73,396,344 
38,003,498 
33,635,962 
66,688,208 
49,548,760 
44,a56,715 
34,042,420 
66,980,977 
31,177,050 
26,590,374 
9,204,455 
4,587,614 
3,639,025 
2,565,132 
82,587,880 
11,600,888 
41,081,957 
8,477,892 
42,952,191 
9,701,187 
18,376,234 
59,952,285 
17,274,491 
86,362,654 
50,195,827 
108,680,844 
76,978,061 
66,468,481 
112,409,947 
40,361,580 
15,466,391 
87,522,085 ' 
48,266,759 
58,185,177 
48,568,950 
47,090,595 
81,459,986 
92,594,024 
38,573,591 
51,399,176 





$2,783,921 
19,267,823 
36,415,920 
23, 015,. 502 
37,438,296 
54 016 413 


1&54 _______ 

1855 . 





1856 _, 

1857 _ 




44,010,672 
58,578,017 
38,436,736 
58,982,656 
• 55,937,253 


1858 

1859 _ ___»_ 





1860 

1861 „ _ 


~~~$l£_67~957~~ 


1882 

1868 

1864: 


21,532,892 
56,632,300 
89,484,80.5 


1865 _. 

1866 ._ 




51,882,805 
63,004,048 
22; 001, 761 


1867 


;_:::__::::::::: 


1868 , 

1869 

1870 ___ 


64,658,901 
21,870,930 
21,579,012 


1871 _ ____ 




59,802,647 


1872 _ 




40,831,302 
36,174,268 


1873 __ 




1874_ 




14,539,283 


1875 




53,284,181 


1876 _ 




23,184,341 


1877 




344,140 


1878 

1S79 _ 

1880 

1881 _ 


4,125,760 
1,037,334 
77,119,371 
97,466,127 
1,789,174 
6,133,261 


1882 _ 




1883 




1884 


18,250,640 


1883 


18,213,804 




1888. __ 


22,208,842 


1887 

1888. __ _ 


33,209,414 
25,558,083 




1889 _ 


49,667,427 


1890 

1891 _____ 




4,331,149 
88,130,087 


1892 

1893 

1894 . 

1895 

1896 

1897 _ _ 


44~653 ~2oT~ 
104,985,283 
51,432,517 


495,873 

87,506,463 

4,528,942 

80,083,721 

78,884,882 


1S98 

1899 

1900 _ 


--------g 


1901 

1902 

1903 

1904 __ _ ___ 


12,866,010 
3,452,304 

lf~595~3S7~~ 


2408^568 


1905 


88,945,063 


1906 

1907 


57,648,139 
63,111,073 





The so-called nogro domination is nothing "but a dream 
and a nightmare of the past.— Hon. Wm. H. Taft, at Plymouth 
Church, Brooklyn. 

I fancy the people will he found pretty well content with 
an Administration which did not hesitate to say, "Let no 
gtrilty man escape," and then enforced that' order.— Hon. Al- 
bert J. Beveridge, in the Senate, April 1, 1904. 

The greatness of our Nation, as shown in the struggle 
of the Civil "War, is now everywhere recognized, and in 
the perspective of forty years there is none to decry or 
belittle it.— Hon. Wm. H. Taft, at Riverside Parle. New Yorlc. 



A condition of prosperity came with the policy of pro- 
tection and a condition of adversity come when the theory 
of free trade was yielded to and this has been without an 
exception.— Hon. P. P. Campbell, in Congress, April 1, 1904. 

Class appeals are dishonest; * * * they calculate t* 
sepaiJJte those who should be united, for our economic in- 
terests arc common and indivisible.— Maj. McKinley to Com- 
mercial Traveling; Men's Republican Club, September iiO, 

1800. 



STATISTICAL STATEMENTS. 



615 



Production of gold and silver by principal countries, in 1906. 

[Includes all countries having a product of more than $1,000,000 of either cold 

or silver.] 



4 


Gold. 


Silver. 


Country. 


Value. 


Coining 
value. 


Commercial 
value. 


North America: 


$94,373,800 
18,534,700 
12,023,900 

135,472,500 
82,391,400 

19,494,700 
2,615,400 

SO, 100 
41,200 


$78,073,600 

71,402,4* 

11,078,700 

908,200 

18,407,700 

214,900 
2,335,400 
7,365,100 

869,400 
5,255,100 
1,071,900 

4,004,200 
514,400 
986,900 


$38,2^6,400 

37,381,400 

5,800,000 

17^,500 


Mexico 

Canada 




9,637,000 


Europe: 

Russia 

Austria-Hungary 

Germany 

Italy 

Spain 


118,500 
1.222,700 
3,855,900 

455,200 
2,751,200 

561,200 


South America: 

Bolivia 

Chile 

Colombia 

Brazil , 


18,800 
948,500 
2,190,800 
2,403,000 
1,607,700 
1,859,700 
829,000 
1,910,700 

3,225,100 

1,839,000 

2,250,000 

12,087,700 

1,522,200 


2,096,800 
269,300 
516,700 


Guiana (British 

Guiana (French) 

Peru 

Central America „ 

Japan 

China __ . 




M73~I6o~~ 

2,159,400 
3,169,400 


5"5i:U900 
1,130,500 

1,650,800 








British India _. 






East Indies (British) 











Note.— Gold production of the United States In 1907 estimated at 90 million 
dollars; of the world, 403 millions. 



"We shall always need protective duties as loner as ovr 
people insist upon a higher standard of wages and seale of 
living than prevail abroad.— Jas. M. Swank. 

Arraying labor against capital is a pnblic calamity and 
an irreparable injury to both. — Maj. McKinley to Commercial 
Traveling Men's Republican Club, September 26, 1896. 

It is true, as Peter Cooper well saidt "No goods purchased 
abroad are cheap that take the place of our own labor and 
our own raw material." — H. K. Thurber, in the American 
Economist. 

The man or party that would seek to array labor against 
capital and capital against labor is the enemy of both.— 
Maj. McKinley at Canton, September 18, 1S96. 

The rich manifestations of our commercial power, our 
military and naval strength, great and splendid as they are, 
are not to be counted when compared with the moral and 
intellectual grandeur of our people.— Hon. C. W. Fairbanks, 
at Baldwin, Kas., June 7, 1901. 

No lessons of experience and actual trial have been more 
valuable to us in -working out our problem in the Philip- 
pines than those of General William Armstrong and Booker 
Washington In the uplifting of the negro race in the United 
States.— Hon. Win. H. Taft, at Plymouth Church, Brooklyn. 



While I fully recognize the fact that the Fifteenth Amend- 
ment has not accomplished all that it was intended to 
accomplish, and that for a time it seemed to be a dead 
letter, I am confident that in the end it will prove to be 
a bulwark equally beneficial with that of the Thirteenth 
and Fourteenth Amendments to an unfortunate and down- 
trodden, struggling race, to whom, in view of the cir- 
eumstaine.es under which they were brought to this country 
and the conditions In bondage in which they were continued 
for more than two i-cntuiics, we Owe every obligation of 
vnr^ and protection. That -which has been done for the 
benefit of the negro race is the work of the Republican 
party. It is one of those great issues presented by the ex- 
igencies of the Avar which the party had the firmness and 
courage to meet.— Hon. Win. H. Taft, at Kansas City. Mo. 



516 



STATISTICAL STATEMENTS. 



Production of Gold and Silver in the United States from 1800 

to 1907. 



Tear. 


Gold. 


Silver. 


Total. 


1800 _ 








1810 


d$2,463 





d$2,463 


1820 __ 


d73,H2 


_ 


d73,112 


1830 — 


d564,950 


$253,400 


d818,350 


1810 


dll,697,829 


252.300 


dll.950,129 


1850 


50,000,000 


50,900 


50,050,900 


1851- — 


55,000,000 


51,700 


55,051,700 


1852 


60,000,000 


51,300 


60,051,300 


1853 


65,000,000 


52,200 


65,052,200 


1854. - _ 


60,000,000 


52,200 


60,052,200 


1855 


55,000,000 


52,000 


55,052,000 


1856 _ 


55,000,000 


52,000 


55,052,000 


1857 


55,000,000 


52,400 


55,052,400 


1858 


50,000,000 


52,000 


50,052,000 


1859_ 


50,000,000 


105,000 


50,105,100 


1860_._ 


46,000,000 


156,800 


46,156,800 


1861 


43,000,000 


2,062,000 


45,062,000 


1862 


39,200,000 


4,684,800 


43,884,800 


1863. _ _. 


40,000,000 


8,842,300 


48,842,300 


1861 


46,100,000 


11,413,000 


57,543,000 


1865— __ _ 


53,225,000 


11,642,200 


64,867,200 


1866 _ 


53,500,000 


10,356,400 


63,856,400 


1867 


51,725,000 


13,866,200 


65,591,200 


1868 


48,000,000 


12,306,900 


60,306,900 


1869 


49,500,000 


12,297,600 


61,797,600 


1870 


50,000,000 


16,434,000 


66,434,000 




43,500,000 


23,588,300 


67,088,300 


1872 


36,000,000 


29,396,400 


65,396,400 


1873 


36,000,000 


35,881,600 


71,881,600 


1874 


33,490,900 


36,917,500 


70,408, tOO 


1875 


33,467,900 


30,485,900 


63,953,800 


1676 


39,929,200 


34,919,800 


74,819,000 


1877 


46,897,100 


36,991,500 


83,888,900 


1878 


51,206,400 


40,401,000 


91,607,400 


1879 


38,900,000 


35,477,100 


74,377,100 


1880 • 


36,000,000 


31,717,000 


70,717,000 


1881 


34,700,000 


37,657,500 


72,357,500 


1882 


32, 5 JO, 000 


41,105,900 


73,605,900 


1883 


30,000,000 


39,618,400 


69,618,400 


1881 


30,800,000 


41,921,300 


72,721,300 


1885 


31,801,000 


42,503,500 


74,301,500 


1886 


35,869,000 


39,482,400 


75,351,400 


1887 


33,136,000 


40,887,200 


74,023,200 


1888. 


33,167,500 


43,045,100 


76,212,600 


1889 


. 32,967,000 


46,838,400 


79,805,400 


1890 


32,845,000 


57,242,100 


90,087,100 


1891 


33,175,000 


57,630,000 


90,905,000 


1892 


33,015,000 


55,662,500 


88,677,500 


1893 


35,955,000 


46,800,000 


82,755,000 


1894 , 


39,500,000 


31,422,100 


70,922,100 


1895 


46,610,000 


36,445,500 


83,055,500 


1896 


53,088,000 


39,654,600 


92,742,600 


1897 


57,363,000 


32,316,000 


89,679,000 


1898 


64,463,000 


32,118,400 


96,581,400 


1899 


71,053,400 


32,858,700 


103,912,100 


1900 


79,171,000 


35,741,100 


114,912,100 


1901 


78,666,700 


33,128,400 


111,795,100 


1902 


80,000,000 


29,415,000 


109,415,000 


1903. 


73,591,700 


29,322,000 


102,913,700 


1904._ 


80,464,700 


33,456,000 


113,920,700 


1905 __ 


88,1^0,700 


34,222,000 


122,402,700 


1906 


94,373,800 


38,256,400 


132,630,200 


1907 ___. 


189,620,399 


137,571,580 


127,191,979 





d Estimate averaged lor the period. 



A tax, and a stiff one, upon foreign manufacturers would 
be one of the most popular as well as one of the wisest 
imposts ever levied in this country. Eit— er the foreign man- 
ufacturer would pay the duty or the home manufacturer 
would get the trade. — London Daily Telegraph. December 
10, 1903. 

In the first place it is said that the policy of the admin- 
istration has been directed for the last four years against 
organized capital, and that it has thereby frightened in- 
vestors. I deny it. The course of the administration has 
been directed against such organized capital as was vio- 
lating the statutes of the United States— and no other. It 
had every consideration and desire to aid and assist organ- 
ized capital which was engaged in legitimate business*.— Hon. 
Win. H. Taft, to Merchants and Manufacturers' Association, 
Boston, Mass. 



STATISTICAL STATEMENTS. 



•IT 



Coinage of the United States mints from 1850 to 1907. 
[From the report of the Director of the Mint.] 



Calendar year. 



Total coinage. 



Gold. 



Silver. 



Minor. 



Total. 



1850 
1851 
1852 
1853 
1854 
1855 
1856 
1857 
1858 
1859 
1860 
1861 
1862 
1863 
1861 
1865 
1866 
1867 
1858 
1869 
1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1881 
1882 
1883 
188 1 
1885 
1886 
1887 
1888 
1889 
1800 
1891 
1802 
1893 
1891 
1805 
1806 
18°~ 
1898 
1809 
1000 
1001 
1902 
1903 
1904 
1005 
1906 
1907 



Dollars. 
31,981,738.50 
62,614,492.50 
56,846,187.50 
39,377,909.00 
25,915,962.50 
29,387,968.00 
36,857,768.50 
32,214,040.00 
22,938,413.50 
14.780,570.00 
23,473,654.00 
83,305,530.00 
20,875,997.50 
22,445,482.00 
20,081,415.00 
28,295,107.50 
31,435,945.00 
23,828,625.00 
19,371,387.50 
17,582,987.50 
23,198,787.50 
21,032,685.00 
21,812,645.00 
57,022,747.50 
35,254,630.00 
32,951,910.00 
46,579,452.-50 
43,099,864.00 
49,786,052.00 
39, OS0, 030.00 
62,308,270.00 
96,850,890.00 
65,887,685.00 
29,241,900.00 
23,901,756.50 
27,773.012.50 
28,915,512.00 
23,972,383.00 
31,380.808.00 
21,413,031.00 
20,467,182.50 
29,222,005.00 
34,787,222.50 
56,997,020.00 
79,546.160.00 
59,616.357.50 
47,053,060.00 
76,028,485.00 
77,985,757.00 

111.344,220.00 
99.272,942.50 

101.735.187.50 
47,181.932.50 
43.683.070.50 

233.402,428.00 
40,638,441.00 
77,538,015.00 

131,907,490.00 



Dollars. 

1,866,100.00 

774,397.00 

999,410.00 

9,077,571.00 

8,619,270.00 

3,501,245.00 

5,142,240.00 

5,478,760.00 

8,495,370.00 

3,284,4.30.00 

2,259,390.00 

3,183,740.00 

1,252,516.50 

809,267.80 

609,917.10 

691,005.00 

982,409.25 

908,876.25 

1,074,343.00 

1,266,143.00 

1,378,255.50 

3,104,038.30 

2,504,488.50 

4,024,747.60 

6,851,776.70 

15,317,893.00 

24,503,307.50 

28,393,045.50 

28,518,850.00 

27,569,776.00 

27,411,693.75 

27,940,163.75 

27,973,132.00 

23,216,968.45 

28,531,866.15 

28,962,176.20 

32,086,709.90 

35,191,081.40 

33,025,603.45 

35,496,683.15 

30,202,908.20 

27.518,858.60 

12,611,078.00 

8.802,797.30 

0, 200, 350. 85 

5,698,010.25 

23,089,899.05 

18,487,297.30 

23,031,033.45 

26,061,519.90 

36.315,321.45 

30,838,460.75 

30,028,167.20 

19,874,440.00 

15,695,600.95 

6,332,180.90 

10,651,087.85 

18,178.485.75 



Dollars. 
44, 467. .50 
99,635.43 
50,630.91 

67, 05 J. 78 

42,633.35 

16,030.79 

27,106.78 

178,010.46 

246,000.00 

364,000.00 

205,660.00 

101,000.00 

280,7.50.00 

498,400.00 

926,687.14 

968,552.86 

1,012,960.00 

1,819,910.00 

1,697,150.00 

963,000.00 

350,325.00 

99.890.00 

369,380.00 

379,453.00 

342,475.00 

246.970.00 

210,800.00 

8,525.00 

58,186.50 

165,003.00 

391,305.95 

428,151.75 

960,400.00 

1,601,770.41 

796,483.78 

191,622.04 

313,186.10 

1,215.686.26 

012,200.78 

1,283,408.49 



1,381,702.14 

1,312,441.00 

961,480.42 

1,131,931.70 

438,177.92 

882.430.56 

832,718.93 

1,526,100.05 

1,121,835.14 

1,837,451.86 

2,031.137.39 

2,120,122.08 

2,417.796.17 

2,251.281.18 

1.683.520.35 

2,208.555.43 

2,800,008.80 

3,042,126.18 



Dollars. 

33,892,306.00 
63,488,524.93 
,57,896,228.44 
48,522,539.78 
31,577,870.85 
32,905,243.79 
42,027,115.28 
37,870,810.46 
31,679,783.50 
18,129,020.00 
25,938,701.00 
87,280,270.00 
22,409,261.00 
23,753,119.80 
21,618,019.24 
29,954,665.36 
33,461,314.25 
26,557,411.25 
22,142,8^0.5) 
19,812,130.50 
24,927,368.00 
24,236.613.30 
24,686,513.50 
61,426,950.10 
42,448,881.70 
48.516,803.00 
71,203,560.00 
72,401,431.50 
78,363,088.50 
66,814,850.00 
90,111,368.70 
125,219,205.50 
91,821,217.00 
60,003,728.86 
53,323,106.43 
56,926,810.74 
61,375,438.00 
60,370,150.63 
65. 31^,615. 23 
58.191,022.64 
61.05t.882.81 
58.053.3O2.60 
48,380,780.92 
66,031,710.00 
80.lSi.T88.77 
66,106.708.31 
70,975.677.93 
06.011,882.35 
102,141,625.59 
130,213.101.76 
137.6<0, '01.31 
131,603,770.33 
70.660.S05.87 
65,800,601.68 
250.7S1,'>67.30 
58.261,177.33 
91,0«0.0tl.65 
148,128,051.93 



e credit of the Government, the integrity of 



The credit of the Government, the Integrity of Its cur- 
rency, nnd the Inviolability of its obligations mnst be pre- 
served.— President McKlnley's Inaugural. 

Evils are to he suppressed by definite and practical meas- 
ures—not by oratory or denunciation.— Hon. Wm. H. Taft, at 
Greensboro, North Carolina. 

Tin* snecess of the United States in material development 
i* <li«' most illustrious of modern times. It is my deliberate 
Judgment dint the prosperity of America Is doe mainly to its 
system of protective laws. — Prince Bismarck. 



T**e Democratic leaders have been for years making loud 
dceln rations against corporations nnd trusts and railroads 
nnd linve, nevertheless, Instituted no legislative steps in 
all this time for the purpose of restraining utilises. They 
are now indignant that the Repnblicnn party, in carrying 
out the promises of Its own platform, is putting Into prac- 
tice the principles which they, with a superb self-compla- 
cency, claim are really covered by a Democratic patent.— 
Hon. Wm. H. Taft, at Greensboro, North Carolina. 



518 



STATISTICAL STATBMBWT8. 



Production of gold and silver in the world since the discovery of 

America. 

[From 1493 to 1885, from a table of averages compiled by Dr. Adolph Soetbeer; 
since the latter date, the estimates of the Director of the Mint.] 



Period. 



1493-1520. 
1521-1544. 
1545-1560. 
1561-1580. 
1601-1620. 
1581-1600. 
1621-1640. 
1641-1660. 
1661-1680. 
1681-1700. 
1701-1720. 
1721-1740. 
1741-1760. 
1761-1780. 
1781-1800. 
1801-1810. 
1811-1820. 
1821-1830. 
1831-1840. 
1841-1850. 
1851-1855. 
1856-1860. 
1861-1865. 
1866-1870. 
1871-1875. 
1876-1800. 
1881-1885. 
1886-1890. 

1891 . 

1892 

1893 

1894 

1895 

1896 

1897 

1898 



1900. . 
1901. . 
1902. . 
1903.. 
1904-. 
1905- 
1906_. 
1907_. 



Total 



Gold. 



Total for period. 



Ounces, 
fine. 



5,221,160 

5,524,656 

4,377,544 

4,398,120 

5,478,350 

4,745,340 

5,336,900 

5,639,110 

5,954,180 

6,921,895 

• 8,243,260 

12,268,440 

15,824,230 

13,313,315 

11,438,970 

5,715,627 

3,679,568 

4,570,444 

6,522,913 

17,605,018 

32,051,621 

32,431,312 

29,747,913 

31,350,430 

27,955,068 

27,715,550 

23,973,773 

27,306,411 

6,820,194 

7,094,268 

7,618,811 

8,764,362 

9,615,190 

. 9,783,914 

11,420, 

13,877,806 

14,837,775 

12,315,135 

12,625,257 

14,354, 

15,852,620 

16,801,372 

18,268,' 

19,366,550 



584,231,094 



Value. 



Dollars 

107,931 
114,205, 
90,492 
90,917 
113,248, 
98,095 
110,324 
116,571 
123,081 
143,088 
170,403 
253,611 
327,116 
275,211 
236,464 
118,152 
76,063 
94,479 
134,841 
363,928 
662,566 
670,415 
614,944 
648,071 
577,883 
572,931 
495,582 
564,474 
130,650 
146,651 
157,494 
181,175 
198,763 
202,251 
236,073 
286,879 
306,724 
254,576 
260,992 
296,737 
327,702 
347,377 
377,647 
400,342 
403,000 



Annual 
average 

for 
period. 



Value. 



12,480,180,600 



Dollars 

3,855,000 

4,759,000 

5,656,000 

4,546,000 

5,662,000 

4,905,000 

5,516,000 

5,828,000 

6,154,000 

7,154,000 

8,520,000 

12,681,000 

16,356,000 

13,761,000 

11,823,000 

11,815,000 

7,606,000 

9,448,000 

13,484,000 

86,893,000 

132,513,000 

134,083,000 

122,989,000 

129,614,000 

115,577,000 

114,586,000 

99,116,000 

112,895,000 

130,650,000 

146,651,500 

157,494,800 

181,175,600 

198,763,600 

202,251,600 

236,073,700 

286,879,700 

306,724,100 

254,576,300 

260,992,900 

296,737, 

327,702,200 

347,377,200 

377,647,700 

400,342,100 

403,000,000 



Silver. 



Total for period. 



Ounces, 
fine. 



42,309,400 

69,598,320 
160,287,040 
192,578,500 
271,924,700 
269,352,700 
253,084,800 
235,530,900 
216,691,000 
219,841,700 
228,650,800 
277,261,600 
342,812,285 
419,711,820 
565,235,580 
287,469,225 
173,857,555 
148,070,040 
191,758,675 
250,903,422 
142,442,986 
145,477,142 
177,009,862 
215,257,914 
316,585,069 
893,878,000 
460,019,722 
544,557,155 
137,170,919 
153,151,762 
165,472,621 
164,610,394 
167,800, 
157,061,370 
160,421,082 
169,055,253 
168,337,453 
173,591,364 
173,011,283 
162,763,483 
167,689,322 
164,195,266 
169,588,839 
165,754,843 



9,851,584,085 



Coining 
value. 



Dollars 

54,703, 
89,986, 
207,240, 
248,990, 
851,579, 
348,254, 
327,221, 
304, &25, 
280,166, 
284,240, 
295,629, 
358,480, 
443,232, 
542,658, 
730,810, 
371,677, 
224,786, 
191,444, 
247,930, 
324,400, 
184,169, 
188,092, 
228,861, 
278,313, 
409,822, 
509,256, 
594,773, 
704,074, 
177,352, 
198,014, 
213,944, 
212,829, 
216,566, 
203,069, 
207,413, 
218,576, 
217,648, 
224,441, 
223,691, 
210,441, 
216,810, 
212,292, 



214,309,200 



12,711,478,300 



Annual 
average 

for 
period. 



Coining 
value. 



Dollars. 

1,954,000 

3,740,000 

12,952,000 

12,450,000 

17,579,000 

17,413,000 

16,361,000 

15,226,000 

14,008,000 

14,212,000 

14,781,000 

17,924,000 

22,162,000 

27,133,000 

36,540,000 

37,168,000 

22,479,000 

19,144,000 

24,793,000 

32,440,000 

36,834,000 

37,618,000 

45,772,000 

55,663,000 

81,864,000 

101,851,000 

118,955,000 

140,815,000 

177,352,300 

198,014,400 

213,944,400 

212,829,600 

216,566,900 

203,069,200 

207,413,000 

218,576,800 

217,648,200 

224,441,200 

223,691,300 

210,441,900 

216,810,300 

212,292,900 

219,266,300 

214,309,200 



The depression and ruin that was inaugurated with that 
tariff revision by the Democratic party is vivid in the minds 
of all.— Hon. P. P. Campbell, 4n Congress, April 1, 1904. 

The railways can blame no one but themselves if the 
revelation of the flag-rant violations of law and of their 
unjust administration of a public trust have led to an out- 
burst of popular indignation and have brought on temporary 
excess.— Hon, Wm. H. Taft, at Columbus, Ohio. 

The nation has appreciated the valor and patriotism of 
the black men of the United States. They not only fought in 
Cuba, but in the Philippines, and they are still carrying the 
flag as the symbol of liberty and hope to an oppressed peo- 
ple.— President McKinley to colored citizens, at Chicago, Oct. 

Much money has been spent on sea harbors and the 
mouths of our rivers at the sea, but comparatively little 
upon the internal waterways which nature has furnished 
to the country, and which form highways of travel from 
one border of it to the other. The call from the country for 
the development of a well-thought-out plan for the improve- 
ment of all these waterways is so emphatic that it cannot 
longer be resisted.— Hon. Win. H. Taft, at Kansas City, Mo. 



STATISTICAL STATEMENTS, 



519 



Growth in coal production in free-trade Great Britain, compared 
with that of the protection countries, United States, Germany, 
and France; also the total coal production of the world and 
the per cent supplied by the United States at quinquennial 
periods from 1810 to 1895, and annually from 1896 to 1906, in 
tons of 2,000 pounds. 

[Prom reports of the United States Geological Survey.] 



Year. 


United 
States. 


Great 
Britain. 


Germany. 


France. 


Total pro- 
duction 
of the 
world. 


Per 

cent 

of 
U.S. 


1870 

1875 

1880 

1885 

1890 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904 

1905 

1906 


Short tons. 
33,035,580 
52,348,320 
71,481,570 
111,160,295 
157,770,963 
193,117,530 
191,986,357 
200,229,199 
219,976,267 
253,741,192 
269,684,027 
293.299,816 
301.590,439 
357,. 3.56, 416 
351,816,398 
392, 722. <• 35 
414,157,278 


Short tons. 
123,6S2,935 
149,303,263 
16 ±,605,738 
178,473,588 
203,408,003 
212,320,725 
218,804,611 
226,385,523 
226,301,058 
246,506,155 
252,203,056 
245,332,578 
251,346,447 
257,974,605 
260,319,665 
264,464,408 
281,195,743 


Short tons. 

37,488,312 

52,703,970 

65,177,634 

81,227,255 

98,398,500 

114,561,318 

123,943,159 

132,762,882 

144,283,196 

149,719,766 

164,805,202 

168,217,082 

165,826,496 

179,076,630 

186.785.378 

19 1,573,074 

222,350,526 


Short tons. 
14,530,716 
18,694,916 
21,346,124 
21,510,359 
28, 756; 638 
30,877,922 
32,167,270 
33,938,987 
35,656,426 
36,215,026 
36,811,536 
35,596,536 
33,286,146 
38,466,878 
37,663,349 
38,951,360 
37,828,931 


Short tons. 
234,850,088 
308,479,177 
369,413,780 
447,783,802 
563,693,232 
644,177,076 
664,001,718 
697,213,515 
738,129,608 
801,976,021 
846,041,848 
870,711,044 
888,453,950 
972,195,531 
983,527,562 

1,034,156,604 
*1, 106, 478, 707 


14.07 
16.97 
20.62 
24.82 
27.99 
29.98 
28.92 
28.72 
29.80 
31.63 
31.88 
33.69 
33.95 
36.76 
35.78 
37.98 
37.43 



•Latest available figures are used in making up totals for 1906. 
(From page 620, Mineral Resources of the United States, 1906.) 



Our exports to the Orient in 1907 compared with 1890. 

The following table shows the exportation of leading articles 
from the United States to China, Hongkong, Japan, Asiatic Rus- 
sia, Australasia, Hawaii, and the Philippine Islands in the fiscal 
years 1890, 1897, and 1907, respectively: 



Articles. 



1890. 



1897. 



1907. 



Iron and steel, manufactures of 

Cotton cloth 

Mineral oils , 

Breadstuffs 

Cotton, and manufactures of 

Tobacco, and manufactures of 

Wood, and manufactures of 

Chemicals 

Leather, and manufactures of 

Paper and manufactures of 

Carriages and cars — — 

Provisions 

Agricultural implements 

Fertilizers 

Fruits and vegetables 



Dollars. 

2,928,971 

1,532,181 

7,246,111 

3,521,936 

85,211 

2,017,508 

2,117,058 

1,070,462 

732,260 

128,277 

424,952 

518,190 

575,254 

114,988 

441,430 



Dollars. 

7,651,014 

7,767,361 

10,785,435 

8,265,865 

2,354,758 

2,127,181 

2,413,205 

1,597,054 

1,129,933 

781,055 

1,161,365 

602,120 

527,130 

324,006 

533,482 



Dollars. 

23,771,958 

8,544,451 

15,022,782 

19,369,831 

14,317,0S5 

6,151,259 

6,166,544 

2,605,447 

3,786,130 

2,007,977 

1,808,001 

2,177,441 

1,968,416 

883,320 

1,277,127 



I believe that the protective lyatem has been a mighty 
instrument for the development of onr national wealth and 
a most powerful agency in protecting the homes of oar 
vrorkingmen. — Harrison. 

The highest claim of William McKinley for the gratitude 
of his countrymen is that, in spite of the altuso and con- 
tumely that won heaped upon his head for this policy, he 
placed our country in the forefront of nations as a civil izcr 
and nplifter of nnfortunate peoples. — Hon. Wm. II. Taft, at 
Cleveland, Ohio. 

I believe that a navy is the greatest insurer of peace 
that «e could possibly have — a navy commensurate with our 
resources, and commensu rn te with our coast line, and com- 
mensurate with the number of dependencies we have, and 
commensurate with our population* and commensurate with 
our Influence as a world power. — Hon. Wm. II. Taft, at Cleve- 
land. Ohio. . 

36 



530 



STATISTICAL STATEMENTS. 



Relative advance in prices of free and dutiable articles, respec- 
tively {denominated by the Democratic Campaign Book as 
"Controlled by Trusts"). 18U6 to 1901. 

Items on free list. 



July, 
1896. 



Anthracite stove coal (f. o. b 

New York) per ton.. $3,881 

Anthracite broken coal (f. o. 

b. New York) per ton.. 

Copper, lake, ingot (New York) 
per pound- 
Jute, spot UO 

Petroleum, crude (at well) 

per barrel- 
Petroleum, refined— per gallon- 
Rubber, island per pound 

Sisal, spot ._ ?___do 

Binder twine do 



3.228 



115 

035 



1.0825 



.84 



July, 
1901. 



$1,236 



.17 
.035 

.1337 

.069 

.86 

.0562 

.0975 



July, 
190^. 



1.1225 
.0325 



1.22 
.071 



.095 
.1125 



July, 


Janu- 


1903. 


ary, 
1904. 


>4.80 


$4.75 


4.55 


5.00 


.1425 


.125 


.045 


.045 


1.50 


1.85 


.14 


.15 


.87 


.94 


.0762 


.075 


.145 


.145 



b r, 

1107. 



$4.9503 

4.2047 

.14 
5.5 

1.78 
.1350 

.78 



Items on dutinbSe list. 



Alcohol (94 per cent)— per gal- 
Brick per thousand-. 

Bread, Boston crackers. per lb_. 

Cotton flannels per yard.. 

Cement, Rosendale per bbL. 

Pish, canned salmon.. per doz_. 
Ginghams per yard- 
Glassware, pitchers per doz_. 

Wire nails per keg— 

Cut nails do 

Fresh beef sides per lb.. 

Salt beef per bbl.. 

S.ilt pork do 

Hams, smoked do 

Pig iron, foundry, Philadelphia 
per ton- 
Rice per lb- 
Sugar, centrifugal do... 

Sugar, granulated do... 

Steel rails, Pittsburg. .per ton.. 



Ju y, 
1MW. 



$2.31 
5.25 

.065 

.065 

.85 
1.65 

.0425 
1.25 
3.15 
2.90 

.075 
16.00 
8.25 

.10 

12.75 
.0525 
.035 
.016 

28.00 



Julv, 
IWol. 



July 

14402. 



July, 

I9v« 



$2.43 


$2.51 


5.75 


tf.25 


.08 




.0625 




.100 


.95 


1.70 


1.65 


.0475 




1.30 


1.30 


2.40 


2.10 


2.10 


2.05 


.09 




21.50 


22.i 50 


16.75 


19.75 


.115 


.125 


15.87 


22.75 


.0537 


.0575 


.0125 


.0337 


.0521 


.0175 


28.00 


28.00 



$-2 . +8 

5.25 

.08 

.08 

.90 

1.65 

.08 

1.30 

2.05 

2.20 

1.25 

11.50 

17.75 

.1375 

18.50 
55 

0356 
047 

28.00 



Janu- 
ary, 

1904. 



$2.40 
"~07~ 



.95 
1.65 

.08 
1.15 
2.00 
1.95 

.125 
11.00 
13.50 

.12 

15.00 
.01 
.0347 
.0136 

28.00 



Decem- 
ber, 
1907. 



$2.63 
5.50 

.09 
a. 10 

.95 
bl.65 
c.07 
1.05 
2.15 
2 . 1 250 

10.6250 

15. I 50 

. 1068 



t.'»l 
.06 
037)4 
.0455 
.28 



a 2% yards to the pound. 



b August, 1907. 



c Amoskeag. 



The way to help labor Is to provide it with steady work 
and good wages and then to have those good wages always 
paid in good money. — Maj. McKinley to delegation of work- 
men, August 24, 1S96. 

I believe it is a good deal better to open the mills of the 
United States to the labor of America than to open tbe mints* 
of the United States to the silver of the world.— Maj. McKinley 
to his comrades of the 23d Ohio Regiment, at Canton. Au- 
gust 12, 1896. 

Th* avowed policy of the National admin istrutinn of 
these two Presidents has been and is to govern the Islands, 
having regard to the interest and welfare of the Fiiig>ino 
people, ana by the spread of general primary and industrial 
education and by practice in partial political control 
to lit the people themselves to maintain a stable and well- 
ordered government affording equality of right and oppor- 
tunity to all citizens. — Hon. Wm. H. Taft, in special report 
to the President. 



In spite of the* general comfort, there have been made 
manifest by signs not to be misunderstood, a quickening 
of the nubile conscience and a demand for the remedy of 
abuses, the outgrowth of this prosperity, and for a higher 
standard of business integ'rity. Every lover of his country 
should have a feeling of pride and exaltation in this evi- 
dence that our society is still sound at the core. — Hon. Wm. 
H. Taft, at Columbus, Ohio. 



STATISTICAL STATEMEXT8. 



52i 



Commerce of the "World Since 1830. 

This table showing- the commerce of the principal countries 
of the world at intervals from 1830 to 1907 will be useful for 
reference in considering the question as to the effect of high or 
low tariffs upon trade of the countries utilizing these respec- 
tive systems. It will be noted that the commerce of the most 
highly protective countries shows in nearly all cases a higher 
percentage of gain, comparing 1907 with 1897 or 1890, than 
does that of the United Kingdom, the sole remaining represent- 
ative of the low tariff, or free trade principle. The foreign 
commerce of the United Kingdom in 1907 is 47 per cent greater 
than that of 1890; that of France, 50 per cent; Germany, 109 per 
cent; and the United States, 116 per cent greater in 1907 than in 
1890. 



si g 

oo S 

sc 



« 2 

i: 






2 °2 



us^Ms aw co co rH ra (N co 



un • 



T* — "N" 



OS «o 55 -* ( 



KO Lft 1» o o o 

t-i -h -m -h ir n 

3i 30 » -* ift O 



5? 3> SO § -(i lO 

lO -# O- 1ft -*< "* i 



1=2 3} IN CO XI 

1 Ift N (B -*( N 



HOlMNOf^r-OOTSXtH 

HNrtM-fOMr-OHNIO 



lOiiCDMH 



ij^. 50 •«* <£> IN 



1 oo ca <n &> < 



00 CO CO rH <3> -H ( 

co t-i ift m t* 35 1 



lXe«cS«aQl3<N<S&W-*rHtf3 

I ^f CO rH rH iH OJ OJ CO r-t <N CO 



O.t>.0>SQl5-*'003J5Oh-c3cOr-IC0 

^r-l'XirtO-*'<*lr-(^H!3JC0C35O<N 
IOMNHHH <N) rH <N rH CO 



I I I 

! I ! 



SIS- 



!W ! 
. « ! 



i : i 



•a 



OM 



.2 ! ! io ! 

S I ! ' 

1 ! l iss 

-8« SB'S 



^ o 



IN t~ O Ttl <N ^ CO -* ■* l£ CO 00 CO -t< O 

fNa>iNcot^«55eOi-i-^<o25-*Ti<co «© 

-*.-JCMrH tH rH rH <N 05 



5£J 



The theory of free trade between nations is as fallacious, 
impracticable, and utterly absurd as is that of free love be- 
tween families.— Hon. B. P. Jones. 

Abating none of our interest in the borne market, let us 
move out to new fields steadily and Increase the sale for our 
products In foreign markets.— President McKinlcy to Com- 
mercial Club, Cincinnati, Oct. 30, 1SJ)7. 



Instead of making a panic, the national policy of ending 
the lawlessness of corporations in Interstate commerce, and 
of taking away their power of Issuing, without supervision. 
stocks and bonds, will produce a change in their manage- 
ment and remove one fruitful cause for loss of public con- 
fidence.— -Hon. Wm. H. Taft, to Merchants and Manufacturer* 
Association, Boston, Mass. 



STATISTICAL STATEMENTS. 



33S33 



l~- o — — r- -n 



-s-O'-'r^i— © r^. CM *1 



n m iow in n 



oo oo co ao 



iin»NrtNoos«(» 



5JR 



OlON'it^OinO 1 



sssgsassssgs $s 



O r-l i-l (M CO <M (>5 rH rH CM i 



OO»»'J0*'0'*Wffl<0« «»W^M»NM(ON?N 
(NMIOMWMN COCg^rfi rH 00 r3 rH 00 CO CM © rH 






8 O O O © © < 
© o © o o o < 
© © c5 © © © 3 < 



18888: 



IS r^ © © X w -? 3 >M i^ to io wow 

r-^ it -3 -i co -i- — i>i^ co eo -«< is is © © 

NHWaNHHnlOHNM CO © 30 

oo eg-^t •*"-*" eo in © eg cg"o"t- 



Nooaoato^ipoo 

. WNHKSN'OUJXM 



«3 



r£r£ 



-* ifl> ir~ CO -»K -* CO co-*»»«©W»«iSCOrH«OU»«OCO 



CO CO CO N ■* eg ■* " 



co eg m -* e«s eg eo «o eg co 



3* 

eg us 

i' 



oo© ©< 

8888S 



o©< 

38? 



8888: 



iTiHawosMHi 

.OW3JNNOIMM' 



MNOOOOlflBOtOnoO rH 1^- 
OO^OONNNNON © is 



iClWOl © CO 



NMNHMMcaN^MW is r^ t^ eg eg oc 

©rHO0g-''iS©©-H<©©lS OONOMNlfifflHCClMOH C0I 

© so i-i © m eg © -* © oo i-nr~ © <k -* © oo rH co< 



■©©I 

©o < 

o©< 



X to JxJ © 

i|Sg; 



8§ss; 



+ 1. 1 +J- 



8888 

o©©o 



-* do ©io ' 



+ l* J I + + 



+ 1 II 



&3 



§ § liliis'iiiii i§S88SiilS88i Ss" 



lea rH 00 IT) SO t^ 30 rH 

| 33 t- © © © © eg © 



SrH Cffl OO IS © © I— -rH 

rHffi-*t^cgcg ©o 
i r- as ift -* © oo is oo© 






cg©cg©co-*<-orHcoo<}Tti inog-j©©oo-*©og©iSrH5g co oo 

CO OS rH rH t- IS -* ■* CM ®H ©IS 



8888 £88: 

O © © © O © © ' 



10 is oo MiflWHOsNOooOM -m co is © co © eg eg J _, 

c3a> r- Soo©OTco©iSf^©©co oiscoiS'Coeg-*<5orHoo^oo& «o > 



i © © *- © 

:§.£ §2 



i eg rn eg rH -tm 






+ + I 



iiii 



©© ©< 

o© ©< 
©o © < 



£: 



icg©-# -rn-*»ij*-.oo©co©is©eg©o< 

i © -rti IS 
' CO 00 CO 



NOOowamO'NOOOi oo ' 

I © CO l- |i N N O lO H p >* CO I 

lCO"'*"*rHC0©©r--rHtftrH H 



I eg CO t» NH00VflMlONC0©r-p{>Ol 

i ■* o4 oiHNt* eg r-- co eg eg co oo 

rH -*H rH rH 53 



+ 1 + 



1+ I I+1++ 



+ + 



;888888 



!a $ 



rHCgiVCOlS©rH© 

HiC/j'MMOCSffl 



00 -H CO© ©CO 



eg r^ oo' 

0-1 © -- ! 

oo eg rH i 



© is co eg i 



I S r- os 



S8! 



IS 



oo b- r- us oo 

rH CO l-» IS CO ! 



*3 



CO© i 
© J> ' 

oo ■ 



t^ co © © eg 



<b rH 6o eg eg © r- rH ■* eg 



3 •-> 

ft.2 

Ph 



>©©©©< 

',8888; 



■ © © < 
S3< 



88^ 

©© : 



co -* eg is is is oo 

' o oo co rH eg ci 



!3J2gg^8: 



© © rf co t^ 



3© 1 : 

CC IS C 

co is ( 



i CO © CO rH rH 



i — eg 
"cois" 



is eg 
eg 

CO I 
-*• JO 



eg co 
co co ifl 



coco©co©o rH©©' 
M o :-• N 5 H O i^ C 
CO © ■* CO © t— CS rH C3 i 
r-Z IS* is" rH OS O0 © l^ CO 1 



© .;- . O IK _ w 

-# i ~ © © CO IS O 00 1-h 

CO©CISi—00C0t~CC© 



onnw*coohh egis 

H-HOr-NHCOONH 
HHt- HNOHi-i 



*1 

o 9 



08 3 

rH P 

u 



>M'% sj« 



exS" 



S B « •* „, 



<t!M-?"S 03 05^ CSCdOr-jC-, 



■ « 



■§.s 

C3^ 



a rS S « S3 
arises s - 3 Sssjgs 

08,2 o o o ■= a -s 5 c"3 a 
-bS^^hPhP^ccoqoqD p 



STATISTICAL STATEMENTS. 



523 



si » 


a 


-* ^ 


p, 


© -^ 


% 


» °» 


m 


"S ;< 


qg 


11 


+j 







to ^ 


3 


*8 





•>•* 


a 


© © 


■a 


«0 to 


■- 


£ «r 


1 


3 


c 


*» 


a 


Si 


2 


Q 




to 




r*» 




O 




9 




« 












5 




,»^ 




e 




s 




»j 




to 




* 





Ills 



— , 33 - ■ CO 00 

u~ v; -. — ..: noodlSL- - - ; - — — 
so - ; c-i — .— ■ - - 






i<o«ir:'.oi-nH eo ~i : - oc X) 



^ 9 =o *ps 

V toe » "2 © 



25 S 



03 g 5 T 



>>>-< 2cc 



^c 



fsfil) 05 
&, 0) bfi_2 



aoO'iioaMOWM-'Moin'/iK so 

WOHO^-fHH^r in is :s os ~> :■: h 
JO)inNM*i.N'MOHOMOOCiM!MtH 

H t-i M — ' kfl MlOCO 00*00 © i-l 00 cf£- i-T r-T-rX 

rt i-i :-) h r>i in t~- co co — i _j o so "/) i^ co o o 

CcJ CO 03 GO CO O t>< 00C3J CO N -" irt N tO X 7) ■* 
5 o" t> co" -ti t>T io co" o" tp © 651H t-* V o" co' 00" 



•O 3:]Hr.5rj-X1^5 un r- © o 
35 - ' CO o -* ■* CO CM '-O -r © cm CM ,-H CO 



. .. O O H 10 '/I lO in o H 

Blo-mc)--3-si>n -.0 L-i ri c»5 o-i# co 30 -« co -* 
' - :co t-i urs co in so -.3 co c 1 Ti © i-< -*> <n © 



tfi CM 30 ' ■ 

-.0 a - 



I- " ~ 
co oi ■*■ 



CO CM 1-- 1 

i ■«* 1/0 trt 1 



II 



-O co c5 55 vj 00 -»■ --I >Q r — Reg -* 00 1 

5 w -* ■« o o co 80 5* -ti ■* o n a ' 
*o 00 go cm o'c-f >~ 0^-1* :-*o i 



Qwo4aNWf.3'.a3)Qna''«w-.i co 



C"JS»t-005pW^-H^CO JHNtSOWHH 

-^ co ^ — » -- ] in . - -" ~ ^' ?;i t^- co t^ uo ■** 

H«HftC>iaOlOC:iaO»iONNNI>« 
Op-T-35C3COOO-+'CO<M 






00 00 -^ CO ; 



CWNOinrjOOlO-O- -r-'O-M— iHOQNCCi 
ir> — ? - _ gj : - -- jq ■; -- jg ;;, K 3Q 
00 CO CO CO CO C*3 CO -C CO co :-. CO CO CO CO -* 1 



00 C) W (M M ^ X u" O ^ 00 in n * Ol O O 
O -r I--. T-i uo t-( 00 lO "* ~ 
lOlOONJIHI 



53 : 



r~ u~ in t- CO -r X> 
^ :- <5 o co -f ice 1 
o so t^. 00 1-1 oai^ i 



s o ic lc o> c: n 

SNv^h y. CM 
X SO CM CO -r X -K 

-p co — * ;-i 10 10 Co. 



X X CO S3 — I fM -* CD Q 0<! CO -n CO -5* CM lO in 

QC!lCON<00 7;XC10!NHO>OHH 
"OtOOCCCC-JC-Cil-NN - 



[Mil 



I I 
1 : 

I I 

l4(M CO ~¥ 



I I I 
I I I 

! I 1 



i ! 



. -+uocor^criCoO- < 'Oco-*i 
co co sv si co cro co so o cc c — o 
oocooooooo cooooo so— SO CO CO 



! ! 



C3.Q 



cj rt o 



gl 3 
H 

.2 2 

§9 



>a 



Total actual expenditures and per capita expenditures of the 
principal countries of the world, in the latest year for which 
figures are available. 



Countries. 



Argentina 

Australian Commonwealth . 

Belgium 

Canada i 

Ouba _ 

France 

Germany 

Italy 

Japan 

Netherlands 

Portugal 

Russia 

Spain 

Sweden 

United Kingdom 

United States 



Population. 



5,678,000 
4,048,000 
7,161,000 
6,440,000 
1,573,000 
89,300,000 
80.478,000 
33,601,000 
47,975,000 
5,592,000 
5,162,000 
141,000,000 
18,618,000 
5,261,000 

.43,221,000 

85,817,000 



Expenditure. 



$98, 

164 ; 

109. 

54, 

18, 
715 
522, 
367, 
246 

74; 

63 

1,650. 

1«5 

51 
673, 
578, 



380,000 
971,000 
367,000 
061,000 
99S.000 
420,000 
445,000 
215,000 
363,000 
760,000 
096,000 
448,000 
(575.000 
826,000 
164,000 
904,000 



Per capita 
jxpenditure. 



S17.33 
40.75 
15.27 

8.39 
12.03 
18.20 

8.64 
13.11 

5.14 
13.37 
12.22 
11.71 

8.90 

9.85 
15.69 

6.75 



Not open mints for the unlimited coinage of the silver ot 
the world, but open mills for the fall nmi unrestricted labor 
of the American workinjarmeii. — Ma.i. Mckinley's letter of ac- 
ceptance. 

The panic was doubtless chiefly due to the exhaustion 
of the free capital of the world by reason of the over- 
investment in enterprises that liave not been* as productive 
hs expected. The enormous industrial expansion has at 
last tied up nearly all the world's capital which was avail- 
able and new investments had to bait. This result was 
world-wide. — Hon. Wm. 11. Tuft, at Kanvui City, Mo. 



524 



STATISTICAL STATEMENTS. 



© » 

^ "5 

e *£ 

is -o * 

» S 5) 

h ^ e 

S »* 






H 



^ 5 

I §1 

!S .£ ©. 

U 5S^ 

• ££ 



4> © ° ^ 
D S S c 

2, £s§ 

© 

05 



£ fl 5, 

fcff 



§8 S SKSSSSSSSgJSg 



to 32 co -k Ci o> » ^n ■ 



OOOOC-lOOO 



©.« 



iH 36 r-J — . 06 oo ^- ' oo eo -* »~ c» < 



II 



'NMr 



t-- i-t t- CN 3D ■"* 00 



O <M -• IT- C^ 30 1^ <© Lf? © 



C-3 «-l <M — r-l i 



a) fl a 



■ » 



OJ r1N(6CCMlN30N!0'* 

co ifeio ift 



<0 IQ C5 30 to -. ? 1 X :o O =» IC to 

Sco -* -f to o th -fas csTcToT to 
->x ■*< ^mtoooaiOHNMMM 



tO<Mi»t'^cirr»o 
ow-Piooieir* 
lona urvr-Tco -c co r- 



tor^t--ift>irco(MC^coo3co 

SooaaM-^'M-s'aMi 

toi^r^joaxH iff -* i-- © 
<n © iS^o * oo -i- U S§S 
t4 « co TfTip ^ u~ inrJid-J 



asniftMaipirr — i<nitmh 
«Di«<©'r5i-u~a)cO'-''MtDoc*5-" 

HHNMOOOSOOlTNr MO 

og io. ifl op gj -<* -^"im i-T © — ■" cc* oo cS* 
00 io oo oo r~ 4o « -* o: ir if? ir> cc © 



00 O0< 



oo cc < 



C oj 

tie 



c « 

S3 +J 
O 



eo * 
■"* O 



la 

> p 



a . 

a I 

fl 

.sl« 

as>: 

.9'S n 

2 if- 

2 o ra © 

a « « fl 
^oH§ 



« o 

"5 a 

C3 CO 

O , 
fl « 
§ bj 
ft 2 



fl t, 

c ccq 



aiS ■ . ^ 
S^^'H - 

_ £ P S "C 
" o t-i « ^ 
c3 J; <y *a . ej 
CJ3X5 ©*-> P. 
O :;■£ > O 

CO «P*H g 

a 



Not open mints for the unlimited coinage of the silver of 
the world, but open mills for the full and unrestricted labor 
of the American workingmen. — Maj. McKinley's letter of ac- 
ceptance. 

You cannot help the farmer by cwiniug more silver; he can 
only be helped by more consumers for his products. — Maj. 
McKinley to delegation of farmers, August 24, 189$. 

Vigorous action and measures to stamp out existing 
abuses and effect reform are necessary to vindicate society 
as at present constituted. Otherwise, we must yield to 
those who seek to introduce a new order of things on a 
socialistic basis.— Hon. Wm. II. Taft, at Kansas City, Mo. 

Any unjust discrimination in the terms upon which trans- 
portation of freight or passengers is afforded an individual 
or a locality paralyzes and withers the business of the in- 
dividual or the locality exactly as the binding of the ar- 
teries and veins leading to a member of the human body 
destroys its life.— Hon. Win. H. Taft, at Columbus, Ohio. 

Only twice In all that remarkable history of 48 years 
have we lost the confidence of the people of the United 
States to the point of their turning over the government 
to a Democratic executive. I venture to say that neither 
in this nor in any other country can be disclosed such a 
remarkable record of arduous deeds done as in that history 
of a half a century of the Republican party.— Hon. Wm. H. 
Taft, at Kansas City. Me. 



STATISTICAL STATEMENTS. 



5*5 



Party divisions in Congress since the formation of the Republi- 
can Party in 1856. 



Congress. 


Years. 




Senate. 


Ind. 


House. 


Dem. 

39 
38 
10 
9 
11 
11 
11 
17 
20 
29 
39 
44 
38 
36 
34 
37 
37 
39 
44 
39 
34 
26 
29 
32 
32 
29 


Rep. 

20 
26 
31 
36 
41 
42 
58 
57 
47 
43 
36 
32 
37 
e40 
42 
39 
39 
47 
38 
42 
46 
53 
56 
58 
58 
61 


Dem. 

131 

101 

42 

75 

40 

49 

. 78 

103 

92 

168 

151 

148 

138 

198 

204 

168 

159 

236 

220 

104 

il3l 

163 

153 

174 

136 

16, 


Rep. 

92 
113 

106 
102 
L45 
143 
151 
138 
194 
107 
142 
129 
146 
124 
120 
153 
1G6 
83 
126 
246 
206 
185 
198 
206 
250 
222 


Ind. 


35 

38. 


1857-1859 
1859-1861 
81861-1863 
a!863-1865 
1865-1867 
1867-1869 
1869-1871 
1871-1873 
1873-1875 
1875-1877 
1877-1879 
1879-1881 
1881-1883 
1883-1885 
1885-1887 
1887-1889 
1889-1891 
1891-1893 
1893-1895 
1895-1897 
1897-1899 
1899-1901 
1901-1903 
1903-1905 
1905-1907 
1907-1909 


1 
5 
2 
2 
5 

bf" 

D2 

bl 

f3 
f5 

hlO j 
111 | 
n.3 ! 

i 

1 
j 


14 
23 


37 


28 


38 


9 


39 




40 




41 




42 __._ 

43 _. 


D5 
14 


44 

45 




46__ 


cl6 


47 


clO 


48 _. 


cl 


49 


cl 


50 

51. _ 


4 


r i2. 


f8 


53 _ 

54 

5-1 

ML _ 

57 

58 _. 


f8 

f7 
J 15 

k9 
m> 

o2 


59 




60 









Parties as constituted at the beginning of each Congress are given. Thes« 
figures were liable to change by contests for seats, etc. 

a During the Civil War most of the Southern States were unrepresented In 
Congress. 

b Liberal Republicans, e Greeub ackers. d David Davis, Independent, of 
Illinois. 

e Two Virginia Senators were Readiusters, and voted with the Republicans. 

f People's party, except that in the House of Representatives of the Fifty- 
fourth Congress one member is classed as Silver party. 

g Three Senate seats were vacant (and continued so) and two Representative 
seats were unfilled (Rhode Island had not yet effected a choice) when the session 
began. Rhode Island subsequently elected two Republicans. 

h Five Populists, two Silver party, three Independents, i Including fifteen 
members classed as Fusionists. J Including three members classed as Silver 
party. There was one vacancy. 

k Six Populists, three Silver party. 

1 Five Populists, one Silver party, two Independents, and three vacancies. 

m Three Populists, one Silver party, one Fusion party, one vacancy. 

n One. Populist, one Silver party, one Fusionist, two vacancies. 

o Two Union Labor and two vacancies— one Democratic, one Republican. 



Yon cannot get consumers through the mint*: you set 
i (hem through the factories. — Maj. McKinley to delegation of 
farmers. Aug. '24, 1896. 

! 

Resnscitation wili not be prompted by recrimination. The 
distrust of the present will not be relieved by a <llstrn«t of 
the future. A patriot makes a better citizen than a. pessi- 
mist. — President McKinley before Manufacturers' Club, Phila- 



delphia. June 2, 1807. 



Nothing should ever tempt us — nothing ever will tempt us 
—to settle down the sacred debt of the nation through a legal 
technicality. — President McKinley before National Associa- 
1 tion of Manufacturers, New York, .Ian. 27. 1808. 

The administration of exact justice by court* without 
fear or favor, unmoved by the iniluence of tlie ucnHhy or 
by the threats of the demagogue, is tlic hifxhrst ideal that 
a government of the people *-m« strive for, and any n«MI 
by which a suitor, however unpopular or poor, is deprived 
of enjoying this is to be condemned. — lion. Wm. II. Taft, at 
Columbus, Ohio. 



A railroad company engraged in lnter*rnte commerce 
should not be permitted to l»sae stork or bonds and pat 
them ou sale in the market except after a certificate by 
the Interstate commerce comm ; >ston that thr securities are 
Issued with the approval of the commission for a legiti- 
mate railroad purpose— Hon. \* m. II. Taft, at Colnmbus, 
Ohio. 



526 



STATISTICAL 'STATEMENTS. 

t 
The Electoral College in 1908. 



States. 



Alabama 
Arkansas . . . 
California . . 
Colorado ... 
Connecticut . 
Delaware . . . 

Florida 

Georgia .... 

Idaho 

Illinoia 

Indiana * . . . . 

Iowa 

Kansas 

Kentucky . . . 
Louisiana ... 

Maine 

Maryland 
Massachusetts 
Michigan 
Minnesota . . . 
Mississippi . . 
Missouri .... 
Montana 
Nebraska . . . 
Nevada 



l'JOS 



States. 



New Hampshire 
New Jersey . . , 
New York 
North Carolina 
North Dakota . . 

Ohio , 

Oklahoma 

Oregon 

Pennsylvania . , 
Rhode Island . , 
South Carolina 
South Dakota 
Tennessee 

Texas 

Utah . . 

Vermont 

Virginia 

Washington . . 
West Virginia 
Wisconsin .... 
Wyoming .... 



Total 

Necessary to a choice 



1908 



4 

12 

39 

12 

4 

23 

7 

4 

34 

4 

9 

4 

12 

18 

3 

4 

12 

5 

7 

13 

3 

483- 
242 



Presidential vote and political record by States, 18&k to 1904- 



Yotea, 1904. 



Party receiving electoral vote in— 



64 '68 '72 '76 '80 '84 



.Alabama H 

Arkansas 9 

California 10 

Colorado ,— 5 

Connecticut 7 

Delaware 3 

Florida 5 

Georgia 13 

Idaho 3 

Illinois 27 

Indiana _ 15 

Iowa 13 

Kansas 10 

Kentucky 13 

Louisiana 9 

Maine 6 

Maryland 8 

Massachusetts --16 

Michigan 14 

Minnesota 11 

Mississippi 10 

Missouri 18 

Montana u 3 

Nebraska 8 

Nevada 3 

New Hampshire 4 

New Jersey 12 

New York 39 

North Carolina 12 

North Dakota 4 

Ohio 23 

Oregon 4 

Pennsylvania 34 

Rhode Island. — 4 

South Carolina 9 

South Dakota 4 

Tennessee — 12 

Texas 18 

Utah 3 

Vermont 4 

Virginia 12 

Washington 5 

West Virginia 7 

Wisconsin -13 

Wyoming 3 



D 
D 

tD« 
R 
R 
D 
D 
D 

R 
R 
R 
K 
D 
D 
R 
D 
R 
R 
R 
D 
D 

R 
D 
R 
D 
R 
D 

R 
R 
R 
R 
D 

D 

D 

R 

D 



R R 
D D 



'96 1900 



'04 



*No vote, j! 

tOne electoral vote given to opposing party. 
JFive electoral votes given to opposing party. 



STATISTICAL STATEMENTS. 



527 



oot^exjcooocoift©^^^©-*^©©©?^©©^^^^^©^^^^^ 



CO i-': : 
rH tH 



|0Q CO :::MHhnco^h 

rH © CO CO i-H rH 



| . 1 .-. ;;. 






feox'5 



;N ir> c? ■ - 

•* « O O J! c; :■: 



;a NS 



13 oo r-. eo « 

tv-r r^ rH 



881 



jpCioooaHciMH 

Kliesssisa 



© c 
CO rH 

,8S 



© so ■«• to • 



!NK«S'*'*l 



CV? <M 00 1-4 rH 



IPOH 

*»a." 



© OO 00 CO '5^1! 

r- 3o H© 5 op ; 

MOi-*C. '- 3S < 

rH CO 50 CO -r CO ■ 

|A ■ M *A .-*\ ~r, . 






!Sfc 



&<>" 6o< 



yowoa 



! c/5 f- «N t K< 

! 1*5 «0 N. f- © ' 

MflOOMKr. 



Ifl l- M 



© i/> ro © 
-r-© MS 
3-. O © CO 






<0 rH O < 
CO 00 CO ' 



O H - 
ICO f) 



CO O H t «5 v) •' 
CO MlftHi,~, 
r-( CO CO 



£§S>3£g 



CO rH Ol © < 

eomM 

i- r- CO 



© us ao ■ 

i lO CO uo 



;s^©s 

en co ©« 



!££© 

. r-~oo _~ 



-t* »£> 0» -* © © 
CO 00 CO co — tfC 



in to m 

t- (9 cc 



gSSSagsSS; 



sa^ss 



JoCOrHt^rHCOCOOOiJ 



o al oo >o -3 co r- © co to l- <to co rH a5 -to' in oo © .~ © 



-»<C-4 rH r- -r-i ( 



co i_o •"> co © «*>* oo «8 



.-. i-r -i 
CM C: CO 



£3a55S5S8S« 

O rHr3 



38i 






SliSi! 



ij< CO • 



O C0--r SO . 
© © CO 01 i 

COr-tc4r-l( 



I kACO i 

>- co 4j ) 



©"—- CO 
co f- CO 



cooomeo ©< 



3$.$$: 



:8gS 



M I- A 1 v» 

> i> co a 'jo 



OONNi 



LO © rH CO t- 51 : 
00 06 3 CO I-- © < 



! 22S3oS £33§S?J§i 



!a*Ba : £! 



_r- 100 



rH JO -- - 

co Jo © cc co ■ 

i~t rH CO 30 



§2; 



COMCOI^t-^OOCC CO O. -H-^ta 
IC'SooS^Mii-SujOCioSN 



SON^: 



io©-icco©itot--i-t! 

i:*?©;?:-'©?^©,©; 



r-i o> © co c: i-~ co : 



MJJHHHI 



:§c5?3; 



O CO CO « ire © LO -,© 00 
©rHCOOCOCOOCcO© 



S5i-ir~>?eo©>jcerHt^i 



35 ■» I CO © CO -rrl t3 © 

^fcir; ir-rH 55 J0t^«O 

© — i r- SO co co co © t- N so «a ■* * i co ir © en t-^ •>*< ( 

■ ■* CO H B iH fa ".< N O M « i-O H a l-*©«>Kft<N©- 

CN HHrlHWHIN I rH © rH •»)< 



IflOOft 
3S « 



© CO -H © 
CC CO CO© 
t- © © CO 



© 05 -Nl 
© © » 
© ■* t- 

(— CO © 



§g2: 

n w > o "m h if j co » j> ?• 



ss^^i^issi^iiis^^Si 



t~ © CO •# rH © ■ 
r^ t> SO y< Vn CO i 






00 © ■* • 

Isls 



© CO rH J^ rH OS in 



8^fi 



:g^ 



^^S5J 



CO CO i- CO 
^41 t>- OS lO 

© i~» "Wi rH 

rH CO CO o» 



— uo -si 
rH CO t- 
■* 1— I © 



S^ScSOD^SHClQr^CO 8-OJ 
i«co©r«.iftc>l'H-*fi5eM 

33 a " s "8fllS'S"l 



Ort»rt«H!t( 1 r. rt*!air»ft 

©^<0©r-©©40©t-i-i(MeNCO©ift 



hi«N 



Si^^e 



«JI8SJ.S3888J.8S3J.8P.Si^^^^ 

cMc»c«3i>cNi©©2scsj^mift©«o'«ic> 

CN CO rH CO -r iS © © rH © CO rH CO *9 © 
i-l cN r-i © rH ^ IQ 



§ © ©s 

■♦CO 1-4 ■* 



y-t CN COiH rH CO 



t-irtO>>ir© I 40 1* 55 r$ f 

fcfcr^Ssi ISh2?S2SK?9 

Httt-H« I -T © V} © — < 

_H f?< ICQ _i Z4 r-i CO 



8 3 

CO © 



ift CO ^ I 



g' 



S§3 



SSI§ 



SB 



a 

-«<©-hicoci} io«i*ooc)ie 

M lft N H !d I M» Ifl a n -n M 

T-t Cq ICr) rH rH CO rH CO 



■* ->ji co tm i ia 3< rji <e ^> 

fi 00 t^ CS 1t>©COCO0O 



■* CO 

co* ■/ 



V) "■ -: '■ ~-A "0 
-h e>] i- co coj> 

Of? t-* irT rr" ©* -hT 



asssa ici^ins: 



:sgg; 



s^s; 



CO to i 



a i 






3SS28 is-staaw 

ssgri?? fjoS 

^H C? I CO 1-4 



o © 



I co © © ift ( 



58 



© f~ cc :•> CO LT) 

S- -«r co © o5 



85 

£5 



ssss lasssasaa 

a ass !S32saga*| 



oo co -f ir h co 
ire © r- SB IA tN 



S?: 



a*5^j 



CO rh 



S3 



iis3 igissasss 



CM 1ft -^ ■*• 

cS ioSco 



aa©rH lay 

I CO 70 



3°°:3; 



oo c* -w kc 



i iiiiii 



! 1^ 

m 'S ' 



I I I I ! I 



t : t 



I I 

i • ■ 

■If 



I ! I i I 



" re 



o 5 



■gel 
1843 



5^ gS 



» fc K * J2J OO fc « cc Eh d E5 fS {S fS 



WILLIAM HOWARD TAFT 



In William Howard Taft the Republican National Convention 
has nominated for the Presidency a man exceptionally equipped, 
not only by nature and training, but by experience and achieve- 
ment, to perform the delicate and arduous duties of the greatest 
office in the gift of any people. For nearly thirty years he has 
given himself with single-minded devotion to the public service. 
He has displayed throughout a broad grasp of affairs, a literally 
dauntless courage, an unshakable integrity, a quick and all em- 
bracing sympathy, a deep and abiding sense of justice, a mar- 
velous insight into human nature, a sure and unwavering judg- 
ment, executive ability of the highest order, and a limitless 
capacity for hard work. In all the years of its history the 
Republican party has never selected as its leader in a National 
Campaign a man so tried beforehand, and so amply proved equal 
to the task. 

A Family «f Jwvliti. 

Mr. Taft comes of a family distinguished in the law and the 
public service. The first American Tafts came of the English 
yeomanry, transplanted across the Atlantic by the great upheaval 
for conscience's sake which peopled New England with its sturdy 
stock. In this country they turned to the study and practice 
of the law. Peter Taft was both a maker and an interpreter of 
laws, having served as a member of the Vermont legislature, 
and afterwards as a judge. Alphonso Taft, son of Peter, was 
graduated from Yale College, and then went out to the Western 
Reserve to practice law. He settled in Cincinnati, and it was at 
Mt. Auburn, a surburb of that city, on September 15, 1857, that 
.his son, William Howard Taft, first became a presidential pos- 
sibility. 

The boy grew up in an atmosphere of earnest regard for 
public duty too little known in these days of the colossal and en- 
grossing material development of the country. His father earned 
distinction in the service of city and state and nation, going 
from the Superior bench, to which he had been elected unanimous- 
ly, to the place in Grant's cabinet now held by the son, then, 
as Attorne3 r General, to the Department of Justice, and finally 
into the diplomatic service, as minister first to Austria and then 
to Russia. His mother, who was Miss Louise M. Torrey, also came 
of that staunch New England stock with whom conscience is the 
arbiter of action and duty performed the goal' of service. 

His Mother's Influence. 

It was her express command that sent him away from her 
last fall when both knew that she was entering upon the last 
stage of her life He had promised the Filipinos that he would 
go to Manila and in person formally open their Assembly. It 
was to be their first concrete experience in self-government, and 
he, more than any other man, had made it possible. If he should 
not keep his promise there was danger that the suspicious Fili- 
pinos would impute his failure to sinister motives, to indifference 
or altered purpose, with result vastly unfortunate to them and 
to us. Mr. Taft saw all that very clearly, yet in view of his 
mother's health he would have remained at home. But she for- 
bade. She said his duty lay to the people he had started on the 
path to liberty, and although it involved what each thought to 
be the final parting she commanded him to go. He went and be- 
fore he could return his mother had passed away. 

Much was to be expected of a boy of such parentage, and 
young Taft fulfilled the expectation. He beirran by growing big 
physically. He has a tremendous frame. The cartoonists hive 
vnade a false presentment of him familiar to the country by draw 

528 



WILLIAM HOWARD TAFT. 58& 

ing him always as a mountain of flesh. But if they had gone to 
the same extreme of leanness, and still honestly protrayed his 
frame they would have represented a man above the average 
weight. 

At College. 

Of course he went to Yale. His father had been the first 
alumnus elected to the corporation, and when young Taft had 
completed his preparatory course at the public schools of Cin- 
cinnati he went to New Haven for his college training. He was 
a big, rollicking, good natured boy, who liked play but still got 
fun out of work. He did enough in atheletics to keep his 225 
pounds of muscle in good condition, but gave most of his time 
to his studies. Wh»n the class of '78 was graduated Taft was 
its salutatorian. having finished second among 120. He was 
also elected class orator by the class. He was then not quite 21. 

He went back to Cincinnati and began the study of law in his 
father's office, at the same time doing- court reporting for the 
newspaper owned by hi* half-brother, Charles P. Taft. His 
salary at first was $6 a week. He did his work so well, however, 
that Murat Halstead. editor of the Cincinnati Commercial 
Gazette, employed him to work for that paper, at the increased 
salary of $25 a week. 

While he was doing this he was keeping up his studies, taking 
the course at the Cincinnati Law School, from which he was 
graduated in 1880 dividing first honors with another student, 
and being admitted to the bar soon afterward. 

His Respeet* t© a Blackmailer. 

That fall there occurred one of the most celebrated and char- 
j acteristic incidents in his life. A man named Rose was then 
{ running a blackmailing paper in Cincinnati. He had the reputa- 
tion of being a dangerous man. He had been a prize fighter, 
and was usually accompanied by a gang of roughs ready to 
assault any whom he wanted punished. Alphonso Taft had been 
the unsuccessful candidate for governor at that election, and 
Rose's paper slanderously assailed him. For once young Taft for- 
got his judicial temperament and legal training, and instead of 
setting the law on the blackmailer he marched down to his office 
and gave Rose a terrific thrashing. 

Rose quit Cincinnati that night and his paper never appeared 
again, \oung Taft had had his first spectacular fight, and it was 
in behalf of somebody else. 

It is not the purpose of this sketch to attempt a detailed 
biography of Mr. Taft. It merely seeks by a discussion of a few T 
of the more important events of his life to show what manner of 
man he is. They reveal him as a student of application and 
ability; a man with an abiding sense of justice, slow to wrath, 
but terrible in anger; courayeous, aggressively honest and 
straightforward; readier to take up another's cause than his 
own. This is a foundation on which experience may build very 
largely, and that is what it has done for Taft. 

The Call te rubllc Office. 

He was hardly out of his boyhood when he was called to 
public office, and in most of the years since then he has devoted 
himself to the public service. First he was assistant prosecuting 
attorney of Hamilton County, under Miller Outcalt. now one 
of the leading lawyers of Ohio. Tn 1881 he became collector of 
internal revenue for the first Ohio district, and demonstrated 
the same ability in business that he had shown in the law. A 
year later he resigned that, office and went back to the practice 
of law, with his father's old partner. II. P. Lloyd. Tn 1884 he 
beenme the junior counsel of a Bar Committee to constitute 
testament proceedings against Campbell, whose methods of 
practicing law had brought on the hearing of the Hamilton 
County Court house in Cincinnati. Though technically unsuc- 
cessful, Mr. Taft made a good reputation from his conduct of 
this matter and Campbell was drawn from Cincinnati J In 1885 
he became assistant county solicitor. Two year later Governor 



5W WILLIAM HOWARD TAFT. 

Foraker appointed him Judge of the Superior Court, to sucoeed 
Judson Harmon who had resigned to enter President Cleveland's 
cabinet. 

In 1886 Judge Taft married Miss Helen Herron, daughter of 
Hon. John W. Herron, of Cincinnati. They have three children, 
Robert Alphonso, a student at Yale, Helen, a student at Bryn 
Mawr, and Charles Phelps, 2d, who attends the public schools in 
Washington. 

Hia Judicial Career Begun. 

His appointment as Judge of the Superior Court was the 
beginning of the judicial career which was Taft's ambition, and 
for which he was so eminently fitted. He made such a record 
as a judge that at the close of his appointed term he was tri- 
umphantly elected for another term. But already he had at- 
tracted attention outside his state, and he had served but two 
years of the five years for which he had been elected when 
President Harrison asked him to take the difficult post of Solic- 
itor General of the United States. This was an office of the ut- 
most importance, involving not only wide learning and tremendous 
application,, but the power of clear and forceful presentation of 
argument. Two of the cases which he conducted as solicitor 
general involved questions of vital importance to the entire coun- 
try. The first grew out of the seal fisheries controversy with 
Great Britain. Mr. Taft won against such eminent counsel as 
Joseph H. Choate who is widely recognized as a leader of the 
American bar. The other was a tariff case in whleh the law was 
attacked on the ground that Speaker Reed had counted a quorum 
when the bill passed the House. That, too, he won. It was dur- 
ing his term as solicitor general that Mr. Taft met Theodore 
Roosevelt, then civil service commissioner, and began the friend- 
ship which has continued and grown ever since and which has 
had such far-reaching influence upon the lives of both men. 

On. t&e Federal Bench. 

Mr. Taft's record as solicitor general so clearly proved his 
fitness for the bench that affer three years in Washington he 
was sent back to Ohio as judge of the Sixth Federal Circuit, a 

gost generally recognized as a preliminary step to the Supreme 
ourt, which was then the goal of his ambition. 
It was during his seven years on the federal bench that Mr. 
Taft'i qualities as a judge became known throughout the country. 
He was called upon then to decide some of the most important 
cases that have ever been tried in the federal courts, in the 
conduct of which he established an enviable reputation for learn- 
ing, courage and fairness — three essestial attributes of a great 
jurist. His power of application and his ability to turn off 
enormous masses of work received ample demonstration during 
this time. It was in this period of his service that he rendered 
the labor decisions which have made him famous as an upright 
and fearless judge. In his treatment of both labor and capital 
he showed that here was a judge who knew no distinction of 
parties when they appeared as, litigants before him. He voiced 
the law as he knew it and the right as he saw it, no matter 
where the blow fell or whom it struck. If sometimes the de- 
cisions went against what organized labor at that time believed 
to be its cause, it must not be forgotten that no clearer or 
broader statement of the true rights of labor has even been made 
than in some of his judicial utterances. Lawyers conducting 
litigation in other courts on behalf of labor unions have often 
cited these decisions of Judge Taft in support of their conten- 
tions. Neither should it be forgotten that one of the most im- 
portant and far reaching of all his judgments was that against 
the Addystone Pipe Company, in which for the first time the 
Sherman anti-trust law was made a living, vital force for the 
curbing and punishment of monopoly. When this case reached 
the Supreme Court, Mr. Taft received the distinguished and un- 
usual honor of having his decision quoted in full and handed 
down as part of the opinions of the high court which sustained 
him at every point. 



WILLIAM HOWARD TAFT. 831 

Pioneering: the Roosevelt Policy. 

This Addystone Pipe deoision marked the beginning of the 
struggle for federal control of interstate corporations which 
in the later years has come to be known as the "Roosevelt policy." 
Mr. Taft in an address to the American Bar Association at De- 
troit, in the summer of 1895, had enunciated the principle on 
which President Roosevelt has made his great fight for the sup- 
pression of monopoly and the abolition of special privilege. Thus 
Mr. Taft pioneered the way for the "Roosevelt policy." 

Biasing; the Philippine Trail. 

Since the settlement of the reconstruction question no more 
delicate or fateful problem has confronted American statesman- 
ship than that of the Philippines. The sudden pitching of over- 
sea territory into our possession as a result of the war with 
Spain, created a situation not only unexpected but entirely with- 
out precedent. There was no guide for our statesmen. The path 
had to be hewed out new from the beginning. There was no 
crystallization of opinion among the American people as to what 
should be done with the Philippines. A considerable element 
was vigorously opposed to retaining them, but the vast majority 
demanded the maintenance of American sovereignty there. 
Among these, at first, the desire was undoubtedly due to the 
glamour of aggrandizement. The possibility of wealth some- 
where beyond the skyline always catches the imagination, and 
there can be no question that the great mass of the people moved, 
without serious thought of the consequences, toward American 
exploitation of the islands. 

But even at that early day there were a few — a very few — 
among the leaders of American thought and action, who saw 
clearly the responsibility thrust upon the country by the ad- 
ventitious possession of the Philippines, and determined to meet 
it fully, no matter what clamor of opposition might arise. Among 
these President McKinley was one. Mr. Taft was another. Mr. 
Taft had been opposed to taking the islands. He was opposed 
to retaining them. More than all he opposed their exploitation 
for American benefit. He believed that the Philippines belonged 
to the Filipinos, and should be developed in the interest of their 
own people. 

Shonlderingr the "White Man's Burden." 

He saw the possibility of lifting a feeble, ignorant people 
into the light of liberty and setting them upon the path to intelli- 
gent, efficient self-government. That possibility reconciled him 
to the continuance of American authority over the islands, for 
none saw more clearly than he the chaos certain to result from 
immediate independence for the Filipinos, with its inevitable and 
speedy end in complete and hopeless subjection to some other 
power. Therefore when President McKinley asked him to go 
to Manila and undertake the difficult and thankless task of start- 
ing the Filipinos upon their true course, he sacrificed the judicial 
career which was his life's ambition and shouldered the "White 
Man's Burden." It was in March, 1900, that he received his ap- 
pointment as chairman of the Philippine Commission. 

Not many Americans have ever comprehended thoroughly the 
size of Mr. Taft's undertaking, or the full meaning of his achieve- 
ment. Through a bungle in our first dealings with Aguinaldo 
and the Filipinos the entire native population of the islands had 
come to believe, with some reason, that the Americans were 
their enemies and had betrayed them. Mr. Taft arrived in 
Manila to find a people subdued by force of arms, but unanimous- 
ly hostile, sullen and suspicious. They were still struggling, 
with the bitterness of despair, against the power in which they 
all saw only the hand of the oppressor. 

Overcoming; the Barrier Between East an* West. 

Moreover, their leaders had been inoculated with the belief 
that between west and east there is an impassible barrier which 
will always prevent the Occidental from understanding and sym- 
pathizing with the Oriental. The experience of generations had 



SIS WILLIAM HOWARD TAFT. 

confirmed them in that belief. The only government in their 
knowledge was tyranny. The only education in their history was 
deceit. The only tradition they possessed was hatred of oppres- 
sion, made concrete for them by their experience with western 
domination. 

That was what Mr. Taft had to face, and in three years he 
had overcome and changed it all. He did it by the persuasive 
power of the most winning personality the Filipinos had ever 
known. He met them on their own level. He lived with them, 
ate with them, drank with them, danced with them, and he showed 
them that here was an Occidental who could read and sympathize 
with the Oriental heart. He gave them a new conception of 
justice, and they saw with amazement that it was even-handed, 
respecting neither person nor condition, a great leveler, equaliz- 
ing all before the law. They saw Mr. Taft understanding them 
better than they had understood themselves, comprehending their 
problems more wisely than their own leaders had done, and stand- 
ing all the time like a rock solidly for their interests. They 
saw him opposed by almost all his countrymen in their islands, 
denounced and assailed with the utmost vehemence and venom 
by Americans simply because he steadfastly resisted American 
exploitation and persisted in his declaration that the Philippines 
should be for the Filipinos. They saw him laboring day and 
night in their behalf and facing death itself with cheerful resig- 
nation in order to carry on their cause. Tt was a revelation 
to them. It was something beyond their previous ken. outside 
of all their experience, their education and their tradition. It 
convinced them. 

A Revelation to the Filipinos. 

Mr. Taft gave them concrete examples of disinterestedness 
and good faith, which they could not fail to comprehend. He gave 
them schools and the opportunity of education, one of the dearest 
wishes of the whole peonle. No man who was not in the Philip 
pines in the early days of theAmerican occupation will ever 
understand thoroughly with what pitiful eagerness the Filipino 
people desired to learn. Men, women and children, white haired 
grandfathers and grandmothers craved above everything the 
opportunity to go to school and receive instruction in the simplest 
rudiments. It is difficult to tell how deeply that eager desire 
touched Mr. Taft and how earnestly he responded to it. 

But education was onty a beginning. Mr. Taft gave the Fili- 
pinos the opportunity to own their own homes. Tt was another 
concrete example of simple justice. When they saw him negotiat- 
ing for the friar lands, securing for the Filipinos the right to 
buy those lands on easy terms, it went home to the dullest among 
them that he was working unselfishly in their behalf. 

And they saw his justice in their courts. For the first time 
in all their experience the poorest and humblest Filipino found 
himself able to secure an even-handed honest decision, without 
purchase and without influence. 

Even that was not all. They saw Mr. Taft literally and faith- 
fully keeping his promise and calling Filipinos to share in their 
own government, not merely in the subordinate and lowly places 
which they had been able to purchase from their old masters, 
but in the highest and most responsible posts. They saw men 
of their race called to membership in the commission, in the 
supreme court, and in all the other branches of their govern- 
ment. And they believed the promise of even wider experince 
of self-government to come. 

An Unparalleled Achievement. 

It was a practical demonstration of honesty and good faith 
such as the Philippines had never known. It was a showing of 
sympathy, justice and comprehension which could not be resisted. 
Conviction followed it inevitably. The whole people knew — be- 
cause they saw — that the Philippines were to be maintained for 
the Filipinos, and they recogmized their own unfitness for the 
full responsibilities of independent self-government, and cheer- 
ful] v set themselves to the task of preparation. 

That is the achievement of Mr. Taft in the Philippines. It 



WILLIAM HOWARD TAFT. 533 

has scarcely a parallel in history. What it cost him he paid 
without question or complaint. He had given up his judicial 
career when he went to Manila. But three times in the course 
of his service for the Filipinos the opportunity to re-enter it 
came to him, each time with an offer of a place on the supreme 
court which had been his life-long goal. Each time he refused it. 
Not even President Roosevelt understood the call to Mr. Taft 
from the Filipinos, and when he offered a supreme court justice- 
ship to Mr. Taft he accompanied it with almost a command. But 
Mr. Taft declined. He saw clearly his duty lay to the people 
whom he had led to believe in him as the personification of Amer- 
ican justice and good faith, and he made the President see it too. 
How the Filipinos felt was shown when on hearing of the danger 
that Mr. Taft might be called away from Manila, they flocked 
in thousands about his residence and begged him not to go. When 
ultimately he did leave the islands it was only to come home 
as Secretary of War, in which office he could continue his direc- 
tion of Philippine affairs and make sure that there should be 
no deviation from the successful line of policy he had marked out. 

The Birth of a Natiom. 
What is the result? The birth of a nation. The great, power- 
ful American people, through the compelling agency of Mr. Taft, 
has paused ever so slightly in its triumphant onward march, to 
stoop down and lift up a feeble, ignorant and helpless people 
and set it on the broad highway to libei'ty. Vaguely, uncer- 
tainly, not comprehending clearly just what it was doing, not 
understanding always fully either the object or the means of 
accomplishment, but its heart right, and submitting confidently 
to the leadership of a man in whom it trusted implicitly, this 
nation has assisted in a new birth of freedom for a lowly and 
oppressed people. To William Howard Taft belongs the. lion's 
share of the credit. Not often is it given to one man to do such 
work for humanity. Seldom is such altruism as his displayed. 
Many other honors have come to him ; many others will yet 
come. Among them all none will be of greater significance or 
of more lasting value than his work for the Filipinos. 

Secretary of War. 

It is not important here to discuss in detail Mr. Taft's adminis- 
tration of the War Department since he succeeded Elihu Root 
as Secretary of War on February 1, 1904. He has been at the 
head of it during the years of its greatest range of activity. 
He is not merely Secretary of the Army, as almost all his pre- 
decessors were. He is Secretary of the Colonies. Under his 
direction are matters of the utmost importance affecting every 
one of the over-sea possessions of the United States. The affairs 
of the army alone have often proved sufficient to occupy the 
whole attention of an able secretary. Mr. Taft has had to 
handle not only those and the Philippine and Cuban business, 
but to direct the construction of the Panama Canal as well. 
And at not infrequent intervals he has been called on to par- 
ticipate in the direction of other weighty affairs of government. 
He has been the general adviser of President Roosevelt and has 
been called into consultation on every important matter which 
has required governmental action. 

The administration of canal affairs has required in a high 
degree that quality described as executive ability. The building' 
of a canal is a tremendous enterprise, calling constantly for the 
exercise of sound business judgment. In it Mr. Taft has dis- 
played in ripened proportions the abilities he foreshadowed when 
solicitor general and collector of internal revenue. 

Buildiuar the Canal. 

When Mr. Taft became Secretary of War this country had just 
taken possession of the canal zone, under treaty with the republic 
of Panama, and of the old canal property, including the Panama 
railroad, by purchase from the French company. The work was 
all to do. The country expected the dirt to fly at once. The 
newspapers and periodicals were full of cartoons representing 
Uncle Sam in long boots with a spade on his shoulder, striding 
down to the isthmus to begin digging. But before there could 



534 WILLIAM HOWARD TAFT. 

be any real excavation there was a tremendous task to meet. 
First of all the isthmus must be changed from a disease breed- 
ing pest-hole to a place where Americans could live and work 
in safety. The canal zone must be cleaned up, mosquitoes 
stamped out and the place made sweet and healthy. Habi- 
tations must be constructed for many thousands of workmen 
and their families. The cities of Panama and Colon, at the 
terminal of the canal, must be made thoroughly sanitary and 
supplied with water and sewers. An organization for the work 
of canal construction must be perfected and millions of dol- 
lars worth of machinery and supplies must be purchased and 
transported to the isthmus. 

All these things, however, were of a purely business char- 
acter. It required only time and ability to handle them prop- 
erly. But there was another matter to be taken care of before 
these could be undertaken, and it was of a decidedly different 
nature. The Hay-Varilla treaty with Panama had secured to 
the United States all the rights necessary for complete control 
of the canal zone, and it became of the utmost importance to 
insure the maintenance of friendly relations with the people 
of the isthmus republic. It would certainly greatly increase 
the ordinary difficulties of building the canal if our people had 
to encounter the hostilities of the Panamanians. 

Here was a problem largely similar to that met by Mr. 
Taf t in the Philippines, and calling for the exercise of the same 
qualities of tact, sympathy, justice and patience which he had 
exhibited in the Far East. 

It became his task to convince the Panamanian people and 
government that the United States had not. gone to the isthmus 
to build a rival state instead of a canal. As head of the War 
Department, and the superior of the Canal Commission, he has 
conducted all the affairs of this Government with the Republic 
of Panama since the ratification of the original treaty, and has 
succeeded in keeping our relations with the isthmus uniformly 
pleasant. Always, at least once a year, he has made a trip to 
the canal zone and examined affairs there with his own eyes. 
He has just returned from the isthmus, the President having 
sent him there to settle a number of questions which required 
his personal consideration on the ground. Perhaps some con- 
ception of his responsibilities on the isthmus may be had from 
the fact that -since the actual work of canal building began there 
has been spent on it upward of $80,000,000, and every dollar 
of that expenditure required and received his approval. 

Real Self- Government for Cuba. 

Aside from the Philippines and the Canal the greatest call 
that has been made upon Mr. Taft since he became Secretary 
of War came from Cuba. This was a case largely similar to 
the Philippine problem. The American people have so long 
imbibed the theory and practice of self-government with their 
mothers' milk that they have developed a tendency to believe 
any people fitted for it who desire it. To us liberty is self- 
government, but to many a people with neither experience nor 
tradition of anything but practical autocracy self-government 
is only license. So it was with the Cubans. When our inter- 
vention had freed that island from the Spanish yoke we deemed 
it sufficient insurance of successful government for the Cubans 
to require them to adopt a constitution before we turned the 
island over to them. We ignored the fact that Cuba had no 
experience of constitutions or understanding of their functions. 
So when Cuba had conformed to our requirement we sailed 
away from Havana and left her to work out her own salvation 
unaided and untaught. 

The result of that folly was inevitable and not long de- 
layed. The Cubans having adopted a constitution they had not 
the slightest idea of what to do with it. They proceeded to 
govern under the only system of which they had any knowledge. 
The proclamation of the President took the place of the old 
royal decree. He created by his fiat the departments of gov- 
ernment which should have been established by law of Congress 
under authority of the Constitution. Freedom, in the American 
sense w*» unknown in Cuba. 






WILLIAM HOWARD TATT. 



Order Out of Chaos. 



The experiment was aimed toward chaos and its expec- 
tation was quickly realized. In September, 1906, the United 
States had to intervene again, and the task fell on Mr. Taft. 
Fortunate it was both for the United States and Cuba that it 
was so. With his experience of the Filipino as a guide and 
the magnetism of his personality as a lever, Mr. Taft placated 
the warring factions and secured peaceable intervention. Then 
he devised and set up a provisional government which all the 
Cubans accepted. 

It was the intention then to maintain the government only 
long enough to give the Cubans a fair election at which they 
might select their own government by full and free expression 
of their own will. But almost immediately the provisional 
government discovered the fundamental mistake made by the 
earlier American administration. It found that the Cubans had 
been attempting to administer a government which never had 
been organized and existed only by virtue of the President's 
will. Patiently the provisional government set to work, under 
the direction of Mr. Taft, to provide the organization under 
the fundamental law which the Cubans had never known was 
the essential of successful self-government. The work is now 
nearing completion, and when next the Americans quit Havana 
it will be after turning over to the Cubans a government ma- 
chine properly established and fully equipped, whose operation 
they have been taught to understand and control. Thus, to 
two peoples has Mr. Taft been called upon to give instruction 
in practical self-government. 

The character of Mr. Taft is the resultant of strongly con- 
trasting forces. He is a man who laughs and fights. From his 
boyhood, good nature and good humor have been the traits which 
always received notice first. But all the time he has been 
capable of a splendid wrath, which now and then has blazed 
out, under righteous provocation, to the utter consternation 
and undoing of its object. Because he is always ready to 
laugh, and has a great roar of enjoyment to signify his ap- 
preciation of the humorous, men who nave not observed him 
closely have often failed to understand that he is just as ready 
to fight, with energy and determination, for any cause that 
has won his support. But it is almost always some other man's 
cause which enlists him. His battles have been in other interests 
than his own. First of all he is an altruist, and then a fighter. 

A Combative Altruist. 

This combative altruism is Mr. Taft's most distinguished 
characteristic. As Secretary of War he has earned the world- 
wide sobriquet of "Secretary of Peace." He has fought some 
hard battles, but they were with bloodless weapons, and the 
results were victories for peace. The greater the degree of 
altruism the keener was his zeal, the harder and more persistent 
his battle. The greatest struggle of his career, in which he 
disregarded utterly his settled ambition, and cheerfully faced 
a continuing serious menace to life itself, was on behalf of 
the weakest and most helpless object in whose cause he was 
ever enlisted — the Filipino people. That was the purest and 
loftiest altruism. 

But although this is the dominant trait of Mr. Taft. he is 
well known for other qualities. His judicial temperment. founded 
upon a deep-seated, comprehensive and ever alert sense of right 
and wrong; his courage, proved by repeated and strenuous 
tests; his calm, imperturbable judgment, and his all embracing 
sympathy are characteristics that have been often and widely 
noted. ''They are his by right of inheritance from generations 
of broad-minded, upright men and women. The development 
of his country has extended the range of his opportunity and 
given greater scope to his activities than was enjoyed by Al- 
phonso Taft, his father, or Peter Rawson Taft, his grandfather, 
but in character and intellect he is their true descendent. 

The American people know Mi-. Taft as a man of pervasive 
good humor, always ready with a hearty laugh, and quick to see 
fun in any situation. His other side has not often appeared. 



A8« WILLIAM HOWARD TAFT. 

but he is capable of tremendous wrath. Nothing arouses it 
more quickly than unfaithfulness to a trust or an exhibition 
oi deceit. Injustice in any form stirs him to the bottom in« 
stantly. BJe has a broad, keen, quick, all-embracing sympathy, 
always ready to respond to any call. His sense of justice is 
wonderfully quick-springing and alert. And he has a genuine 
fondness for work, which enables him to derive real pleasure 
from his task. These qualifications are the endowment of an 
unusually gifted man. The people know, because they have seen, 
his ability to turn off an enormous amount of work. They have 
seen him prove an exceptional executive ability. They have seen 
him manifest an equipment for the Presidency such as no 
other man has shown before his election to that office. In ex- 
perience, training and ability, Mr. Taft has amply proved hia 
fitness for the chief magistracy of the nation. 



Our country is growing better, mot worse.— Hon. C. W. 
Fairbanks, at Baldwin, Kas., Jane 7, 1001. 

No men living are more worthy to be trusted tban those 
who toil up from poverty; none less inclined to take or 
touch aught which they have not honestly earned. — Lincoln. 

Whenever called upon, the negro has never failed to 
make sacrifices for this, the only country he has, and the 
only Mag he loves.— Hon. Win. H Taft, at Plymouth Church, 
Brooklyn. 

I am opposed to free trade because it degrades American 
labor; I am opposed to free silver because it degrades Ameri- 
can money.- Maj. Wm. McKinley to Homestead workingnien, 
Sept. 12, 1896. 

This is an era of great combination both of labor and of 
capital. In many Trays these combinations have worked for 
good; but they must work under the law.— President Roose- 
velt at Charleston, April 0, 1902. 

I -would favor a provision allowing the defendant in con- 
tempt proceedings to challenge the judge issuing the in- 
junction, and to call for the designation of another judge 
to hear the issue. — Hon. "Wm. H. Taft, at Cooper Union, New 
York City; 

The American test should be the test of integrity, loyalty, 
and incorruptible devotion, -whether in the discharge oi 
public or private business. — Address of Secretary Cortelyou, 
at the annual banquet of the Auburn Business Men's Associa- 
tion, Auburn, N. Y., Wednesday, April 22, 1908. 

Our political campaigns must be conducted upon the high 
plane of principle, in which the fullest discussion of policies 
shall be encouraged, but in which misrepresentation and 
abuse shall have no part.— Postmaster-General Cortelyou, 
at the annual banquet of the Lincoln Republican Club, 
Grand Rapids, Mich., Feb. 12, 1906. 

I do not know any place which thrills one's bosom with 
patriotic ecstasy as the sepulchre of the unknown dead in 
Arlington Cemetery. The thought of the heroism and sacri- 
fice of those who, -without a mui*mur and without even 
hope of personal credit or glory, gave up all to maintain 
a sacred cause, makes all motives of personal advancement 
of ambition seem small and sordid.— Hon. Wm. H. Taft, at 
Riverside Park, New York. 

We must approach every public question with a deter- 
mination to be fair and just in its discussion. Reforms to be 
practical must be reasonable. They mnst begin among the 
people whose safeguard is the ballot, through -which every 
offender can be ultimately reached.— Extract from address 
of Postmaster-General Cortelyou on Lincoln's Influence on 
American Life. 

Taking the work of the Army and civil authorities to- 
gether, it may be questioned whether anywhere else in mod- 
ern times the world has seen a better example of real con- 
struetive statesmanship than our people have given in the 
Philippine Islands.— President Roosevelt's annual message, 
second session, Fifty-seventh Congress. ^ 

Anything that makes capital idle, or which reduces or 
destroys it, must reduce both wages and the opportunity 
to earn wages. It only requires the effects of a panic through 
which we are passing, or through which we passed in 
1893 to 1873, to show how closely united in a common in- 
terest we all are in modern society. We are in the same 
boat, and financial and business storms which affect one 
are certain to affect all others.— Hon. Win. H. Taft, at Cooper 
Union, New York City. 



ELIHU ROOT'S APPRECIATION OF 
JAMES S. SHERMAN. 



Hon. Elihu Root, Secretary of State, delivered the foIlow= 
ing estimate of Hon. James S. Sherman, the Vice= 
Presidential candidate, at the notification ceremonies 
at Utica, N. Y„ on August 18. 



"This occasion justifies general congratulation. The 
people of the Herkimer-Oneida district are to be congrat- 
ulated on the confirmation of the judgment they have so 
long maintained in the selection of their representative in 
Congress. 

"Kepublican national conventions have always been 
very wise bodies and the last convention's imitation of you 
in nominating Mr. Sherman, is the sincerest flattery. Mr. 
Sherman should be congratulated upon this signal expres- 
sion of opinion and feeling by the people of his home. 
There are few things in. this world worth so much as the 
respect, esteem and affection of the community in which one 
has passed his life. Money cannot buy this; scheming can- 
not produce it, artifice cannot simulate it. 

"It answers to no call but that of character. It ii 
natural reaction of kindly human nature under the influence 
of what the man really is. 

"The country is to be congratulated upon this evidence 
that one of the men. for whom it will have an opportunity 
to vote 'at the coming election for the office of Vice-Presi- 
dent, to preside over the Senate and to stand in the place of 
heir apparent to the Presidency, is a good and true man, in 
whose hands the vast interests of American prosperity and 
peace and order and liberty will not suffer. 

"There can be no better evidence of a candidate's worth 
than the esteem in which he is held at home. "What political 
partisans and political enemies say abort a man is apt 
to be colored by their partisanship or their enmity. The 
praise and depreciation of a campaign is a poor guide to 
just opinion. What the newspapers say about a man often 
reflects but a superficial judgment based upon those oc- 
casional striking and spectacular acts which constitute news 
rather than upon the inconspicuous, steady and most useful 
labor and conduct that make up the true record ofltiife. 
The members of the national government for the past 20 
years know what Mr. Sherman has done in the broad field 
of national legislation. They know with what modest dis- 
regard for personal display, thorough knowledge, clearnesa 
of expression and force of mind and character he has main- 
tained upon the floor of the House, his views of what wai 
best in legislation, until the time has come when every 
member listens with attention and reapect, because it if he 



536-2 ROOTS APPRECIATION OF J. 8. SHERMAN. 

who speaks. They know that rare combination of quick 
perception, fair judgment and decision of character which, 
through long experience as chairman in committee of the 
whole, has made him the best parliamentarian of the House 
of Eepresentatives, and a member of the standing committee 
of five which directs the difficult and complicated admin- 
istration of the rules necessary to enable the Hou§e to do 
its business, and of necessity which in a great measure di- 
rects the conduct of business. But we know our friend and 
neighbor better than the men at Washington, better than 
the newspapers, better than the politicians. We know the 
man himself through and through by his living — by the 
multitude of little things that in the long course of years 
make up a record that cannot be untrue. We know the stock 
he came from — sound and honest stock. We know his re- 
spected father. Some of us go back to knowledge of his 
grandfather. My own recollections of earliest childhood are 
of a farmhouse in the town of Vernon and a stone's throw 
away the simple house of his grandfather, Willet Sherman, 
an honored and conspicuous figure, remaining from the early 
settlers of the county — a leader in the first manufacturers 
of central New York. We have followed the grandson 
through his boyhood and manhood. We know that he has 
been a good- husband and a good father and a good neighbor ; 
that he has always been upright in business, self-respect- 
ing, just, fair and considerate; that everybody in the com- 
munity trusts him and believes his word without any bond, 
We know that no desire to make money ever led him to do 
a mean or unfair or unkind act, and that he never sought 
to grow richer by making anyone else poorer.^ We know 
that he is a true and loyal friend and that from all this 
region the weak and unfortunate have learned to go to 
him, always to find help in his sympathy. We know that 
he has always borne his part as a good citizen in the public 
affairs of the community and that he is universally respected 
and beloved. 

"We are competent to testify, not upon hearsay, but of 
knowledge, and we do now testify to our countrymen every- 
where — to the people of all distant States, that this is a 
man for Americans to be proud of, to respect, to honor and 
to love. 

"We certify to all that great electorate that when their 
votes in November shall have chosen James Schoolcraft Sher- 
man to be Vice-President of the United States, the Senate 
will be sure of a presiding officer in character and com- 
petency worthy of the best traditions of that great delibera- 
tive body, and that if. which God forbid, the sa<l contin- 
gency were to come which should for a fourth time call a 
Vice-President from New York to the executive office, the 
interests of the country, and of the whole country, would i 
be safe in good hands; and the great office of the Presidency 
would suffer no decadence from the high standard of dignitv 
and honor and competency of which we are so justly proud." 



JAMES SCHOOLCRAFT SHERMAN 
REPUBLICAN NOMINEE FOR VICE-PRESIDENT 



James Schoolcraft Sherman, the Republican nominee for 
Vice-President, was born October 25, 1855, in the same ward of 
the City of Utica in which he now lives. The house Mr. Sher- 
man now occupies is only a half a dozen squares from ine house 
where he was born. 

Mr. Sherman can trace his ancestry back to Sir Henry Sher- 
man, of Dedham, England, in the sixteenth century, and the 
male succession comes down through Henry, Samuel, ±nilip, 
Benjamin, Jonathan first, Jonathan second, Eobert, Willett H., 
and Richard U. 

Richard U. Sherman's mother was Catharine Schoolcraft, a 
daughter of Lawrence Schoolcraft, a Revolutionary soldier and 
friend of the Indians of the Mohawk Valley. The candidate 
was named for his grandmother's brother, James Schoolcraft. 

Richard U. Sherman, the Congressman's father, was born in 
Vernon, Oneida County, New York, and was by profession an 
editor, although a large portion of his life was spent in public 
service. He was Major-General of the State Militia, an alderman 
of Utica, a member of the Board of Supervisors, Chairman of 
the Board for a half a dozen years, Clerk of the New York State 
Assembly, three times a member of the Assembly, author 
of the Manual which is still in use in the Assembly, 
and was a member of the Constitutional Convention of the 
State in 1867. He was for fifteen years President of the 
Fish, Forest and Game Commission, and very much interested 
in the preservation of the Adirondacks. He was Tally Clerk of 
the House of Representatives from 1860 to 1870, and in 1872 was 
the Liberal Republican candidate for member of Congress. 

After retiring from active business, Richard U. Sherman ac- 
cepted the office of President of the village of New Hartford, 
and also occupied the position of Justice of the Peace, and in 
the discharge of his duties as such spent most of his time 
in bringing about amicable settlements of neighborhood die- 
putes. 

Congressman Sherman's mother was Mary F. Sherman, a ladj 
of most beautiful character, whose activities outside of her 
family cares were devoted to charitable and Christian work. 
She was a woman of fine mind, whose influenoe was felt net 
alone by her family, but by all with whom she came in contact. 
The memory of her acts of charity and kindness and the pleasant 
words and unbounded hospitality is treasured by all who came 
within her circle. 

Up to the time of his marrige, Richard U., the father, had 
spelled his name with an "a," (Shearman). At the time of hie 
marriage the "a" was dropped. The relationship between the 
two was remote. 

When James S. Sherman was two years old his father moved, 
with his family, to a farm two miles south ef the village W 

IMa 



New S&rtteC Here they lived until 1161. la tfee fall of 1868, 
Mr. Sheraaaa's parents purchased a bouse in the Tillage of New 
Hartford, where they continued to live until the death of Mr. 
Shermaa's mother in 1896, his father having died the year pre- 

rku«. 

Mr. Sherman lived with his parents until 1881, when he was 
married at East Orange, N. J., to Carrie Babcock, taking up his 
residence in the Seventh Ward of the City of Utica, two blocks 
from where he now resides. 

While Mr. Sherman lived on his father's farm he attended 
the district school, half a mile from home, and, when old enough 
to do so, he assisted in doing such work on the farm as a boy 
of his years would be capable of doing. After removing to the 
village of New Hartford he attended the public school in that 
town, and later attended the Utica Academy, which was four 
miles distant from his home, connected by a street car service. 
Later he attended the Whitestown Seminary, a preparatory school 
situated in the village of Whitesboro, four miles distant. This 
was a co-educational institution, with a very large atteiMance. 
From this school, young Sherman entered Hamilton College in 
the fall of 1874, and was graduated in 1878. In school and 
college he was distinguished for general goodfellowship rather 
than scholarship. He gained a considerable reputation as a 
declaimer in both school and college, carrying off the first honors 
in declamation at the end of his Freshman year. He also en- 
joyed a. reputation as a debator, and was one of six chosen 
from his class at the conclusion of his Senior year to contest 
for prizes. 

After leaving college Mr. Sherman began, at once, the study 
of law in the office of Beardsley, Cooldnham and Burdick, at 
Utica, N. Y. He was admitted to practice two years later, and 
at once formed a partnership with Hon. H. J. Cooldnham, his 
brother-in-law, and former Mayor John G. Gibson. He con- 
tinued the practice of law in partnership with Mr. Cookinham, 
with various changes in' the personnel of the firm, until Jan- 
uary 1, 1907, when he withdrew as a member of the law firm. 1 . 
In his law practice his work partook more of an office business! 
than an advocate. v 

In i.899, with other Utica business men, he organized the 
Utica Trust and Deposit Company, now one of the leading baiiks 
of Central New York and was chosen as its President, which 
position he has since occupied. The New . Hartford Canning 
Company was organized in 1881 by his father and another gentle- 
man, and after his father's death he became president of the 
company. He is also interested, in various ways, in many other 
local enterprises. 

Mr. Sherman's first active work in politics was the year suc- 
ceeding his graduation from college, when he spoke a few times 
in different parts of the county in advocacy of the election of 
Alonzo B. Cornell, Kepublican candidate for Governor, making 
his first speech in the town of his residence. During the last 
fifteen years ,Mr. Sherman has campaigned in various parts 
of the State, having spoken in most of the important cities, 
and in a great many minor places, as well as in half a dozen 
or more other States. During various campaigns he has spoken 
in substantially every town in Oneida and Herkimer counties. 
He was chosen Mayor of Utica in 1884. The city was then, as 
now, normally Democratic, but he was elected by a substantial 



JAM)SS SCHOOLCRAFT BHBRMATT. 586c 

Republican majority. At the end of his term, which was' for 
one year, he declined a unanimous renomination. 

He was first named for Congress in 1886, the contest for the 
nomination being quite a spirited one, there being half' a dozen 
candidates, his chief competitor being- the Hon. Henry J. Cbgges- 
hall, then State Senator from that district. 

Mr. Sherman was renominated each succeeding two 
acclamation until 1896, when there was a contest for the no Lai- 
nation, his competitors being Hon. Seth G. Seacock, of Her^ 
now State Senator, and John I. Sayles of Rome, Oneida Ob 
Since that time he has been nominated by acclamation each suc- 
ceeding two years until the present time. He presided ovsr the 
State convention in 1895 as temporary chairman, and over ihe 
State conventions of 1900 and 1908 as permanent chairman. Re 
was secretary of the Oneida County Eepubllean Committee 'a 
1882, and for the three follewing years was chairman of 
committee. He was a delegate to the Republican Kational Con- 
vention in 1892. 

In 1898 Mr. Sherman was appointed by President McKinley 
a member of the Board of General Appraisers of the City of 
New York, and the nomination was confirmed by the Senate. 
It was his desire, at the time, to accept the appointment, but 
political and business friends at home, including the Chamber 
of Commerce and the Republican County Committee, passed 
resolutions and appointed a committee to wait upon him and 
urge him not to retire as a member of Congress, and, im con- 
formity with the desires cf his constituents, he declined the 
appointment. 

Two years later he was tendered, by the Steering Commitee 
of the Senate, the position of Secretary of the U. S. Senate. 
Realizing that the wishes of his constituents had not changed 
within the two years, he declined this position. 

Mr. Sherman was the orator on the occasion of the laying of 
the coruer-stone of the building presented to the Oneida His- 
torical Society of Utica. He was also the orator on the pre- 
sentation of the Butler Memorial Home by the laie Morgan 
Butler to the town of Hartford. The Indian School of River- 
side, Cal., was, at the request of the people of .Riverside, named 
by the then Commissioner of Indian Affairs, Sherman Institute, 
in his honor. 

Mr. Sherman, early in his congressional career, became a 
prominent member of the House, and during the last lew terms 
of Congress has been numbered among the leaders. His par- 
liamentary ability was early recognized, and, perhaps, no other 
member has so frequently been called to the chair to preside 
over the Committee of the Whole. He was one of the closest 
friends of Speaker Reed, as he was of Speaker Henderson, and 
has been, and is, of Speaker Cannon. 

Mr. Sherman was a candidate for the speakership when 
Thomas B. Reed retired. For twelve years he has been Q) 
man of the Committee on Indian Affairs, and his work, at the 
head of that Committee, has received unstinted praise from all 
concerned in the work of the Committee, without regard to 
party. He is, at present, also a member of the Committee on 
Rules and of Interstate and Foreign Commerce. 

Had Mr. Sherman remained a member of the '.ere 

is no doubt whatever that he would have been elected Speaker 
at the conclusion of Mr. Cannon's incumbenoy of that o" 



5M4 JAMB* SCHOOLCRAFT BEERMATf. 

Mr. Sherman, besides being prominently connected with many 
business institutions of his city and elsewhere, is a member 
of many social and fraternal organizations. He is a member 
of the Fort Schuyler Club of Utica, and the Sadaquada and 
Yahnandasis Golf Clubs. Of the Yahnandasis Club he ham been 
Governor for seven or eight years, and was its President for 
two years. He is a member of the Arcanum Club of Utica, 
and a member of the Eoyal Arcanum and the Order of Elks. 
He is also a member of the Union League Club, Transportation 
Club and the Eepubllcan Club of the City of New York, and the 
Columbia Golf Club of Washington. He is a trustee of Hamilton 
College, which gave him the degree of LL. D. in 1905, and 
President of the Washington Alumni Association of that college. 
In college he was a member of the Sigma Phi Society, the 
second oldest college society in America, of which society Sec- 
retary of State Eoot and the late Senator Ingalls of Kansas, 
and many other prominent men have been members. 

Mr. Sherman has been a regular attendant at the Dutch E«- 
form Church in Utica since his marriage in 1881. Prior to that 
time he had been attending the Presbyterian Church at New 
Hartford. For five years just passed he has been treasurer 
of his church, and for three years, Chairman of the Board of 
Trustees. 

Mr. Sherman has three sons : Sherrill, aged twenty-five, who 
is note teller in the Utica Trust & Deposit Co. ; Eichard U., aged 
twenty-three, who is acting professor of mathamatics at Ham- 
ilton College, and Thomas M., aged twenty-two, who is sec- 
retary of the Smyth-Despart Co., dealers in mill supplies, at 
Utica. Sherrill and Thomas are married, and each has a 
daughter, both of whom are idols of their grandparents, in 
whose company they spend as much time as possible. 

Mr. Sherman's home life is an ideal one. A part of the house 
in which he lives is over a century old, and full of many relics — 
not only of historical interest in Oneida County, but gathered 
from all parts of the United States — particularly Indian relics, 
in which subject Mr. Sherman has, for a long time, teen deeply 
interested because of his Chairmanship of the Committee on 
Indian Affairs of the House of Eepresentatives. With ample 
lawn and garden 'plots, Mrs. Sherman's desire to cultivate every 
possible blossom and flower is carried out to the full, and during 
the spring, summer and fall, nearly every room in tne house 
has its vase of freshly cut flowers from the yard and garden. 

Living, as he does, in the vicinity in which he has made his 
home since birth, and with his splendid record and high attain- 
ments, it is no wonder that James S. Sherman is looked upon 
as the first citizen of, not only Utica, but of the surround- 
ing counties. At his home-coming following his nomination, 
the city saw its largest celebration in its history, and this 
means much in the city or county that has held such men as 
Eoscoe Conkling, Francis Kernan and Horatio Seymour. The 
welcome was absolutely non-partisan in character ; in fact, it 
seems as if the Democrats were bound to outdo their Eepub- 
lican neighbors in showing their appreciation of the honor that 
had come to their city. 

To one visiting Utica at the present time and giving his 
impression in a single sentence, it would be : "How Utica doea 
love Jim Sherman, and how Jim Sherman loves Utica." 



ADDRESS OF HON. JAMES S SHERMAN 

In Response to Notification Speech at Utica, N. Y., August 

IS, 1908. 



Senator Burrows and Gentlemen of the Notification Committee : 

Your chairman, speaking for the committee, has notified me 
of my nomination by the Republican National Convention, held 
in Chicago in June, as the party's candidate for Vice-President. 
As 1 chanced to be in Chicago in June, I had an inkling of the 
convention's action, which was confirmed by a warm-hearted 
reception tendered me by my neighbors on the occasion of my 
home-coming on July 2. 

In Accord With Mr. Taft. 

This official notification, however, is welcome and the nomina- 
tion you tender me is accepted; accepted with a gratitude com- 
mensurate with the great honor conferred ; accepted with a full 
appreciation of the obligations which accompany that honor, 
an honor greater because my name is linked with that of William 
If. Taft, whom I respect and esteem highly and who approaches 
the high office of President exceptionally well equipped to dis- 
charge the duties and bear the varied and weighty responsi- 
bilities of that exalted position. My acceptance could not be 
made with honor unless I were in full accord with the declara- 
tion of principles adopted by the convention. Not only am I 
in full and complete accord with my party's platform, but I 
endorse every word of the statement made by Mr. Taft in his 
address of acceptance when notified of his nomination as the 
Republican candidate for President. 

That speech fully and comprehensively discussess the issues of 
this campaign as presented by the platforms of the two great 
parties, so that it is appropriate that my statement should be 
short. Those not convinced by the presentation of Mr. Taft I 
could not hope to persuade. It is. however, in conformity with 
custom that I refer at least briefly to some of the important 
issues of the campaign. 

A Discussion of the Tariff Issue. 

First, then, let me say that I am a protectionist. I am suffi- 
ciently practical to value the utility of a fact higher than the 
beauty of a theory, and I am a protectionist because experience 
has demonstrated that the application of that principle has 
lifted us as a nation to a plane of prosperity above that occupied 
by any other people. 

I especially commend that plan of our platform which prom- 
ises an early revision of tariff schedules. That pledge will be 
fulfilled in an adjustment based in every particular upon the 
broad princiDles of protection for all American interests ; alike 
for labor, for capital, for producers and consumers. The Dingley 
Hill, when enacted, was well adapted to the then existing condi- 
tions. The developments of industrial prosperity in a decade, 
which in volume and degree have surpassed our most roseate 
expectations, have so altered conditions that in certain del ails 
of schedules they no longer in every particular mete out justice 
to all. In this readjustment the principle of protection must and 
will govern; such duties must and will be imposed as will equal- 
ize the cost of production at home and abroad and insure a rea- 
sonable profit to all American interests. The Republican idea 
of such a profit embraces not alone the manufacturer, not alone 
the capital invested, but all engaged in American production, 
the employer and employed, the artisan, the farmer, the miner 
and those engaged in transportation and trade : broadly speak- 
ing, those engaged in every pursuit and calling which our tariff 
directly or indirectly affects. During a statutory application of 

537 



681 ADDRESS OF HON. JAMES S. SHERMAN. 

this principle, prosperity has bided with us. When a revenue 
tariff has been the law, adversity and want have been our portion. 
Our Democratic brethren, whose memories are as short as their 
promises are frail, and who have always exhibited a lack of 
capacity to profit by experience, unmindful of the distress and 
destruction that arrived and departed with the last Democratic 
administration, declare in their platform that they favor such 
•immediate revision of * * * schedules as may be necessary 
to restore the tariff to a revenue basis." A "revenue basis," a 
"tariff for revenue only," "ultimate free trade" — all have an 
identical meaning ; that meaning- being- an assault upon American 
industries, an attack upon the American wage scale, a lessening- 
demand for the products of American soil and American toil ; 
less work, less pay, less of tp.e necessaries and comforts of life. 
In the light of history, what issue of the campaign so vitally 
affects American citizens? Experience, that effective teacher — 
effective save with the one-man power now parading under the 
title of the Democratic party — has taught the nation a valuable 
lesson and the result of the coming November ejection will once 
more prove the American people to be apt scholars. What the 
laborer of the land, skilled and unskilled, desires is the oppor- 
tunity at all times to exchange his brain and brawn for good pay 
in good money. A protective tariff and the gold standard, both 
now the existing achievements of the Republican party, in spite 
of Democratic opposition, give the laborer that opportunity. 

Enactmenta of Labor. 

Tke Republican party believes in the equality of all men bo- 
fore the law ; believes in granting labor's every request that 
does not seek to accord rights to one man denied to another. 
Fair-minded labor asks no more, no less, and approves the record 
of the Republican party because of that party's acts. 

I have helped to make my party's record in the enactment of 
tke Eight-Hour Law, the Employers' Liability Act. the statutes 
to minimize the hazard of railroad employees, the Child Labor 
Law for the District of Columbia, and other enactments designed 
•specially to improve the conditions of labor. I cannot hope to 
better state my position on injunctions than by a specific endorse- 
ment of Mr. Taft's Cincinnati declaration on that subject. That 
endorsement I make. 

The Colored Ra.ee. 

As a nation our duty compels that by every constitutional and 
reasonable means the material and educational condition of the 
colored race be advanced- This we owe to ourselves as well as 
to them. As the result of a course of events that can never be 
reversed, they are a part of our civilization; their propserity is 
our propserity ; their debasement would be our misfortune. The 
Republican party, therefore, will offer every encouragement to 
the thrift, industry and intelligence that will better their pros- 
pect of higher attainment. 

Army and Navy and Merchant Marine. 

I believe in the maintenance of such an army, the upbuilding 
of such a navy as will be the guarantee of the protection of 
American citizens and American interests everywhere, and an 
omen of peace ; that at every exposed point we may be so fortified 
that no power on earth may be tempted to molest us. I believe in 
the restoration of the American merchant marine and in render- 
ing whatever financial aid may be necessary to accomplish this 
purpose. 

I approve the movement for the conservation of our natural 
resources; the fostering of friendly foreign relations; the en- 
forcement of our Civil Service Law, and the enactment of such 
statutes as will more securely and more effectively preserve the 
public health. 

Adherence to Roosevelt Policies. 

Our platform, as it should do, pledges adherence to the 
policies of President Roosevelt ; promises to continue the work 
Inaugurated during his administration, to insure to persons and 



ADDRESS OF HON. JAMES S. SHERMAN. 381 

property every proper safeguard and all necessary strengthen- 
ing of administrative methods will be provided to furnish efficient 
inspection and supervision, and prompt righting of every in- 
ce, discrimination and wrong-. 
I have not touched upon every plank of our splendid platform, 
but I reiterate my full and unqualified approval of its every 
promise. 

No Class Legislation. 

I emphasize as my party's creed and my faith that in legisla- 
toin and administration favor should be extended to no class, 
no sect, no race, no section as opposed to another. To foster 
class hatred, to foster discontent, i3 un-Republican and un-Amer- 
ican. Our party stands on the declaration that all men are 
created with equal rights and it will have no party in the enact- 
ment of execution of any law that does not apply alike to all 
good American citizens, whatever their calling or wherever they 
live. It will allow no man in our land to have advantage in law 
over any other man. It offers no safeguard to capital that is 
not guaranteed to labor ; no protection to the workman that is 
not insured to his employer. It would offer to each and to 
both in pursuit of health and happiness and prosperity every 
possible advantage. 

The work that has been given the Eepublican party to do has 
been of immense importance. Much of that work has been fully 
accomplished; some has yet to be completed. Republican declara- 
tions once in our platform and no longer there, are complete be-> 
'cause they have become accomplished facts. On the other hand, 
Democratic declarations have been abandoned because the voters 
have pronounced them to be unwise and unsafe and upsuitpd to 
our time and our country. 

Tht People Rale. 

"Shall the people rule?" is declared by the Democratic plat- 
form and candidate to be "the overshadowing issue * * * 
now under discussion." It is no issue. Surely the people shall 
rule, surely the people have ruled ; surely the people do rule. 
No party rules. The party, commissioned by the people, is sim- 
ply the instrument to execute the people's will, and from that 
party which does not obey their expressed will, or which lacks 
the wisdom to lead successfully, the people will withdraw their 
commission. 

For half a century, with but two exceptions, the people have 
commissioned the Eepublican party to administer the National 
Government; commissioned it because its declared principles ap- 
pealed to their best judgment; commissioned it because the com- 
mon sense of the American people scented danger in Democratic 
policies. Ours always has been, always must be, a government ef 
the people. That party will, after March 4 next, execute old laws 
and enact new ones as in November it is commissioned b} 1- the 
people to do. That commission will be from an untrammeled 
American electorate. Shame on the party which, shame on the 
candidate who, insults the American people by suggestion or 
declaration that a majority of its electorate is venal. The Amer- 
ican voter, with rare exception, in casting his ballot, is guided 
by his best judgment, by his desire to conserve his own and the 
public weal. 

The Overshadowing Issue and Party Record. 

The overshadowing issue of the campaign really is: shall the 
administration of President Roosevelt be approved; shall a party 
of demonstrated capacity in administrative affairs be continued 
in power, shall the reins of government be placed in experienced 
hands, or do the people prefer to trust their destinies to am 
aggregation of experimental malcontents and theorists, whose 
only claim to a history is a party name they pilfered. 

With a record of four decades of wise legislation y two score 
years of faithful administration; offering its fulfilled pledges as 
a guaranty of its promises for the future, the Republican party 
appeals to the people and, with full confidence in their wisdom 
aad patriotism, awaits the rendition of the November rerdiot. 



REPUBLICAN NATIONAL COMMITTEE. 



Officers. 



Frank H. Hitchcock. Chairman. 

William Haywakd, Secretary. 

George R. Sheldon. Treasurer. 

William F. Stone, Sergeant-at-arms. 

Victor L. Mason, Assistant Secretary. 

Fred W. Upham, Asst. Treasurer. 

Richard V. Oulahan, Director of Literary Bureau, Eastern 
Headquarters. 

Victor Rosewater, in charge of Western Branch of Literary 
Bureau, Chicago. 

T. Coleman du Pont, Director of Speakers' Bureau, New 
York. 

Joseph M. Dixon, Director of Speakers' Bureau, Chicago. 

Executive Committee. 

Charles F. Brooker, Connecticut. 
T. Coleman du Pont, Delaware. 
William E. Borah, Idaho. 
Frank O. Lowden, Illinois. 
Charles Nagel, Missouri. 
Victor Rose water, Nebraska. 
William L. Ward, New York. 
Edward C. Duncan, North Carolina. 
Boies Penrose, Pennsylvania. 

Advisory Committee. 

Richard A. Ballinger, Washington. 
Cornelius N. Bliss, New York. 
Powell Clayton, Arkansas. 
W. Murray Crane, Massachusetts. 
William Nelson Cromwell, Now York. 
John Hays Hammond, Massachusetts. 
Franklin Murphy, New Jersey. 
Charles P. Taft, Ohio. 
Arthur I. Vorys, Ohio. 

Elmer E. Dover, Secretarv. 



Alabama— 1\ D. Barker, Mobile. 
Arkansas — Powell Clayton. Eureka Springs. 
California— George A. Knight, San Yv tvheisco 
Colorado — Charles E. Cavender, Leadville. 
Connecticut — Charles F. Brooker, Ansoni..i. 
Delaware — T. Coleman du Pont. Wilmington, 
Florida — James jJT. Coombs, Apala^h'icola. 
Georgia— Henry Blun, Jr., Savannah. 
Idaho — W. F. Borah, Boise. 
Illinois— Frank O. Lowden. Oregon. 
Indiana— Harry S. New, [ndianapolis. 



REPUBLICAN NATIONAL COMMITTEE. 541 

Iowa — Ernest E. Hart, Council Bluffs. 

Kansas — D. W. Mulvane, Topeka. 

Kentucky — A. R. Burnam, Richmond. 

Louisiana — Pearl Wight. New Orleans. 

Maine — John F. Hill, Augusta. 

Maryland — William P. Jackson, Salisbury. 

Massachusetts — W. Murray Crane, Dalton. 

Michigan — John W. Blodgett, Grand Rapids. 

Minnesota — Frank B. Kellogg, St. Paul. 

Mississippi — L. B. Moseley, Jackson. 

Missouri — Charles ISagel. St. Louis. 

Montana — Thomas C. Marshall. Missoula. 

Nebraska — Victor Rose water, Omaha. 

Nevada — P. L. Flanigan, Reno. 

New Hampshire — F. W. Estabrook. Nashua. 

New Jersey — Franklin Murphy. Newark. 

New York — William L. Ward. Portehester. 

North Carolina — E. C. Duncan, Raleigh. 

North Dakota — James Kennedy, Fargo. 

Ohio — A. I. Vorys. Lancaster. 

Oklahoma — C. M. Cade, Shawnee. 

Oregon — R. E. Williams, Dallas. 

Pennsylvania — Boies Penrose, Philadelphia. 

Rhode Tsland — Charles R. Brayton. Providence. 

South Carolina — John G. Capers. Greenville. 

South Dakota — Thomas Thorson, Canton. 

Tennessee — Nathan W. Hale, Knoxville. 

Texas — Cecil A. Lyon, Sherman. 

Utah— C. E. Loose. Provo City. 

Vermont — James W. Brock? Montpelier. 

Virginia — Alvah H. Martin, Portsmouth. 

Washington — R. L. McCormick, Tacoma. 

West Virginia — N. B. Scott, Wheeling. 

Wisconsin — Alfred T. Rogers, Madison. 

Wyoming — George E. Pexton, Evanston. 

Alaska — L. P. Shackelford, Juneau. 

Arizona — W. S. Sturgis, Tucson. 

District of Columbia — Sidney Bieber. Washington. 

Hawaii— A. G. M. Robertson, Honolulu. 

New Mexico — Solomon Luna, Los Lunas. 

Philippine Islands — Henry B. McCoy, Manila. 

Porto Rico— R. H. Todd, San Juan. 



Republican Congressional Committee— 1908. 



Officers. 

Wm. B. McKinley, Chairman. 

James A. Tawney, Vice- Chairman. 

H. C. Louden slager, Secretary. 

Chas. G. Dawes, Treasurer. 

Henry Casson, Asst. Secretary. 

John C. Eversman, Asst. Treasurer. 

William J. Browning, Auditor. 

Francis Curtis, Director Literary Bureau. 

Executive Committee. 

James A. Tawney, Minnesota. 
Adin B. Capron, Ehode Island. 
James K. Mann, Illinois. 
Nicholas Long-worth, Ohio. 
James H. Davidson, Wisconsin. 
J. Hampton Moore, Pennsylvania. 
John W. Weeks, Massachusetts. 
Bichard Bartholdt, Missouri. 
James M. Miller, Kansas. 



California — James C. Needham, Modesto. 

Colorado — Bobert W. Bonynge, Denver. 

Connecticut — 

Delaware — Hiram B. Burton, Lewes. 

Idaho — Burton L. French, Moscow. 

Illinois — James B. Mann, Chicago. 

Indiana — Charles B. Landis, 'Delphi. 

Iowa — Albert F. Dawson, Preston. 

Kansas — -James M. Miller, Council Grove. 

Kentucky — Joseph B. Bennett, Greenup. 

Maine — Edwin C. Burleigh, Augusta. 

Maryland — Sydney E. Mudd, La Plata. 

Massachusetts — John W. Weeks, Newton. 

Michigan — Joseph W. Fordney, Saginaw. 

Minnesota — James A. Tawney, Winona. 

Missouri — Bichard Bartholdt, St. Louis. 

Montana — Charles N. Pray, Fort Benton. 

Nebraska — John F. Boyd, Neligh. 

Nevada — Senator George S. Nixon, Beno. 

New Hampshire— Cyrus A. Sulloway, Manchester. 

New Jersey — Henry C. Loudenslager, Paulsboro. 

New York — James S. Sherman, Utica. 

North Dakota — Asle J. Gronna, Dakota 

Ohio — Nicholas Longworth, Cincinnati. 

Oklahoma — Bird S. McGuire, Pawnee. 

Oregon — William B. Ellis, Pendleton. 

Pennsylvania — J. Hampton Moore, Philadelphia. 

Bhode Island — Adin B. Capron, Stillwater. 

South Dakota — 

Tennessee — Walter P. Brownlow, Jonesboro. 

Utah — Joseph Howell, Logan. 

Vermont — Kittredge Haskins, Brattleboro. 

Virginia — C. Bascom Slemp, Big Stone Gap. 

Washington — William E. Humphrey, Seattle. 

West Virginia — James A. Hughes, Huntington. 

Wisconsin — James H. Davidson, Oshkosh. 

Wyoming — Frank W. Mondell, New Castle. 

Territories. 

Alaska — Thomas Cale, Fairbanks. 
Hawaii — Jonah K. Kalanianaole, Honolulu. 
New Mexico — William H. Andrews, Albuquerque. 
- 542 



Chairmen Republican State Committees, 



Alabama — Joseph C. Thompson, Birmingham. 

Alaska — J. D. Sheldon. Valdez. 

Arizona — Hoval A. Smith, Bisbee. 

Arkansas — F. W. Tucker. Little Bock. 

California — George Stone, San Francisco. 

Colorado — John F. Vivien, Denver. 

Connecticut — Michael Kenealy, Stamford. 

Delaware — T. C. du Pont. Wilmington. 

Florida — Henry S. Chubb. Gainesville. 

Georgia — Clark Grier. Macon. 

Idaho — James H. Brady, Focatello. 

Illinois — Boy 0. West, Chicago. 

Indiana — James P. Goodrich, Indianapolis. 

Iowa — C. F. Franks, Des Moines. 

Kansas — J. N. Dolley, Maple Hill. 

Kentucky — Bobert H. Winn, Louisville. 

Louisiana — Frank B. Williams, Patterson. 

Maine — Byron Boyd, Augusta. 

Maryland — Thomas Parran, ^Baltimore. 

Massachusetts — George H. Doty, Boston. 

Michigan — Gerrit J. Diekema, Holland. 

Minnesota — A. D. Brown, Madison. 

Mississippi — Fred W. Collins. Summit. 

Missouri — Walter S. Dickey, St. Louis. 

Montana — Fletcher Maddox, Great Falls. 

Nebraska — William Hayward, Lincoln. 

Nevada — TL&rry J. Humphrey, Reno. 

New Hampshire — Jacob H. Gal]inger, Concord. 

New Jersey — Franklin Murphy, Newark. 

New Mexico — H. C. Bursum, Socorro. 

New York — Timothy L. Woodruff, New York City. 

North Carolina — Spencer B. Adams, Greensboro. 

North Dakota — L. B. Hanna, Fargo. 

Ohio — Henry A. Williams, Columbus. 

Oklahoma — Joe H. Norris, Guthrie. 

Oregon — W. M. Cake, Portland. 

Pennsylvania — W. R. Andrews, Philadelphia. 

Rhode Island — George R, Lawton, Tiverton. 

South Carolina — Edmund H. Deas, Darlington. 

South Dakota — W. C. Cook, Plankington. 

Tennessee — Newell Sanders, Chattanooga. 

Texas — Cecil A. Lyon. Sherman. 

Utah— Wesley K. Walton, Salt Lake City. 

Vermont — F. C. Williams. Newport. 

Virginia — C. B. Skeinp, Big Stone Gap. 

Washington — Ellis de Bruler, Seattle. 

West Virginia — S. D. Matthews, Clarksburg. 

Y- isconsin — W. D. Connor, Marshf^eld. 

VV'yoming— Charles \Y. Burdick, Cheyenne. 

ai 



Rural Free Delivery, 



SPEECH 

OF 



HON. ARTHUR L. BATES, 

OF PENNSYLVANIA, 

m THE HOUSE OF REPRESENTATIVES. 
Tuesday, May 26, 1908 

Mr. BATES said : 

Mr. Speaker : The rural free-delivery service has fully kept 
pace with the growth and development of our whole country. 
The farmer is now reaping some of the rewards he has so justly 
earned in the past by the burdens that he has borne. He is 
the producer of wealth. He is coming to be one of the most 
independent of all our citizens. No branch of the public service 
has been so well developed and improved in the past few years 
as the rural free delivery. There were only 8,000 rural routes 
in operation six years ago. There are now almost 40,000, and 
these are scattered through every State and Territory of the 
country, so that there is not a rural section in the whole land 
that is not practically covered. This entire service has been ex- 
tended from a small beginning eleven years ago, during the 
three Republican Administrations with which the country has 
been blessed since 1897. I believe that the appropriation of 
$35,000,000 made this year for the support of rural free-delivery 
service brings more direct benefit to the people of this countr}' 
whom it affects than almost any other appropriation made by 
the General Government. 

In 1900 President McKinley, in his message to Congress, in 
speaking of the postal service, used language as follows : 

"Tts most striking new development is the extension of rural 
free delivery. * * * This service ameliorates the isolation of 
farm life, conduces to good roads, and quickens and extends the 
dissemination of general information. Experience thus far has 
tended to allay the apprehension that it would be so expensive 
as to forbid its general adoption or make it a serious burden. 
Its actual application has shown that it increases postal receipts 
and can be accompanied by reduction in other branches of the 
service, so that the augmented revenues and accomplished sav- 
ings together materially reduce the net cost." 

In his first message to Congress President Roosevelt said: 

Among the recent postal advances the success of rural free 
delivery wherever established has been so marked and actual 
experience has made its benefits so plain that the demand for its 



extension is general and urgent. It is just that the great agri- 
cultural population should share in the improvements of this 
service. 

Again, in his last annual message, the President says : 

"The rural free-delivery service has been steadily extended. 
The attention of Congress is asked to the question of the com- 
pensation of the letter carriers and clerks engaged in the postal 
service, especially on the new rural free-delivery routes. More 
routes have been installed since the 1st of July last than in any 
like period in the Department's history. While a due regard to 
economy must be kept in mind in the establishment of new 
routes, yet the extension of the rural free-delivery system must 
be continued for reasons of sound public policy. No govern- 
mental movement of recent years has resulted in greater imme- 
diate benefit to the people of the country districts. 

"Rural free delivery, taken in connection with the telephone, 
the bicycle, and the trolley, accomplishes much toward lessening 
the isolation of farm life and making it brighter and more at- 
tractive. In the immediate past the lack of just such facilities 
as these has driven many of the more active and restless young 
men and women from the farms to the cities, for they rebelled 
at loneliness and lack of mental companionship. It is unhealthy 
and undesirable for the cities tS grow at the expense of the 
country ; and rural free delivery is not only a good thing in 
itself, but is good because it is one of the causes which check 
this unwholesome tendency toward the urban concentration of 
our population at the expense of the country districts." 

These indorsements demonstrate beyond the possibility of 
question that under Republican rule this service, fraught with 
so much good to the people of the rural communities, has been 
nurtured and cared for until it has become one of our perma- 
nent institutions, against which no political party will ever dare 
raise a voice. 

At present New York has nearly 2,000 routes in operation; 
Pennsylvania, 2,100 ; Indiana, 2,200 ; Ohio, 2,500 ; Illinois, 2,800 ; 
Minnesota, 1,600; Missouri, 2,000; Nebraska, 1,000. In fact, 
almost all cases pending during the past year have been dis- 
posed of, and wherever an adequate number of people desired 
the service it has been established and put in daily use. 

INCREASED VALUE OF FARM LANDS. 

The testimony of those who enjoy this service from all over 
the country proves that by reason of the free rural delivery the 
actual value of farm lands has been greatly increased. T have 1 
had farmers inform me that they would not dispense with the 
(Service for $50 or even $100 per annum. It has been estimated 
that the value of farm lands has risen by this nmnns as high n^ 
$5 per acre in many Slates. A moderate estimate would show a 
benefit to the farm lands of from $1 to $3 per acre. 



BETTER PRICES FOR FARM PRODUCTS. 

A better knowledge of trade conditions is always of great ad 
vantage. The farmer is not only the producer, but he is also 
his own salesman, and it is essential that he should be ac- 
quainted with the daily prices of the produce he raises in order 
to know when it will be to his advantage to market his goods. 
He is now enabled to receive a city daily paper giving him 
quotations and prices of stock and produce, and in fact the 
changing values of everything he raises on the farm. By means 
of this better communication with the markets he is able to 
obtain better prices for all that the farm produces. He can 
also receive and dispatch mail much more quickly than before — - 
in fact, he can in many cases obtain an answer to his letter on 
the day following its dispatch. In the old days our rural in- 
habitant was obliged to send to the post-office for his mail, and 
in the busy season, when his horses were busy in the fields, a 
week would sometimes elapse before he or any of his family 
could reach the post-office. Now there are delivered daily in 
the course of a year a half million pieces of mail on rural routes 
throughout the country to the farmers and inhabitants of the 
sparsely settled regions. 

Increased facility always brings increased use and enjoyment. 
The increased number of letters written and newspapers sub- 
scribed for and received has so greatly augmented the revenues 
of the country's postal service as to make the rural free-delivery 
service almost self-sustaining. 

Eural free delivery is encouraging the building of good roads. 
The farmer desires the delivery of his mail, and the Department 
wisely insists that each locality must furnish roads easily 
traversed if such a benefit is to be bestowed. In many local 
ties, therefore, our people have taken the matter of good roads 
into consideration, and through their supervisors and commis- 
sioners have improved grades, turned waterways, built bridges, 
and thus not only aided the delivery of mail, but have facilitated 
general communication among our people. 

This service has been practically established and built up 
within the last eleven years. During the last Administration 
of President Cleveland rural free delivery was condemned atiG 
rejected by the Committee on Post-Offices and Post-Roads of the 
House. Under this same Democratic Administration in 1894 the 
Postmaster-General refused to make use of the airpropriation of 
$10,000 offered him to begin the service. He stated that the pro- 
ject was unwise and could not be carried out. Under the Repub- 
lican Administration it has been extended until it has become one 
of the most beneficial and useful portions of legislation provided 
by the Federal Government. It has become, under Republican 
prosperity and Republican administration of law, thoroughly 
established as one of our permanent institutions. Its general use 
and benefits are conclusive proof of the wisdom of recent Repub- 
lican progress. 



fei 



I 



The House having under Consideration a Privileged 
Report from the Committee on Rules. 



SPEECH 

OF 



HON. JAMES S. SHERMAN, 

OF NEW YORK, 

IN THE HOUSE OF REPRESENTATIVES, 
Monday, April 8, 190S. 

Mr. SHERMAN said: 

Mr. Speaker: The solicitude of the honorable gentleman 
from Missouri [Mr. De Armoxd] on behalf of himself and his 
colleagues for the sanc.titj'- of the Constitution of the United 
States is decidedly refreshing. It is within the memory of most 
of us in this Chamber, and those in whose memory it is not have 
read in history, that the time was, Mr. Speaker, not so very long 
ago wheal the Democratic party was not so solicitous for the 
Constitution as my honored friend from Missouri appears to be 
to-day. Their solicitude to-day seems to be over the matter of hav- 
ing useless roll calls. The absence of solicitude half a century 
ago with reference to a question of vastl\ r greater consequences, 
a question which involved not a mere matter of procedure, but the 
matter of the life of a nation, and I am glad that the time has at 
last come when our Democratic friends are so solicitous that the 
Constitution should be sacredly lived up to. [Applause on the 
Republican side.] 

The gentleman from Missouri intimates that the Republican 
side of the House desires to do away with the roll calls because 
of some fear of making a record upon some question before the 
House. Mr. Speaker, the Republican party in this House, the 
Republican party in this nation, is prepared to-day to accept 
full responsibility, not only for everything that is done, but for 
that which is not done in the way of legislation and adminis- 
tration. [Applause on the Republican side.] We recognize the 
fact, sir. that this Government to-day is Republican in all its 
branches. We recognize the fact that we have a Republican 
President, brave, wise, and courageous. We recognize that we 
have a Republican majority in the Senate, that we have a Re- 
publican majority in this House that is ready to resort to every 
legal, every proper constitutional right to enact such legislation 
deems for the best interest for the greatest number of our 
people, and which is willing and ready to accept full responsi- 
bility for all those measures which are introduced here and 
which are not enacted into law. [Applause on the Republican 
side.] 

We are not anxious, Mr. Speaker, to avoid responsibility. 
The Republican party has always been ready to accept full re- 
sponsibility when it has been in power, and in that respect I 
must say to my honored friend from Missouri that it is in direct 
contrast to the Democratic party, which, even when it ha* ha,d 



the power, has lacked the courage to carry out its declared I 
policies. [Applause on the Republican side.] 

The rule which has been proposed here, Mr. Speaker, is noth- 
ing extraordinary; it is a method laid down by the House pro- 
cedure by which the majority can enact such legislation as it 
deems wise. It is practically and substantially the same pro- 
cedure that was carried out in the Fifty-second and Fifty-third 
Congresses, when our Democratic friends were in a majority 
and when they were responsible for legislation. They invoked 
the action of the Committee -on Eules, properly so, and that is 
what the Eepublican party in this House do to-day, Mr. Speaker; 
they resort, not to unusual methods, but to methods laid down 
by the rules, laid down by the law, to enact legislation, and not 
waste the time in useless and senseless roll calls. 

The Democratic party, Mr. Speaker, under its present leader- 
ship in the House, I assume, believes that they are making 
great political capital by the filibuster of the past two weeks ; 
but, Mr. Speaker, in my judgment they are not deceiving the 
country. The country knows that the way to progress is not 
to put on the brakes. The couiltry knows, even if the Demo- 
cratic party does not know, Mr. Speaker, that the way to move I 
forward is to move forward and not attempt to block the wheels 
of progress. 

P>ut it is a Democratic policy ; it has been heretofore, and I 
assume it will be long afterwards for many years yet to come, 
to attempt to move forward as the crab does — by moving back- 
ward. [Applause and laughter on the Eepublican side.] That 
is not Eepublican policy. The country is not deceived. The 
country is looking to the Eepublican party to enact certain legis- 
lation. It is looking to the Eepublican party to enact the great 
appropriation bills for carrying on this Government, and it is 
looking to this House to enact those laws at the speediest pos- 
sible time, and to adjourn this House, and that is what the Ee- 
publican party proposes to do. Our Democratic friends will dis- 
cover, I expect, one of these days that they have not made the 
political capital out of the maneuvers of last week that they 
supposed they would. Democratic hindsight is always superior 
to Democratic foresight, Mr. Speaker. In 'that respect I think 
their situation can be described in the little verselet about the 
bug, with which we are all familiar, and which runs : 

The lightning bug is brilliant ; but it has not any mind ; 

It stumbles through existence, with its headlight on behind. 
[Laughter and applause on the Eepublican side.] 

That is just what the Democratic party is doing now. Its 
headlight is on behind. It seems to see nothing in the future ; 
it seems to be attempting to deceive the country with the idea 
that it is accomplishing undesirable legislation, forcing the 
Eepublican party to do that which that party does not deem 
to be wise, forcing it in its forward progress by hanging on to 
the wheels of progress, attempting to prevent that vehicle from 
moving forward. But, Mr. Speaker, the Eepublican party; mind- 
ful of its obligations to the country, will, as the gentleman from 
Missouri [Mr. De Armond] admits, adopt this rule and proceed, 
accepting full responsibility for its every act, and enact such 
legislation as it deems wise, pass the great appropriation bills, 
and then go to the country upon the record that it has made 
here, confident that the country understands the whole situation 
and will approve what has been done. [Applause on the Eepub- 
lican side.] 






"No men living are more worthy to be trusted 
than those who toil up from poverty; none less 
inclined to take or touch aught which they have 
not honestly earned."— LINCOLN. 

"The American system of locating manufactories 
next to the plow and pasture has produced a 
result noticeable by the intelligent portion of all 
commercial nations."— GRANT. 

"A currency worth less than it purports to be 
worth will in the end defraud not only creditors but 
all those who are engaged in legitimate business, 
and none more surely than those who are de- 
pendent upon their daily labor for their daily 
bread."— HAYES. 

"Every citizen of the United States has an 
interest and a right in every election within the 
republic where national representatives are 
chosen. We insist that these laws relating to our 
national elections shall be enforced, not nullified." 
—GARFIELD. 

"The right of railway corporations to a fair and 
profitable return upon their investments and to 
reasonable freedom in their regulations must be 
recognized; but it seems only just that, so far as 
its constitutional authority will permit, Congress 
should protect the people at large in their inter- 
state traffic against acts of injustice which the 
State qovernments are powerless to prevent." — 
ARTHUR. 

"I believe that the protective system has been 
a mighty instrument for the development of our 
national wealth and a most powerful agency in 
protecting the homes of our workingmen." — HAR- 
RISON. 

"To increase production here, diversify our 
productive enterprises, enlarge the field and in- 
crease the demand for American workmen; what 
American can oppose these worthy and patriotic 

objects?"— Mckinley. 

"The present phenomenal prosperity has been 
won under a tariff made in accordance with certain 
fixed principles the most important of which is an 
avowed determination to protect the interests of 
the American producer, business man, wage- 
worker and farmer alike."— ROOSEVELT. 



* 8 i £s 



c _ 
3 S 



3 +S 
C « 



■*- c 



II 



3 



riojcoeotOrwOOlft £ 

£fio oa • 
*oo ^ M '£22 IS "o ••« !?■ « ~ •* 



, C5 "CO 
*o CO C. ■ 



Si' 

g 8 Sj S 



an. MBl. " * I - 



I I 



I ! it* 



;H^s 



©02' 









a> cS 



o gg£ a« £ « I.Es 

C 2 71 "d 



tm o 2? <u 



« a ~ c 

Oo ~ «ot>S> =>«>>« 
^PaiiHliiiiHSHHr" 




II 

>= > 
■HlW^lllfaHtfB^BHIllV 

0>!it*t,^ .? T< rt _. C3 V rt ~ > ; 

u^S^'SSJi'igS .few - 

^ ^ ■ z fc '/. r s. < ■< < <J sj < < < - 




^■■■n 



> 



wst 



irO.1 3 









LIBRARY OF CONGRESS 

021 051 345 







■ 



■ 







